I've got news for you; you're not saving money, you're losing money. Let me help paint a clear picture; your landlord is making money off of you... And what do they own? THE HOUSE or apartment that you're in. It's nothing short of idiotic to suggest renting makes more financial sense than owning a home.
@@glasshalfempty1984 it’s nothing short of idiotic to claim your house is an investment. It’s a massive liability. Second you don’t own nothing , you make payments on it until you die. Third the hundreds of thousands of dollars you put into to make repairs renovations etc etc. Fourth , you can make investments on yourself for the next 30 years and build massive wealth. But most people like you, who fall into the banking system trap that suck you dry with all the interest payments causing housing prices to rise for each generations unable to afford anything for the same foundation bricked house. And the worst of them all, you spend your whole life worrying about the dam house. That’s all these people do, keeping them stressed out there life worrying about a house with walls , and your not gonna take your house with you when you die. You’ll be buried with nothing left. That’s the reality.
@@glasshalfempty1984 I'm renting and slowly building wealth, which I know I cannot do anymore if I get a housing mortgage, It is easy to buy a house in cash once you already accumulated stable sources of income. Too much pressure seeing all these people that think getting a house mortgage is the best achievement. They are so proud of having a mortgage, it's dumb. I am renting and yet I have more savings and investments than my friends who get a house mortgage.
I'm renting and have more savings than my friend who bought a ( loan ) a house. Social media is putting a lot of pressure on these matter that's why I stopped facebook.
Ownership without financial independence is a liability and fan be a real nightmare. Been there, done it, never will own again until I am so FI i dont have to work.
This was SOOOO helpful you have no idea. I feel immense pressure to buy a home at 27 when I’m not ready just because renting is “throwing money away” and the “American dream”
Renting is not throwing money away regardless of what people tell you. It provides a place to live. Only buy property when you are absolutely ready to do so. There's nothing wrong with being a permanent renter as long as you are simultaneously investing.
Good thorough analysis. I'd like to add something a bit niche. Buying a home locks you into HAVING TO earn pretty good money, for a very long period of time. You may have a completely different idea about how you want to live your life. You may find it difficult to find a job doing something you enjoy and believe in. Putting yourself in debt may lock you into a miserable existence, set you on the path to live a life of major compromises and an identity crisis. For a lot of people money is not the most or certainly not the only important factor when it comes to choosing a job or profession. While you're without debt, you are free to explore what you want to do with your life, change your priorities, keep searching for answers to your big questions, and if you can't find a happy way to make decent money, then sleep in your car even, or move to the bush and live off the land.
Thanks for the info, I’m 47 female and am renting for 650/mth and am building my investment portfolio and not planning on buying a home (unless I can pay cash) Also what is the cost of freedom?! Mortgage=death pledge
I have 3 (almost 4) kids, and I actually agree with this. I love to rent (I know, crazy, but Portland, Oregon’s market is ridiculous) and I have no issues with kids in rentals. Carpets are immaculate, I clean it too to bottom minimum weekly and it’s a great way to save a lot of money. I personally am saving to put 50% down on a home (sounds nuts) but I’m not paying a crap ton of interest on a property I may or may not get the return on. Hopefully I can pay all cash,. Loved the video, Tess!
So true, for the past few months, I was so stuck on buying a home but now I prefer a tiny home on wheels or not. Just something simple without the commitment .
Thanks for this video! I'm in my way 30s and feeling the pressure of the "shoulds." I'm also currently the roommate of a dear friend who bought her first house 6 months ago. Watching her settle into the new role of homeowner has been very educational. I'm the one who is home more! This spring has been interesting to watch her navigate the house projects: getting a lawn mower, taking out the storm windows, etc while also balancing her normally free weekends. I pitch in ( I was sweeping and mopping our kitchen while listening to the video and had my dad come over to rotatil our garden 3 weeks ago) but I also know the various house owning are ultimately not my problem. A great perk of renting.
Yes! Those first couple years of homeownership can be a real shocked - so many things come up that you don't ever have to think of while being a renter. You're getting a crash course without the cost/risk! :)
I think it’s case by case basis. I don’t like renting and here’s my list 1. Neighbors were too loud. I could hear everything 2. Rent kept going up every year 3. Apartments or townhomes are only so big,anything that’s nice and more sq feet will cost you as much as a mortgage 4. You can’t file taxes on your rental 5. If you want a garage you have to pay extra. 6. Did I mention the noise factor???? 7. Most if not all apartments don’t report to the 3 major credit bureaus 8. I do agree if you’re not financially able to purchase a home YOU SHOULDN’T 9. You can’t take out a home mortgage loan on a rental 10. I respect your views but I strongly disagree. I took out a home mortgage loan and used the money to pay off other bills and financed two businesses. A janitorial business and towing business. I think most people that aren’t financially responsible or disciplined to be a homeowner shouldn’t try to buy a home just yet.I would suggest building new than pre existing so there’s a warranty ect ect. My new home experience wasn’t the nightmare that you speak of. My home has opened many many doors for my family and I but I used my home to help me make other investments. If you’re afraid to take a chance then you’ll never make any advances in life but everything is a gamble. Investing in the stock market or accepting a high paying job in another state. The stock market can crash and you can lose your job for any reason.
I totally agree with you 100%. If you are not financially responsible, you shouldn't buy a house yet. I have been Renting for 15 years when i do the match i realized that i could have been done paying my mortgage by now. It is money throwing away becuase the apartment was never yours in the first place. I think you should probably start renting for a start to get your stuff together ( finance) then buy a house. I am in the process of buying a house and i am not looking back again.
Great points that many people do not think of when promoting home ownership. My husband and I own our home outright. We paid the mortgage off very early, several years ago. I thought after we paid the mortgage off, we would have so much more disposable income. It did not make as much of a difference as I had hoped. Yes, we saved a lot on interest by paying off our mortgage early. But with property taxes, homeowner's insurance, utilities and upkeep, it still costs us quite a bit every month to live in our modest home. The total may be less than rent for a comparable space, but with rent there is so much convenience as you mentioned. Convenience has value, too.
Totally agree! I've determined that a lot of it just comes down to lifestyle preference! I don't think either one is better, just hope i can provide some clarity and insight that i lacked when buying my home!
I agree it is a choice we each have to make depending on lifestyle/ personal preference. Just glad to see such a detailed and reasoned argument against the common "wisdom."
Simpler? Yes. Less stress? Maybe. Smarter? No. You're throwing your money down the drain. Good Lord... With so many people like you out there, I should get into real estate 😂 you idiots would make me rich lmao.
@@glasshalfempty1984 your not throwing your money down the drain. You’re exchanging your money for a roof over your head. It’s not wasted money. It’s shelter for you and your family which is a necessity for human beings.
@@glasshalfempty1984 People Mindsets are changing it isn't "cool" or a "investment" to buy a home like it used to be especially to people 25 and younger people im 22 everyone around my age 25 and younger are thinking like this and now tbh 32-37 people(not celebrities) are slowly realizing Experiences and Memories over Money. to a lot of people it's just a emotional buy i think due to the pandemic now especially instead of 25 thinking like this its definitely increased to 32-36 yr olds else. but me personally i like the tax benefits over convenience. but when you actually know everything you have to do to buy a home including maintenance its a headache and i'm in position to buy a home saying this
What blows my mind is the cost to rent an apartment in my area. The avg rent for a 1 bed, 1 bath apt near me is roughly $1,500 per month ($1,800 if I want a 2nd room as a guest room or office). I can finance a townhome with 2 bed, 2 bath, and twice the square footage, and pay roughly the same after mortgage, tax, PMI, insurance, and HOA (and the building is likely to be much newer than the apt building). I'd love to hear from anyone reading what their thoughts are for pro's and con's here!
IMO renting is for broke people who want to stay broke. People who don’t have the discipline to wait save up a fat down payment are the same ones who don’t keep enough savings around for repairs, emergencies, etc to make sure their mortgage is covered, which compounds these issues as they have a higher payment as a portion of their income to start with. I also stopped taking this video serious when she said “budget 1% per month for repairs, equaling $5000 per month on a $500k home”. What??? Budget double the mortgage amount just for repairs? That is laughable!
My thoughts are it depends on the mindset of the person and how they want to live there life some people prefer and it has increased a lot actually due to the pandemic Experiences and Memories over Money. however, i also think people just need to have the foundational knowledge so whichever way they decide to go they will be okay...so those stories of people that waste there 20s build wealth in there 30s and chill in there 40s vs Build in your 20s,Enjoy/Waste your 30s,but chill in there 40s. obviously your always building cant work forever like its up to you i also think it needs to be rent cap across the board some people are paying up to 3,000 to maybe 4k a month in some states and that is insane i like the tax benefits against inflation over the convenience then if your tired upkeep just get rid of it
Concept 1: Your primary residence is a liability. Concept 2: Mortgage is still a rent to the bank. Concept 3: home ownership is the banks and government's dreams too.
I'm 27 years old and I don't want to buy a home. I feel like it is such a liability especially since I live abroad and may want to move in a few years again to another country. I desperately need more people thinking like this and this video is greatly appreciated. I get lots of pressure from my parents to save up and eventually buy a home. On the other hand they have a property on their hands they don't want to sell now due to sentimental reasons and say it will be part of my inheritance. Again I don't want to deal with all the work and responsibility involved in then selling that property especially when I no longer live in my home country. :( It is frustrating and I feel extremely anxious when this comes to my mind.
Im glad you found my video and the information helpful! It can be stressful to own a home and sell it, but you can also consider it a blessing to inherit something that had significant value. When the time comes you will rise to the occasion to do what needs to be done. Until then, keep doing what is right for you!
I own a primary home I paid $70k for in 9 years and beach condo on Marco Island I paid $260k cash. Even though both together are worth around one million and total living expenses of less than $2k a month it’s still a liability but it’s a home not investment so don’t care.
My house feels like the proverbial albatross around my neck. We have just never recovered from the housing market crash in 2008. The only thing that I will say is that I would be paying around the same amount if I were renting. But, life was far, far simpler as a renter!!!
Appreciate the video. Just a note, you can't compare your investment in a home with investing in the stock market or something else as mutually-exclusive. You have to compare your investment (I'd say your monthly mortgage + fees) with your RENT payment. If you buy a home and pay $1500 in mortgage + insurance/taxes after $3500 take-home pay, you have $2000 to spend on budgets/savings/investing. Should you choose to stay in your apt and pay $1500 in rent, those numbers don't change at all, you still only have $2000 left over. You don't suddenly have another $1500 to invest in stocks and build equity... that's still going straight to your landlord. My thoughts on this are around time value and fees. Interest rate on the mortgage, expected appreciation rate of the property, and effort (which you hit) are the biggest factors. Even still, a lot of these expenses can be tax-deductible. If the property isn't going to appreciate at least 4% y/y, or if you plan to move within 5 years, I'd say don't buy, or most importantly if you can stand roommates, don't buy. On the other hand, if it's a well-developed neighborhood, you're in a place to stay there, and you need space, it has potential to be a better investment than you're going to earn on any other passive source (passive meaning you don't need to monitor and shift your assets regularly, like futures/stocks).
I bought a house in a very small town just between two bigger towns in Europe where I grew up. I paid it out of pocket, it was cheap enough. It has all the amenities and enough for one person, plus a huge plot around, around 4000 square meters in total. It was the neighboring house just next to my parents’ house where I lived as a child. I bought it as a place to go to whenever I visit or even retire there. My parents help with the up-keeping as they can still do it. In the meantime I travel, live and work on different continents. I save what I can for retirement. This suits my lifestyle.
Great video. Good points for someone to consider. Would love to see the flip side of this video. 10 reasons why you should purchase a home. Then you would be giving both sides to that person who is considering home ownership.
Rent 1000 a month * 12 for a year = a lot of money in someone else bank account...what if your home gets paid off you owe know one for a place to live and that 1000 can be invested
The money you pay a month owning a home in that same time span is going to the bank not yourself so it’s pretty much the same principle. Most homeowners are not paying off their mortgages that quick either. Unless you have that much cash it’s a reason you purchased a home for a 30 year mortgage.
so excited for these videos about home buying! I'm currently only 19 but i'm currently savings with the intention of it going towards a house deposit in a few years - but I definitely want to educate myself more about the topic! I love your channel!
As a primary residence, it's almost always better to own your home...the perks are obvious and you can pay someone to handle the downsides. That only works IF you can afford it though--free time and money. The elephant in the room is that it's a lot more expensive for average people now than it was in recent generations for various reasons. If you can afford all the expenses, fees, maintenance with ease, no problem! Times have changed, and for many it's just not worth striving so hard to keep up with the idea of owning a home. If you must have one, start young, don't get into debt, live in a cheaper rural area where your job will always cover the bills, don't get divorced, don't move, work hard and save. Be content with less. You'll be much happier.
If you wouldn't otherwise invest your money, owning a home is better. But if you invest what would be your down payment and the monthly difference (saving) from renting instead of owning, renting is by far better financially.
Yes! I think lots of people fail to sit down and do the math. But then again... if you want to buy a house, buy a house! It’s gotta make sense for you like you said!
Owning a home is a luxury and not a financial decision as far I am concerned. The video creator does not compare a well-maintained owned house with the equal quality rental, and that renders her case useless. She HAD TO qualify that her analysis only applies to people who CANNOT afford either (well-maintained owned house or the equal quality rental). The high quality rental is prohibitively expensive, I know, I looked for one for years. Back in 1980s I was able to find one, not now. Most affordable rentals are dumps in areas where there are jobs.
Why don't you think it's an investment? I have a friend who bought a $240,000 home in 2019, and after one year it has appreciated in value to $260,000. If that's not an investment... I think people get hung up on "30 year mortgages". No one is telling you to drop 40% of your gross income into a 30 year loan, that's just irresponsible. I sometimes compare it to leasing vs buying a car. You could lease a brand new Cadillac for $800 a month over 36 months or buy a used one at $400 for 48 months. Make double payments, and you have an asset all to your name in 2/3 the time (except a home increases in value, unlike the car). With the Cadillac, you have nothing after 36 months... just memories of driving a fun car.
@@TheNooberd majority of ppl will say homes are the best investment because its the only investment they know. They have no clue about the stock market, options etc. Its also a forced savings account since most ppl are bad with money and have no savings besides their equity. You need a place to live at the end of the day but long term investing beats owning a home any day of the week.
I'd rather buy a vehicle instead of buying a home. I'm 31 years old and still won't buy a home because I don't won't pay out of pocket for something that breaks down in the home. I'd rather rent a home something single-family home or a multi-family home for rent
I prefer renting , but I have own a home, that were 100% burglarized and burned down, when I had to evict renters stealing, and not paying rent, saying it was stolen and some of my things. Renting overcharges you for everything. I can live cheaper in Acapulco.
I completely disagree. Although, you must be prepared financially to own a home. It's the best financial decision I have ever made. I currently own two homes. I'm selling one in which I will not 400K. I also live in an almost 2 million dollar home I purchased for 500k in NYC. I'm a millionaire on a teacher's salary as a result of my home ownership journey. The interest and taxes you pay on a hone loan are deductible. I don't want to get into the details of your video but, you're doing your audience a disservice with this video.
Home buying is founded on the banking system needing to sell citizens money. With the illusion that it’s a great investment long term (30 years of the bank getting interest from you lol) people never factor the actual costs , down payment “cash” that maybe you’ll see again doubtful, PMI if you don’t have down payment, mortgage points closing costs loan, earnest money etc. then it gets better interest you pay monthly for the time you have the loan sold as a savings account nonsense along with the write off lie. Plus you have to live to get these funds back along with return which typically isn’t the case. You only get back a lot of the time the monies you’ve already paid into the home plus all the headaches etc.
I hear you! Space and a backyard is probably very necessary with kids! But you can totally rent a home! Not that I’m recommending it... it’s definitely entirely up to you and your situation :)
Wander Wealthy by Tess Wicks when I lived in Texas the rental market is great but I live in a tourist destination now so rentals are insanely priced. What I pay montlhy in mortage, taxes and insurance monthly on my nice house would give me a nice 1 bdr or a crappy 2 bedroom Apt. So weird to me.
That’s why in Islam interest is haram (sin) and it makes more and more sense why it is when I watch videos like this. The rich gets richer with interest. There are a lot of suicides that comes with owning a home when the owner can’t pay anymore and he knows if he doesn’t make the next payments he’s doomed then he feels hopeless and that’s when the stress and depression and anxiety creeps in. Why would anyone want to just own something because society tells them to? Some people spend all their life working and being away from their families because they got a home they can’t afford. If COVID had taught us anything it’s you can’t grantee where your life will be in the next year, month, week or even day.
In general, stress = $$. To live stress-free, it will cost you money. So, buy home(smartly) and have little more stress and build your living estate faster. Rent, if you want to live with less stress but your living estate won't grow as fast. For me, 99.99999% buying home is worth it. Rent only if you are going to live in an area less then 3 to 5 years. Go to Zillow and go to any home and see its value over 10 to 20 years. I would say the majority of the home value has gone up over 30 to 50%. The best part is, if you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Now that's huge! Again, its personal choice. Rent = less stress, less responsibility, less money, Buy = more stress, more responsibility, and more money
It’s really no big deal to me. I just bought a home I could afford. Even though both are worth one million now it’s a liability. And it’s a home not an investment. I bought a 2bed/2.5bath/2car condo in gated upper middle class area and paid it off in 9 years. I paid cash on a beach condo on Marco Island in 2008. I also travel the world because of free global lifetime flight benefits from my career in aerospace. Been to over 57 countries so far so no big deal. Take off 3-4 month a year for travel and whatnot so not tied down. Also actually own an apartment rental in Rome I paid in cash create income. Still managed to saving,invest,and create a 20 year emergency fund including over 1.6 million retirement savings. All boils down to if you can’t afford it don’t buy. Living within means and staying out of debt. My total monthly expenses including tax,insurance,HOAs,and maintenance for both of my homes are less than $2k a month which is three days take home pay for me. Heck even the monthly rent income from apartment is more than this. Also avoided marriage and single mothers so by default I’m immune to divorce rape,weaponized child support,and the family courts which eliminated most financial issues. All about choices.
Sorry to hear that, but you gotta stick to your authentic self and i gotta stick to mine! 🤷♀️ Good luck on your journey and thanks for joining me thus far!
Wander Wealthy by Tess Wicks i wish it was possible to like this reply 10k times but i gotta say Wander this is the analysis i have been looking for . If you lost that sub, you gained one
I was a homeowner, now I rent and save a ton of money, zero stress, less space to clean. I can relocate without much of a hassle.
I've got news for you; you're not saving money, you're losing money. Let me help paint a clear picture; your landlord is making money off of you... And what do they own? THE HOUSE or apartment that you're in. It's nothing short of idiotic to suggest renting makes more financial sense than owning a home.
@@glasshalfempty1984 it’s nothing short of idiotic to claim your house is an investment. It’s a massive liability. Second you don’t own nothing , you make payments on it until you die. Third the hundreds of thousands of dollars you put into to make repairs renovations etc etc. Fourth , you can make investments on yourself for the next 30 years and build massive wealth. But most people like you, who fall into the banking system trap that suck you dry with all the interest payments causing housing prices to rise for each generations unable to afford anything for the same foundation bricked house.
And the worst of them all, you spend your whole life worrying about the dam house. That’s all these people do, keeping them stressed out there life worrying about a house with walls , and your not gonna take your house with you when you die. You’ll be buried with nothing left. That’s the reality.
@@glasshalfempty1984 I'm renting and slowly building wealth, which I know I cannot do anymore if I get a housing mortgage, It is easy to buy a house in cash once you already accumulated stable sources of income. Too much pressure seeing all these people that think getting a house mortgage is the best achievement. They are so proud of having a mortgage, it's dumb. I am renting and yet I have more savings and investments than my friends who get a house mortgage.
Good for you!
@@glasshalfempty1984 I do not care if my landlord is making money. I have so much less stress.
I've crunched the numbers over & over and ownership is not making a lot sense for me. Thank you for this video!
I'm renting and have more savings than my friend who bought a ( loan ) a house. Social media is putting a lot of pressure on these matter that's why I stopped facebook.
Home ownership seems overrated. Lots of headaches come with owning a home.
I’ll take home ownership over divorce rape, weaponized child support, and the family courts any day.
Ownership without financial independence is a liability and fan be a real nightmare. Been there, done it, never will own again until I am so FI i dont have to work.
This was SOOOO helpful you have no idea. I feel immense pressure to buy a home at 27 when I’m not ready just because renting is “throwing money away” and the “American dream”
Renting is not throwing money away regardless of what people tell you. It provides a place to live. Only buy property when you are absolutely ready to do so. There's nothing wrong with being a permanent renter as long as you are simultaneously investing.
Good thorough analysis. I'd like to add something a bit niche. Buying a home locks you into HAVING TO earn pretty good money, for a very long period of time. You may have a completely different idea about how you want to live your life. You may find it difficult to find a job doing something you enjoy and believe in. Putting yourself in debt may lock you into a miserable existence, set you on the path to live a life of major compromises and an identity crisis. For a lot of people money is not the most or certainly not the only important factor when it comes to choosing a job or profession.
While you're without debt, you are free to explore what you want to do with your life, change your priorities, keep searching for answers to your big questions, and if you can't find a happy way to make decent money, then sleep in your car even, or move to the bush and live off the land.
The 3rd Coat excellent point, I’m discovering as I mature, that quality of inner life is most valuable asset
Love love LOVE this comment! So true
@@nflfangirl19 glad you found it useful 😁. All the best!
Thanks for the info, I’m 47 female and am renting for 650/mth and am building my investment portfolio and not planning on buying a home (unless I can pay cash)
Also what is the cost of freedom?! Mortgage=death pledge
I have 3 (almost 4) kids, and I actually agree with this. I love to rent (I know, crazy, but Portland, Oregon’s market is ridiculous) and I have no issues with kids in rentals. Carpets are immaculate, I clean it too to bottom minimum weekly and it’s a great way to save a lot of money. I personally am saving to put 50% down on a home (sounds nuts) but I’m not paying a crap ton of interest on a property I may or may not get the return on. Hopefully I can pay all cash,. Loved the video, Tess!
Woo hoo! Thanks for watching Lisa!
Have to be able to afford a home.
So true, for the past few months, I was so stuck on buying a home but now I prefer a tiny home on wheels or not. Just something simple without the commitment .
Thanks for this video! I'm in my way 30s and feeling the pressure of the "shoulds." I'm also currently the roommate of a dear friend who bought her first house 6 months ago. Watching her settle into the new role of homeowner has been very educational. I'm the one who is home more! This spring has been interesting to watch her navigate the house projects: getting a lawn mower, taking out the storm windows, etc while also balancing her normally free weekends. I pitch in ( I was sweeping and mopping our kitchen while listening to the video and had my dad come over to rotatil our garden 3 weeks ago) but I also know the various house owning are ultimately not my problem. A great perk of renting.
Yes! Those first couple years of homeownership can be a real shocked - so many things come up that you don't ever have to think of while being a renter. You're getting a crash course without the cost/risk! :)
Thanks I love this. I recently felt the pressure of buying a home through my peers. I am only 25 with no kids and have plenty of time for this!
I'm glad you found it helpful! Thanks for watching!
Not really time goes by real fast especially after 25
Save your money! Travel, start a business etc
I recently just bought a house and renting the room. At first, it was so stressful but once I get into the flow. It become a habit
I think it’s case by case basis. I don’t like renting and here’s my list
1. Neighbors were too loud. I could hear everything
2. Rent kept going up every year
3. Apartments or townhomes are only so big,anything that’s nice and more sq feet will cost you as much as a mortgage
4. You can’t file taxes on your rental
5. If you want a garage you have to pay extra.
6. Did I mention the noise factor????
7. Most if not all apartments don’t report to the 3 major credit bureaus
8. I do agree if you’re not financially able to purchase a home YOU SHOULDN’T
9. You can’t take out a home mortgage loan on a rental
10. I respect your views but I strongly disagree. I took out a home mortgage loan and used the money to pay off other bills and financed two businesses. A janitorial business and towing business. I think most people that aren’t financially responsible or disciplined to be a homeowner shouldn’t try to buy a home just yet.I would suggest building new than pre existing so there’s a warranty ect ect. My new home experience wasn’t the nightmare that you speak of. My home has opened many many doors for my family and I but I used my home to help me make other investments. If you’re afraid to take a chance then you’ll never make any advances in life but everything is a gamble. Investing in the stock market or accepting a high paying job in another state. The stock market can crash and you can lose your job for any reason.
I totally agree with you 100%. If you are not financially responsible, you shouldn't buy a house yet. I have been Renting for 15 years when i do the match i realized that i could have been done paying my mortgage by now. It is money throwing away becuase the apartment was never yours in the first place. I think you should probably start renting for a start to get your stuff together ( finance) then buy a house. I am in the process of buying a house and i am not looking back again.
Great points that many people do not think of when promoting home ownership. My husband and I own our home outright. We paid the mortgage off very early, several years ago. I thought after we paid the mortgage off, we would have so much more disposable income. It did not make as much of a difference as I had hoped. Yes, we saved a lot on interest by paying off our mortgage early. But with property taxes, homeowner's insurance, utilities and upkeep, it still costs us quite a bit every month to live in our modest home. The total may be less than rent for a comparable space, but with rent there is so much convenience as you mentioned. Convenience has value, too.
Totally agree! I've determined that a lot of it just comes down to lifestyle preference! I don't think either one is better, just hope i can provide some clarity and insight that i lacked when buying my home!
I agree it is a choice we each have to make depending on lifestyle/ personal preference. Just glad to see such a detailed and reasoned argument against the common "wisdom."
Yes! I don't plan on ever buying again, even though I could afford to. Renting is much simpler and less stress :)
So you have owned in the past? I agree. I learned a hard lesson within my first month as a homeowner! Definitely less stressful!
Simpler? Yes. Less stress? Maybe. Smarter? No. You're throwing your money down the drain. Good Lord... With so many people like you out there, I should get into real estate 😂 you idiots would make me rich lmao.
@@glasshalfempty1984 your not throwing your money down the drain. You’re exchanging your money for a roof over your head. It’s not wasted money. It’s shelter for you and your family which is a necessity for human beings.
@@glasshalfempty1984 People Mindsets are changing it isn't "cool" or a "investment" to buy a home like it used to be especially to people 25 and younger people im 22 everyone around my age 25 and younger are thinking like this and now tbh 32-37 people(not celebrities) are slowly realizing Experiences and Memories over Money. to a lot of people it's just a emotional buy i think due to the pandemic now especially instead of 25 thinking like this its definitely increased to 32-36 yr olds else. but me personally i like the tax benefits over convenience. but when you actually know everything you have to do to buy a home including maintenance its a headache and i'm in position to buy a home saying this
@@glasshalfempty1984 After paying interest for up to 30 years, no you are not saving money.
What blows my mind is the cost to rent an apartment in my area. The avg rent for a 1 bed, 1 bath apt near me is roughly $1,500 per month ($1,800 if I want a 2nd room as a guest room or office). I can finance a townhome with 2 bed, 2 bath, and twice the square footage, and pay roughly the same after mortgage, tax, PMI, insurance, and HOA (and the building is likely to be much newer than the apt building). I'd love to hear from anyone reading what their thoughts are for pro's and con's here!
IMO renting is for broke people who want to stay broke. People who don’t have the discipline to wait save up a fat down payment are the same ones who don’t keep enough savings around for repairs, emergencies, etc to make sure their mortgage is covered, which compounds these issues as they have a higher payment as a portion of their income to start with. I also stopped taking this video serious when she said “budget 1% per month for repairs, equaling $5000 per month on a $500k home”. What??? Budget double the mortgage amount just for repairs? That is laughable!
My thoughts are it depends on the mindset of the person and how they want to live there life some people prefer and it has increased a lot actually due to the pandemic Experiences and Memories over Money. however, i also think people just need to have the foundational knowledge so whichever way they decide to go they will be okay...so those stories of people that waste there 20s build wealth in there 30s and chill in there 40s vs Build in your 20s,Enjoy/Waste your 30s,but chill in there 40s. obviously your always building cant work forever like its up to you i also think it needs to be rent cap across the board some people are paying up to 3,000 to maybe 4k a month in some states and that is insane i like the tax benefits against inflation over the convenience then if your tired upkeep just get rid of it
Concept 1: Your primary residence is a liability.
Concept 2: Mortgage is still a rent to the bank.
Concept 3: home ownership is the banks and government's dreams too.
Renters pay for the Landlord's mortgage so #2 and #3 are mute
@Robocop there's a lot of ways to look at it. So as long as you are financially irresponsible, there is no wrong way
I'm 27 years old and I don't want to buy a home. I feel like it is such a liability especially since I live abroad and may want to move in a few years again to another country. I desperately need more people thinking like this and this video is greatly appreciated. I get lots of pressure from my parents to save up and eventually buy a home. On the other hand they have a property on their hands they don't want to sell now due to sentimental reasons and say it will be part of my inheritance. Again I don't want to deal with all the work and responsibility involved in then selling that property especially when I no longer live in my home country. :( It is frustrating and I feel extremely anxious when this comes to my mind.
Im glad you found my video and the information helpful! It can be stressful to own a home and sell it, but you can also consider it a blessing to inherit something that had significant value. When the time comes you will rise to the occasion to do what needs to be done. Until then, keep doing what is right for you!
There is no point in stressing about buying property if you are just going to inherit one.
I own a primary home I paid $70k for in 9 years and beach condo on Marco Island I paid $260k cash.
Even though both together are worth around one million and total living expenses of less than $2k a month it’s still a liability but it’s a home not investment so don’t care.
My house feels like the proverbial albatross around my neck. We have just never recovered from the housing market crash in 2008. The only thing that I will say is that I would be paying around the same amount if I were renting. But, life was far, far simpler as a renter!!!
Appreciate the video. Just a note, you can't compare your investment in a home with investing in the stock market or something else as mutually-exclusive. You have to compare your investment (I'd say your monthly mortgage + fees) with your RENT payment. If you buy a home and pay $1500 in mortgage + insurance/taxes after $3500 take-home pay, you have $2000 to spend on budgets/savings/investing. Should you choose to stay in your apt and pay $1500 in rent, those numbers don't change at all, you still only have $2000 left over. You don't suddenly have another $1500 to invest in stocks and build equity... that's still going straight to your landlord.
My thoughts on this are around time value and fees. Interest rate on the mortgage, expected appreciation rate of the property, and effort (which you hit) are the biggest factors. Even still, a lot of these expenses can be tax-deductible. If the property isn't going to appreciate at least 4% y/y, or if you plan to move within 5 years, I'd say don't buy, or most importantly if you can stand roommates, don't buy. On the other hand, if it's a well-developed neighborhood, you're in a place to stay there, and you need space, it has potential to be a better investment than you're going to earn on any other passive source (passive meaning you don't need to monitor and shift your assets regularly, like futures/stocks).
I bought a house in a very small town just between two bigger towns in Europe where I grew up. I paid it out of pocket, it was cheap enough. It has all the amenities and enough for one person, plus a huge plot around, around 4000 square meters in total. It was the neighboring house just next to my parents’ house where I lived as a child. I bought it as a place to go to whenever I visit or even retire there. My parents help with the up-keeping as they can still do it. In the meantime I travel, live and work on different continents. I save what I can for retirement. This suits my lifestyle.
Great video. Good points for someone to consider. Would love to see the flip side of this video. 10 reasons why you should purchase a home. Then you would be giving both sides to that person who is considering home ownership.
I'll add it to the list! :)
I agree with you%100.
Rent 1000 a month * 12 for a year = a lot of money in someone else bank account...what if your home gets paid off you owe know one for a place to live and that 1000 can be invested
The money you pay a month owning a home in that same time span is going to the bank not yourself so it’s pretty much the same principle. Most homeowners are not paying off their mortgages that quick either. Unless you have that much cash it’s a reason you purchased a home for a 30 year mortgage.
I live in California. Renting is not cheaper.
so excited for these videos about home buying! I'm currently only 19 but i'm currently savings with the intention of it going towards a house deposit in a few years - but I definitely want to educate myself more about the topic! I love your channel!
Thanks for watching Jess! Way to go for being so proactive with your finances!!!
As a primary residence, it's almost always better to own your home...the perks are obvious and you can pay someone to handle the downsides.
That only works IF you can afford it though--free time and money.
The elephant in the room is that it's a lot more expensive for average people now than it was in recent generations for various reasons.
If you can afford all the expenses, fees, maintenance with ease, no problem!
Times have changed, and for many it's just not worth striving so hard to keep up with the idea of owning a home.
If you must have one, start young, don't get into debt, live in a cheaper rural area where your job will always cover the bills, don't get divorced, don't move, work hard and save.
Be content with less. You'll be much happier.
Oh damn ! This sure a great detail video.
Thanks for sharing .
Thanks for watching as always Michael!
Great Video! Enjoyed listening to your viewpoints!
If you wouldn't otherwise invest your money, owning a home is better. But if you invest what would be your down payment and the monthly difference (saving) from renting instead of owning, renting is by far better financially.
Even if I had kids, I'm not buying anymore. Please pray for me that I get a buyer within a month. 🙏😄
Thanks for sharing.it makes a lot of sense now.
Thanks this is helpful 👍 😊
I am so with you! For me, for now, it just doesn't make sense
Yes! I think lots of people fail to sit down and do the math. But then again... if you want to buy a house, buy a house! It’s gotta make sense for you like you said!
Owning a home is a luxury and not a financial decision as far I am concerned. The video creator does not compare a well-maintained owned house with the equal quality rental, and that renders her case useless. She HAD TO qualify that her analysis only applies to people who CANNOT afford either (well-maintained owned house or the equal quality rental). The high quality rental is prohibitively expensive, I know, I looked for one for years. Back in 1980s I was able to find one, not now. Most affordable rentals are dumps in areas where there are jobs.
thanks for sharing
I love this! It’s so true people put so much pressure on buying a house!
Glad you liked it! :))
Owning a home is like getting a degree = slavery 😄😄😄
My parents are putting pressure on me to buy instead of renting.
How much is closing cost please don't give me a percentage
3:34 Reason #1
I screened you, watching the second video, I watched the entire video, I like you, I’m subscribing. Cheers! 😉
Thanks!
I laugh inside when people say it's a investment!
Yes when you paid it off and rent it out
Like me
Why don't you think it's an investment? I have a friend who bought a $240,000 home in 2019, and after one year it has appreciated in value to $260,000. If that's not an investment... I think people get hung up on "30 year mortgages". No one is telling you to drop 40% of your gross income into a 30 year loan, that's just irresponsible. I sometimes compare it to leasing vs buying a car. You could lease a brand new Cadillac for $800 a month over 36 months or buy a used one at $400 for 48 months. Make double payments, and you have an asset all to your name in 2/3 the time (except a home increases in value, unlike the car). With the Cadillac, you have nothing after 36 months... just memories of driving a fun car.
@@TheNooberd majority of ppl will say homes are the best investment because its the only investment they know. They have no clue about the stock market, options etc. Its also a forced savings account since most ppl are bad with money and have no savings besides their equity. You need a place to live at the end of the day but long term investing beats owning a home any day of the week.
Only when you pay it off and move to a cheaper house is it an investment.
I'd rather buy a vehicle instead of buying a home. I'm 31 years old and still won't buy a home because I don't won't pay out of pocket for something that breaks down in the home. I'd rather rent a home something single-family home or a multi-family home for rent
We already paying money monthly for rent. If i cannot pay then i will be on street. So why pay for home that be mine finally
Exactly Right
my thoughts and more....good video
Thank you!!
I prefer renting , but I have own a home, that were 100% burglarized and burned down, when I had to evict renters stealing, and not paying rent, saying it was stolen and some of my things.
Renting overcharges you for everything. I can live cheaper in Acapulco.
Being house poor sucks!
It works out better for me to rent.
Amen to that !!!!!
I completely disagree. Although, you must be prepared financially to own a home. It's the best financial decision I have ever made. I currently own two homes. I'm selling one in which I will not 400K. I also live in an almost 2 million dollar home I purchased for 500k in NYC. I'm a millionaire on a teacher's salary as a result of my home ownership journey. The interest and taxes you pay on a hone loan are deductible. I don't want to get into the details of your video but, you're doing your audience a disservice with this video.
You said all that to say, you own a home 😴
First and foremost I love your channel and love your content. I completely disagree with your assessment on buying a home.
It does have pros and cons. You must consider it all
Home buying is founded on the banking system needing to sell citizens money. With the illusion that it’s a great investment long term (30 years of the bank getting interest from you lol) people never factor the actual costs , down payment “cash” that maybe you’ll see again doubtful, PMI if you don’t have down payment, mortgage points closing costs loan, earnest money etc. then it gets better interest you pay monthly for the time you have the loan sold as a savings account nonsense along with the write off lie. Plus you have to live to get these funds back along with return which typically isn’t the case. You only get back a lot of the time the monies you’ve already paid into the home plus all the headaches etc.
Totally get it but no way am I renting with kids. Especially an apartment. Kill me know haha
I hear you! Space and a backyard is probably very necessary with kids! But you can totally rent a home! Not that I’m recommending it... it’s definitely entirely up to you and your situation :)
Wander Wealthy by Tess Wicks when I lived in Texas the rental market is great but I live in a tourist destination now so rentals are insanely priced. What I pay montlhy in mortage, taxes and insurance monthly on my nice house would give me a nice 1 bdr or a crappy 2 bedroom Apt. So weird to me.
Yes the market (for both renting and buying) can really determine whether it's worth it or not!!
Too late 😂 also we already paid it off....
That's awesome!!
Me too
That’s why in Islam interest is haram (sin) and it makes more and more sense why it is when I watch videos like this. The rich gets richer with interest. There are a lot of suicides that comes with owning a home when the owner can’t pay anymore and he knows if he doesn’t make the next payments he’s doomed then he feels hopeless and that’s when the stress and depression and anxiety creeps in. Why would anyone want to just own something because society tells them to? Some people spend all their life working and being away from their families because they got a home they can’t afford. If COVID had taught us anything it’s you can’t grantee where your life will be in the next year, month, week or even day.
In general, stress = $$. To live stress-free, it will cost you money. So, buy home(smartly) and have little more stress and build your living estate faster. Rent, if you want to live with less stress but your living estate won't grow as fast. For me, 99.99999% buying home is worth it. Rent only if you are going to live in an area less then 3 to 5 years. Go to Zillow and go to any home and see its value over 10 to 20 years. I would say the majority of the home value has gone up over 30 to 50%. The best part is, if you have a capital gain from the sale of your main home, you may qualify to exclude up to $250,000 of that gain from your income, or up to $500,000 of that gain if you file a joint return with your spouse. Now that's huge!
Again, its personal choice. Rent = less stress, less responsibility, less money, Buy = more stress, more responsibility, and more money
Are you single Tess?
Blonde moments all I can say
It’s really no big deal to me.
I just bought a home I could afford.
Even though both are worth one million now it’s a liability.
And it’s a home not an investment.
I bought a 2bed/2.5bath/2car condo in gated upper middle class area and paid it off in 9 years.
I paid cash on a beach condo on Marco Island in 2008.
I also travel the world because of free global lifetime flight benefits from my career in aerospace.
Been to over 57 countries so far so no big deal. Take off 3-4 month a year for travel and whatnot so not tied down.
Also actually own an apartment rental in Rome I paid in cash create income.
Still managed to saving,invest,and create a 20 year emergency fund including over 1.6 million retirement savings.
All boils down to if you can’t afford it don’t buy.
Living within means and staying out of debt.
My total monthly expenses including tax,insurance,HOAs,and maintenance for both of my homes are less than $2k a month which is three days take home pay for me.
Heck even the monthly rent income from apartment is more than this.
Also avoided marriage and single mothers so by default I’m immune to divorce rape,weaponized child support,and the family courts which eliminated most financial issues.
All about choices.
Have to unsubscribe because of certain curse words used in the video.
Sorry to hear that, but you gotta stick to your authentic self and i gotta stick to mine! 🤷♀️ Good luck on your journey and thanks for joining me thus far!
Wander Wealthy by Tess Wicks i wish it was possible to like this reply 10k times but i gotta say Wander this is the analysis i have been looking for . If you lost that sub, you gained one