People SUFFERING MASSIVE BUYERS REMORSE Made These Mistakes
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- เผยแพร่เมื่อ 28 ก.ย. 2024
- The reality is, if everyone who bought a home over the past few years just followed these simple guidelines when purchasing, no one would have a buyers remorse. Instead, so many people broke all of these rules and are now stuck with a house they hate, can't afford, or both! Let this be a warning if you are looking to jump into the housing market in the near future.
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#realestate #housingmarket #homeprices #housingmarketcrash
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Market DEMAND SURGES As Home Prices Plummet th-cam.com/video/m29DRyw43W4/w-d-xo.html
Do you feel that this remorse applies to the investors/people who bought homes here from let's say Chile or Brazil?
@ 1:38 , I would have walked on the hood of that car. Talk about misplaced entitlement to block a sidewalk as your parking spot !
Michael, why do you have such fluctuations in property taxes?
I love your videos that give hope to those waiting on the sidelines to buy! LOVE THEM! There are lots of videos on the economy but few cover the true story of the housing market like you do! You rock!!!!
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I located her, sent her an email, and scheduled a call; hopefully, she will reply because I want to start the new year off financially strong.
As a former OTR truck driver, the largest takeaway that I got from my time crossing the country was that I found no "favorite place to live".
So, I retired where I lived.
The Midwest.
Avoid debt slavery at all costs.
And if you decide to rent out rooms,
post your listings at a nearby medical school if you can, as medical students tend to be lower profile and less trouble.
Military bases are also really good to find renters, especially if you own a rental home. They usually take care of the property and several bases have programs that can help the serviceman find a property and they will help you go after them if they violate the property. Just be aware of the military clause of a lease agreement.
The worst renters are security guards or anyone connected with law enforcement. They will give you the most trouble.
@@marblox9300 the worst renters are people with bad credit history and no stable job
@@LanaUSA212No Im not! lol
Until you wake up missing a kidney. I've seen it a hundred times.
I don't know how people are doing it ...a 750k home with 20% down is 4000$ per month payment . That's no taxes and no insurance and that's 4000$ net amount . I wouldn't sleep at night.
What options do you have?
gotta earn 40k or more a month and sleep a little better
@@russiasvechenaya58 anyone making 40k a month isn't living in a 750k home.
@@dp.7616generally these people are rolling up from a previous house purchase that they have a ton of equity in.
@@dp.7616 oh yeah tell me what they’re living in?
I don’t live in Florida, but I live in the Southeast. The value of my house has more than doubled since 2002. I constantly get letters and texts from companies wanting to buy my house and I’m like, “yeah, so I can buy another house and get into another 30 year mortgage and pay higher mortgage payments with a higher interest rate?”. WTF? What I do know is that wages have not increased nearly at the rate that homes have. Something’s gotta give. These home prices are not sustainable.
My answer: Bought in 2003 as you. Now I can take $500,000 cash out, still live in the house and never have any monthly payments for the cash out.
I have a friend who lives in Dallas and thinks a 4K property tax aint bad???
But they are as long as you have demand outstripping supply. Why do you think so many immigrants are being allowed in? They’ve got to live somewhere. I think you’ll find banks are diversifying from providing home loans to buying properties so they can put them in a letting portfolio.
I’ve got two friends who paid at least 150-200K over the actual value of their houses. I told them not to do it, and they said I was crazy. But now both are under water. I joked with both of them, saying I’ll be buying their short sale homes in 2-3 years and renting it back to them. Which, might actually happen!!
Unless Blackstone or Vanguard beat you to it.
Blackstone is toast, and Vanguard, I doubt it, as these big firms are finally starting to pay for their greed, and it’s only going to get worse for them, imo.
the predator class was also the protected class at least up until now. the times maybe a changin. @@light1908
why does it matter if they are underwater? does it have any affect on their payment?
The size of payment is the problem! as the house that their payment represents is now plummeting in value, especially considering what’s happening with the economy and the purchasing power of the dollar. Thus, the payment itself is the problem, as they’re losing damn near $1000/month in comparison to what their payment should be considering the actual value of their property.
My mom was ecstatic over her house doubling in value since she bought it 15 years ago.
Then she got her property tax bill, assessed on the increased value.
Tax can only go up %3 every 3 years. Did your mom never look? Haha😅
Because I’m disabled in the state I live in, my property taxes are frozen. However, in January of this year I got my new insurance homeowners policy and it had gone up approximately 30% I believe. So if you don’t get hit with property tax, you’ll probably get hit with insurance if you do have an escalating peace of property. It’s always a double edged sword.
I Love being a single minimalist, high income earner with independent adult kids, not married and no debts!
The new American dream is staying fluid, and retiring abroad and traveling the world. Not dying in the same neighborhood after 30 to 40 years. Live a little!
Doing the same her minus the kids. (being a minimalist did wonders for my mental health). Just returned from a 90 day Japan trip.
No grand kids? 😢
Love that
Love that
Love that
I think HGTV has given too many home buyers delusions of grandeur
I totally agree with your comment here! I was just thinking the same thing. We have been brainwashed by these programs that we are ‘entitled’ to live in a house that they show on these programs. HGTV is partly responsible for irresponsible buying of homes today!
Yes, completely agree
Boy, that's the truth!
In particular, the house flipping shows.
The gross 🤮 Gray, Barn doors, shiplap.
I've been sitting on the sidelines watching prices drop here and watching friends who bought in the last few years sink deep into debt. Meanwhile, Ive been investing and saving for the crash that is coming
You may not have a job when it crashes. It will only happen during a recession
I’m glad I watched this video ! As a new time home buyer seeker , you stopped me in my tracks. Someone in the comments said something about HGTV has us delusional, they are right 😂…I was embarrassed for being a renter and like you said , I’d rather live in my parents basement then pay 50% of my income . I do NOT want to be house poor so I will have to sit this out until these house prices come all the way down ! Thank you for saving me from myself.
GOOD!! It made me sick watching people on tv buy homes at TOO high of a price and pricing me and my friends/family out.. hope they get everything they deserve!
Agree 100%.
Someone is salty
@@kmac9243 No, for their stupidity and for buying up multiple houses at the same time .
It's not the buyer, it's your neighbor the seller.
Herd Mentality
I've never judged anything off my gross income.
Like you said, it simply doesn't make sense.
the only people that benefit from your gross income is an employer that can expense your wages!
Gross is more steady.
Take home can vary so much by person....
Best is gross minus taxes.
@@hvaball150 don't go into accounting.
@@kmac9243 true,
I don't feel bad for the people who wanted to wayyy out bid everyone
They did it all wrong. Backwards actually.
I out bid with cash when I bought my dream condo on Marco Island in 2008 but it was after housing crash when many homeowners were caught with their pants down forced to sell,foreclosure,short sales,etc.,and take losses.
Many home values dropped 50% or more in Florida and several states.
Same for cars
@@blackworldtraveler3711 LOVE Marco Island.🌴
People want to blame realtors, appraisers, etc., but the buyers as a group, are the problem.
I'm a renter and I am not ashamed. I am glad. Someday I might buy but it will be when I find a cheap place and I will pay cash. I expect a housing correction. The prices are inflated, in my opinion. I am in UK.
That small house asking $17.5 thousand a month is insane! Who pays that kind of rent for so small a house?!
For real. That's $210,000 per year, so you would ideally need to earn about $840,000 annually ($440 an hour) to afford it.
The history on that one is crazy, someone bought it for $2.75M and immediately flipped for $3.8M (even tried for $4.4M). That Buyer then tried to sell for $4M and eventually for $3M only taking and $800K losssold it for $3.8M must be laughing! Now for a ridiculous rent that not sure who in their right mind would pay.
It's not about the size but how you use it.
Trust fund babies are about the only ones that can afford that. Most doctors and lawyers would not have that kind of income to rent that house.
People who never had to work hard for a dollar. It's not that it's $17k a month. It's that anyone with two working eyeballs can see what they are offering for that amount, and if you have common sense you see it's not worth that amount ever. Buying that shows a person has no actual value of actual things... just what 'the market says' and that's how these "I'm-smarter-than-you's" get trapped.
Yes in my area about 3 1/2 years ago people were paying anywhere from 50K- 100K more than what the houses were worth.
I said then, they are making a huge mistake and they will soon be under water.
(Oweing more than the house is worth)
Not good!
Always fascinating to hear your US perspective. My two European cents:
a) a house that you live in is not an investment, it is one of several options you can choose from when deciding where you want to reside and how you want to pay for it.
b) As long as the house is not paid for in full, it not you who own it, it is the bank.
c) When you take out a mortgage, it should be on a fixed rate for the entire time it will take you to pay for it.
d) a side note: I received my property tax bill last week. We are still very fortunate in this respect in Germany but the vast majority of Germans are not even close to realising this. Mine in 2024 is less than 500 Euro ....... per year !
As an American I am astounded by how my fellow country men spend and use money. I am stunned at what I see people buy and then complain and complain and complain they have no money when they spend it all on a big house, a fancy car, going out to eat all the time and through money around they are super rich. People who live on the ocean own a Porsha, a boat, a truck, and a motorcycle and don't have enough money in the bank to go two weeks without a paycheck. I was raised by my single mom in my grandparents home. My grandparents had lived through the great depression. My grandfather was a doctor and after he got out of medical school in the 1930s people had no money so they he would often take food as payment from his patients. Knowing my grandfather he probably did not even charge his patients if they had no money. My grandma was raised on a farm in the Southern US in the 1910s and 1920s, she was as tough as nails. They bought little, they waisted little, they watched what they spent like hawks, even when they eventually had money they were very thrifty with their money. I am glad I grew up with them, I learned so much from them. I shake my head all the time with what I see going on over here in America, as a student of history I know it will turn out horrible wrong if people here don't wake up and start to be responsible.
100%. People shouldn’t look at the home they live in as an investment. They shouldn’t even pay attention to that. Either they can afford it and they like it or not.
If it’s an investment property it’s an investment. Otherwise, they worry too much about the wrong thing
@@scottperry7311Medicine was largely a pay what you can afford affair before the government regulated it. In fact the Catholic church ran a Charity hospital in my home town that was completely free (with a major trauma ER unit and all) until the government forced them to close.
Wow. How are property taxes so low in Germany?
@@viptravels1542 There are a lot of taxes here that are way higher than in the US, starting with income tax. I guess it is a political decision on which way the taxman gets his monies.
I can't believe anyone would buy an ARM after 2008
short memories
If one understands the true terms of an ARM it can be worth a look.
If you have money and could knock out the balance if needed, why not?
I had one. Best thing I ever did. Made out like a bandit.
@@merrywalsh2809 yeah, it can be fine if one understands the terms. Glad it worked out for you. Fact is, historically, one doesn’t keep a mortgage that long…. 5-7 year arm with an understanding of max adjustments once the variable rate triggers can work for many.
I’m currently handcuffed with a 20 year 2.375 rate that’s fixed but we’ve used ARMs before and no issues. My 2nd house in early 90’s was 9% and par for the course at that time. Rates fluctuate I know I’ll never get 2.375 again!
Back in 2008, people in the DC metro area ended up spending so much for their new homes, that many were unable to furnish their homes or even buy gasoline for the car. It sounds like the same thing is now happening in FL.
You have your whole life to fill your house up with junk.
@@jizzyjake6783 Oh, if you mean like a bed to sleep in, or a table to eat at, or maybe a car to get you to and from work, then I guess I agree with you.
I saw that in California too, back in the day
I seen the same in Denver.
Finally, it was about time. I’ve been waiting for this for a few years now.
I am in Scottsdale, Arizona🌵. We haven’t seen much of a drop yet. I want young families to be able to buy a home. Secure families keep our society stable.✌🏽😎🇺🇸
@@davisholman8149 ROFLOL!
great points. im an older guy Boomer ) here comes the replies, but just the points you make are the way everyone used to do things. i love when you said if you qualify for 400 doesnt mean you need to spend 400. Carry as little debt as possible. when we were growing up, our parents only went to a restaurant on special occasions. Ive lived a great life and still been frugal. we retired and wanted to try vegas. we didnt buy a house but rented, and 6 months later we are going back to the east coast. we got rid of all our stuff coming here, which was a big mistake, so we have to replace things. we are getting just what we need and we will get one thing a month paid with CASH. we know we have 5 years left on the roof, so we got an estimate and for the next 2 years we will have a separate savings account and save that cash. this is the way we learned to live. nobody gave me anything, i made my own life. im just a high school graduate. i came from a very poor area in nyc in the sixties and worked hard for what i have. a dirty job nobody really wanted so it paid ok. worked way more than 8 hours a day, all shifts, all days of the week. our fathers taught us a working man sacrifices anything to provide the best life for his family and thats what we did. people saved for years back then for a house and like you said, put down a decent down payment. it wasnt any easier for us, we just didnt over spend. im retired and i do ok. i could drive a more expensive car, but i drive a 5 year old hyundai elantra, that i bought, didnt finance. I watch you every day and youre one of the only people that put forth what most people dont use. common sense. id like to add one thing i found helpful. before you get a house, take adult education classes to learn basic maintenance. you tube is fantastic for learning how to do things yourself. just dont use the guy with a home depot card and a computer. use the guy thats a retired plumber, etc that knows what hes doing. thats how i learned, except then it was books. and over the years i learned a lot. theres not too many things i dont know how to do at this point, but getting old, my body cant handle it so i do hire things out some now. labor is a big part of any job, especially plumbing and electrical. a 1000 dollar minor electrical job, which isnt very hard costs maybe 50 in materials. once you learn it, you have that skill for life. to me, with that same electrical job, maybe an hour or 2, i consider i made 950 dollars. i like making 4 to 900 dollars an hour. you are spot on on all this stuff. you have the best thing one can have. common sense. thanks for all the great truthful info. i hope you keep making videos, ill keep watching everyday. i wish you well and may god bless you and your family
Thanks Michael. 100% practical information. Houses are still seriously overpriced by any standard you can think of. A 40% correction would bring house prices in line with median incomes imo. Austin Texas is crazy overpriced.
There are pros and cons to everything though. If you overpaid for your home but got a low percentage rate it ends up working out. We won't see rates like that again probably ever.
We learned our lesson 17 years ago. No more!
We talk about stimulus money causing inflation but the houses that magically went from $150k to $400k in 10 years caused hyper inflation. People sold and brought big bags of money to mostly rural states injecting that money into the economy.
Understand that all cases aren’t the same. My husband and I lived in NC when he was diagnosed with Lou Gehrig’s disease. We wanted to move back to NJ to be by our kids since my husband was given only 3 years to live. This was in 2021. Every house we were interested in sold within a day of listing. Consequently, we had to buy a house that was much too expensive and much too big, but it got us back home. Fortunately the mortgage rate is 2.99%.
My husband is gone now and I am stuck with this giant house, but, because of the rise in interest rates, it doesn’t make financial sense for me to move. Fortunately, I am in a position where I can wait until house prices/interest rates go down.
All situations are different.
So sorry for your loss.
I'm sorry for your loss. I wish you all the best.
@@peppermintpatti5152 Thank you. I was trying to make the point that some of us who bought houses that were too big and too expensive might not have had a choice. We never know what other people are going through in this life. I had to get my husband back home to spend his remaining days with our children. ALS is a terrible disease. Three years ago he was playing golf almost everyday, and in 30 months he was a quadriplegic.
Hello Michael !!!:)- As a resident of Las Vegas for over 12 years now, We had a genius population from California during the pandemic and paid well over $100k for houses out here which over inflated the market in Vegas by over 30% driving the medium house from $350k to over $485 for the same house!!! Kudos to the IGNORANT people who chose to listen to the media!!! Game Over Genius'!!! :)-
i think many new home buys don't realize they need to add all their expected monthly bills in their calculation for the debt-to-income ratio and this is hurting their monthly budget. for example, not only the mortgage, but also property tax, home insurance, HOA, car note, car insurance, utilities, food, city taxes, deductions into 401k/retirement. and this total divided by my monthly gross paycheck had to = 28%. I mathed it out for myself, and i think i would need to make 170K/year to afford the median home here in Redmond, WA.
I rent. $1250 a month for a 3-bedroom house. No car note. Saving for the next wave, which will be for the buyers!!! Glad hubby and I didn't buckle. I can wait.
I'm just different. I had saved up about $190,000. I inherited $600,000. And my small but nice condo purchase 15 years ago was for $75,000. Too many Americans are so willing to overextend themselves on houses and vehicles. I like the safety net sitting in the bank at 5.55% interest.
Brilliant Marblox! Great work!
Exactly! Back in 2004, I was pre-approved for $375k, I told my realtor don't show me anything over $150K, bought a nice house for $142K, sold for $390K. If you don't mind me asking, how do you get 5.5% at a bank? CDs/HYSA?
@@malcolmlove4602 CD rates have risen in 2023 - finally. I got a flyer from one bank that expired but another bank matched it.
I pay 11% of my take home net on my house. I have a 30 yr at 2.75% from Oct of 2020. I won’t ever move.
Those property taxes are insane. More people need to push back against that.
On the contrary they need to raise them on all pricy home and use the revenue wisely
I'm in N. FL, house located on 2 in-city blocks, (so homestead exemption was only on one) and my property taxes were "only" $4100 for a 2100+ sq. ft. house.
The property taxes are actually modest; what you need to look at is the millage rate. These tax numbers are crazy because the houses are millions of dollars!
We’ve lived in the same home for many years here in Florida, house value is $400,000. Our taxes are only $2,400/yr.
If we hadn’t lived here but a year or so, the taxes would be about $5,000.
@@youflatscreentube The houses are not worth more. Money is worth less.
Don’t feel bad for these people owning multiple homes that are empty
Micheal is 💯 correct, the 25% of net rule for monthly housing expense is a must if you want to thrive..I am amazed that most home buyers and young people these days do not know this rule!
FOMO FEAR screws everyone eventually(except for the lucky few).
Fixed rate mortgages are the way to go, no HOA and no Mella Rose. Nice to know you have control over your finances without someone continually increasing your costs. It's bad enough that home owners insurance and property taxes continually go up without adding increased mortgage costs by getting an adjustable loan. Thanks Michael !
Owning a house is a lifestyle choice and an expense. The maintenance costs alone on my house over the last 5 years would have covered the rent for that time.
I was told prices are not coming down in Ohio, but personally I still wouldn't buy in this market
I’m so grateful for my 1000 square feet condo in Chicago and it’s almost paid off. In addition I got it for a few thousands. It was newly remodeled and I can see the skyline from the corner of my street.
Chiraq sweet home Chicago!
Some people are learning the hard way the cost of keeping up with the Joneses 😃
Bought in 2013 with a 7 ARM at 4% . Didnt think we would be in the house for that long and saw our mortgage payment go up 300$ per month for a few years . Finally refied in 2021 at 4.25 for 30yrs. Lesson learned...never will get an arm again unless I'm absolutely sure it's a short term situation
ARMS were never even allowed till the 70's, I think. They were a terrible idea, always.
This happened in the car market, too. Im into 80's and 90's cars. Acura Integra Type Rs were selling for $100k+! One sold for $112k! As were many other cars.
Unless you are Jay Leno, forget about it.
Fookah dat !
Whew.....I'll never think about stepping foot in FLA
Love the scenic, walking talking videos Michael, great job, excellent information.
What’s up with people park in their cars on the grass is that a Florida thing?
You’re overpaying if you buy now after waiting for 4 years. They said people were overpaying in 2020 and now they say it’s a good deal and they got lucky. I know someone who waited for the crash and now he’s overpaying for rent and can’t afford to buy a house.
I have no sympathy for ppl that paid 100k or more over reserve, they will learn a valuable lesson.
You know where to find sympathy ?
Between shyt and syphillis IN THE DICTIONARY !
I'm happen to be one that does NOT have remorse. I'm 100% happy with our new house in a very desirable area. (Sold our old home to upgrade to this one back in 2021).
Housing has NOT gone down in price in my area!!
Great video Michael. Don’t forget about the people that over extended themselves and waived their home inspections all to win the bid!!! Now these fools have 10’s of thousands on home repairs that they can’t afford. My family was blessed to pay our home in cash after years and years of saving our pesos while serving in the Army. Everything you say is spot on Michael from increased home insurance/property taxes/home repairs and renovations. It’s not cheap out there every one. Until you sell your house your house is a money pit period!!!
I sold my big beautiful home to completely get out of all debt. I am now renting a lot and living in an RV until housing prices come down. Then buying something much smaller and remaining out of debt (FL)
Thank you, Michael!! It is better to rent if you cannot afford house in your area!! 🎉🎉🎉 💯%
“Renting” has it’s place no doubt
Only if you don't care about 20 years down the road when rent is more expensive than a house bought now.
@@hvaball150plus that “equity” thing.
@@davidh8293negative equity thing also
@@davidh8293or that negative equity thing for those who purchased 2021-2023
Up and coming community , new hospital, rural California.
Many houses under $300k Oroville, California. Many new businesses going in, lots of new apartments going in just this year.
These "planned community" are the worse. It will be a miserable sub-division with no nearby facilities and a blood sucking HOA.
too bad it is in Cali
How can ya not like this guy with his honesty....
Everything is spot on, nothing I can think of to add on this one.
14:24 pretty sure he meant to say "lower" not higher the debt-to-income ratio. Overall, very informative and comprehensive video. Great advice and guidance. Thank you!
Michael, before I started watching your channel I had no idea how insane the Florida real estate market is.
Just today I watched a video about a HOA in the Tampa area whose master policy increased 1,000%!! Apparently even Citizens won't cover these 56 units due to some weird defect in the roof.
The other video I watched was about a condo in Miami. Each owner was asked to pay $175,000 toward 40 year condo recertification. There seems to be some shady management company that grossly over inflated the maintenance/repair bill.
What the hell is going to happen in 2025 when condo fees in Miami go from say $600/mo to $1,500 or more overnight?
When Michael tells you that, you will realize his theory was wrong.
Anyone in a FL condo, especially if it's 40 years old, should be selling and running right now...before it's too late.
You're dead on right about buyers not putting enough down! We bought a 630K house and put $200K down. Our payment is very manageable for a relatively large home (3K sf)
Thanks Michael! I appreciate this video. Own a few houses w good equity and keep getting enticed to buy another! But NO WAY. I’d be house poor! Thanks for the reminder
We purchased our home in 2003. Easily afford the small mortgage, property taxes, and insurance. Valuation has gone so high that today we have no mortgage and the taxes and property insurance have risen so high that we are paying more for those two items than we ever paid when we had a mortgage. Cities and school raise rates and values go up. Insurance company raise rate. I think of the movie “Gone with the wind” where the Yankees raised the taxes sky high on Tara to get the southerner to lose their homes. Same today as post civil war. Things never change
Awesome video! So true! Love your break down of the cities.
I own homes in Miami, bought it in 1981 new construction. I hated Florida. Lived there two weeks. Left. Rented the place out for quite a while. Purchased brand new 3 br 2bath for 21,200. Today: 750-850k. I own my Main home in the northeast, and my summer home on the coast off Maine. And I mean coast- when a nor’easter blows my sunroom windows are peppered with saltwater from the bay. I only owe taxes. I owe no one except my monthly AMEX nothing. No car payments either.
No homeowner’s?
these videos are so good, because when you are ranting about what gets your goat or various real estate conundrums, it is like a podcast and helps your mental health to get to simulate walking around outside w someone you like to talk to. but also do walk in the sun don't just simulate it, walking is amazing for your health.
If they bought a house with a 3% interest rate, they are doing just fine. Inflation has been a major wealth-transfer to people with low-interest rate loans.I really regret selling.
Your analysis and perspective is complete perfection! The show off’s fail and the do getter’s succeed!
I recently saw an online advertisement that said…You can sell your home…Then lease it back!?!….WTH!?!
YES, YES, YES! I've been saying this for over two years. All of the people who bought houses sight unseen, waived inspections, 20-30% over asking really distorted the market. Their financial reckoning is coming. They were sold a payment and didn't pay any attention to value.
michael sir, you right! i think we all know a family member that ran away from that beast of a house mortgage payment and im seeing tons of foreclosures sir here in louisville kentucky.
Solid video. Full of great information and caution.
Yes, this is a very sad scenario. And it’s bad for America too.
I don’t understand how and why gross income is considered in everything. Gets us every time
Totally off topic question... why do people park on the grass in the neighborhoods?
Street parking illegal. Grass in florida takes little to no maintenance. Everyone does it 👍🏽
Thank you ☺@@sanhara2747
🎉🎉🎉 Thank you Michael.
There are going to be so many awesome opportunities for those of us that are saving money, Working on our credit scores and getting ready to take advantage of these situations. I really don’t wish that people loose their investments but someone is going to buy them and I really hope that black rock and those kind of investors don’t buy them all.
Blessings,Carlos ✝️🙏❤️😊🇺🇸
States must me making a fortune on property taxes. They will get used to it then taxes won’t go down.
When rent is $2200 a month for a 1 bedroom apartment, how is renting the way to go?
Putting 5% or 10% down on a house, OUCH!!
But I want my mcmansion god damnit lol.
It is very Texa-burbian . Huge house with a yard the size of a postage stamp.
My neighbor listed over 2 years ago. It’s a big house. $1.5 mil. Dropped the price to $900k. No buyers and took it off market. Roofers there yesterday putting on a new roof$$$$$. Heard it’s going back on market for $1.2 mil.
❤ what the walkthrough there was built-ins and all the belts and whistles but when you moved in they were all gone
Seattle really wasn't impacted in 2008 (little bit) and we aren't feeling it really now either, but it's insane what it costs to live here. I bought in 2017 with a 2% locked in rate with a 15 year mortgage. My house has hit the million dollar mark and has gone down a bit since Biden happened. I did have a 20k escalator on my offer. Used 8k of it. I feel very blessed because I see people trying to buy with 7.5% or higher interest and very little inventory. People like me who have the low interest are not selling. Young people today can't make enough to pay rent let alone buy and it's a damn shame. Didn't help when we were flooded with San Fran peeps entering the Seattle market a while back either for the buyers.
Hi Michael 😊👍
Take us through PALMETTO BAY one day🙋
I don't think he goes anywhere on the mainland especially south of the city.
My bank bumped my escrow to almost 3/4 of what my first house payment once was. So eventually, when you pay off a house, the taxes and insurance equal your original crazy high mortgage payment from 30 years earlier. So you will pay forever. The stuff that is 1/4 of your payment eventually becoming 3/4 of that payment (taxes and insurance). That is proof of 200% inflation. So the $150k house becomes $450k in 30 years. Then add 5 million households influx in 2-3 years and you get what we have... unintended consequences... maybe an extra 20% inflation, which is $90k, taking the $450k to $540k for that house that your parents bought for $150k
When I'm depressed, I like to watch Mike's videos, so I can firmly cement the depression in my mind for the rest of the day. 😁
Love the sunglasses 😎
They should have been more patient. 😂
Yup with due diligence.
How the hell can the property tax bill go from $4k a year to $42k a year on a smallish house like that….? That’s insane…! And criminal!
It's wised up, not wisened up. We wish you to sound wise.
I’m sure a lot of people who were waiting on the sidelines for a crash and setting for the rent life because they missed the opportunity.
lol right. They don’t have a choice anymore
Plain speaking from a fancy man! A refreshing surprise. Thanks for keeping it real.
People used to move if they couldn't afford an area or no jobs. I moved 900 miles away from where i grew up and got double the house for the same price.
Greedy home builders + greedy sellers + salaries not keeping up with inflation = desperation sets in when no one can buy a home but actually do.
Also, the greedy people who waited on the sidelines for a deal in a housing crash.
My mom always told us not to be a slave to your house. 20 years ago, we were approved for 400,000, but we found a nice new home 2400 square feet for 189. we saved over 2000,000. Our equity is well over what I bought it for. Homes are a long-term investment, at least for now. I sold my first house within 3 years and made 60,000.all I did was landscaping my first home, and it sold in one day
Michael I Love all your podcasts you are definitely a Blessing to us all.
So I got a quote on Progressive Direct $950/6 months for our two cars, our renewal through the agent/broker was $1250!!!!!! Texas
People need to stop blaming the politicians, the banks and everyone but themselves.
....as a population we have become financial idiots. If everyone was going to buy a house, sellit and get rich. Rinse /repeat.
Anyone with common sense knows its all smoke and mirrors, now they want to blame anyone but themselves.
A lot of suffering before we get this economy back to personal fiscal responsibility.
And how many of those old enough, could have bought a house in 2010 for pennies, but didn’t….YOUR FAULT.🤑
Investor-owned, but not occupied, homes play a role in the housing shortage, and by extension overvalued homes. Politicians play a role by legalizing this. Then there's the question of foreign-owned.
@@TheUtuber999 agreed, it's a mess. How many people do you know who don't owe for their car, vacations on the credit card, owe for their travel trailer??? Etc...
The homes are just an insult to injury for most people. Common sense financial decisions are uncommon these days.
Everyone is at fault, the people demanded cheap money from the politicians and the business world was more than happy to satisfy our foolish indulgences.
It's just a damn mess...
@@jamesguptill6611 I will say that I don't know anyone who "demanded cheap money from the politicians."
@@TheUtuber999 everyone has, now that interest rates are up, people think that they are being persecuted.
Tell anyone that they can't go purchase cars, furniture or anything else on credit? What is the response?
We have been spoiled with this cheap money.
@ 1:38 , I would have walked on the hood of that car. Talk about misplaced entitlement to block a sidewalk as your parking spot !
This video gives me no hope and why do I even work and try so hard. I’m so sad right now and you are right what is the point of trying anymore
Greed and stupidity have consequences over paying hurts everyone
McAllen, TX area has lots of nice homes around $300k
sorry to hear that
The best decision you could have made in 2021 and 2022 was to sell your overpriced house and go rent those new apt complexes and get the rest of your money in treasuries.
Everyone saying renting was bad back then and throwing money down the drain.
I sold small home in Austin, TX in July 2021 (fixer upper previously purchased that had to be remodeled, nothing fancy but we did an excellent job).Took profit (some of it) & paid cash for retirement cottage in E. Texas big thicket forests in 2021 after sell. Absolutely a wonderful choice(low taxes, lower cost of living). No traffic or noise pollution. I retired from federal job in Austin also. So….timing worked out perfectly. I am now enjoying every moment & own my time & life! Drive a simple paid off car (Mazda 2020) & no debts. Plus now closer to family…..it took dedication & patience but was worth the sacrifice.
@@GrandmaBirdy 👍
How many ppl buy a bigger house than what they really need? The same goes with cars. This is one way they get themselves in a "hole". I know someone who was a first year teacher last year and bought a new vehicle for $35,000. WAY TOO MUCH for their salary.
@@richarddonahue3565 Maybe that’s the real issue. A teacher can’t afford a $35K car🤷♂️
I always went by 25% of gross pay for a mtg with taxes
Good info. But I don't agree that if you can't afford a house just "move into your parent's basement and live for free." No, if you are a grownup, it's time to be creative by getting a second job and also a roommate (and if you need childcare, maybe team up with another parent you needs childcare but works a different shift than you). We need to pull our weight. It's not easy of course, but there is tremendous satisfaction in doing this. And with time, the income will get ahead of the bills. You can do it!