-Set up a trust in minutes (Enjoy the benefits of privacy and placing your property in a trust today) - Use code GRAHAM For 10% Off: - www.getdynasty.com/?linkId=lp_565170&sourceId=graham-stephan&tenantId=getdynasty -Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further - enjoy! docs.google.com/spreadsheets/d/1Os8ZBu2o0KgXAJOpgFmqWCxF271wiCHQRJCW_d_vNTU/edit?usp=sharing
Hilder allows you to express your fears and she still rests your fears and that is my respect. I don't normally comment on videos, but this word should be included. she is really cool.
Graham what are the rules for the trust as I was told if I placed a home that has a mortgage in a trust the bank can call the loan can you verify this please and thank you.
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
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.
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 years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Let's get this straight.. the government printed loads of money in 2020 which was followed by rising cost of living and housing prices. Then they raised interest rates to "fight inflation" making it even more unaffordable to buy homes. Now they're proposing to give more handouts to home buyers taken from tax payers and additional money printing.
As a single person in their mid 20s, owning a home without throwing myself into lifelong debt seems practically impossible. I've done what I was told: I did well in school and graduated with a STEM degree, but still graduated with $80k in debt. I have a good job and live well within my means, contribute to a roth IRA, paid off my car, make sizable payments towards my loan and very rarely go out. I've done everything I'm supposed to; so why does something like owning a home seem so far out of reach? Even if I save absolutely everything outside of required expenses, it'll take YEARS to save for a down payment on a home.
This is so real. As someone lucky to be able to afford buying a house right now at 30, it's only because I lived frugally with roommates for years to save to make it feasible with a decent paying job from a college degree. I'm was lucky to not have a large amount of loan debt from school that is paid off now. Even with all that, I feel like it's hard to find a decent home I can reasonably afford right now with a large down payment. I have no idea how anyone who isn't debt free and doesn't have a good paying job could afford it on a single income, it's impossible. You either need a significant other or roommates to afford a house right now and even then it's probably rough...
Property tax for residential land is insane to me. you work your whole life to afford a down payment for a 20-30 year loan. and even after you pay all that off you owe the state tens of thousands a year in perpetuity. why do we put up with this?!?!?
@@ComplicatedLADYcom__Blog in some cases if you cannot afford to stay it might be best to move or downsize. Everyone here wants the biggest houses and fancy cars. Then complains about the higher costs.
@galupproperties3098 except that there is litteraly no way to predict what property tax will be 30 years from now because it's an artificial cost imposed by the state
One day soon, this bubble of pure greed is going to burst. Sellers are being greedy (and have no other choice but to sell high) realtors are lying,and the gov doesn't care... life's gonna balance all of this out... watch.
Watching RUclipsrs doesn’t make you financially sound. They’re humans just like us. Better pull up those charts and pick up those books and get to work.
@@RJTradess No, like I said he made my interest in finance. He sparked it, began it, made it. He did not make me financially literate I never said that.
Housing is insane. Where we live we make too much to qualify for any of these programs, but make no where near to purchase a home even with 20% down unless we want to be house poor.
That's the idea, they are making it so only people who definitely can't afford a house are the only people buying, they set the trap, they will pull the trigger after next election and liquidate everyone
Who is “them” and handouts why do you people always behave like you are so honest and on top of it when your legacy is riddle with dishonesty handouts and stealing
@@ursulamoon9567 I was meaning "them" as the government giving handouts to the people of the United States without fixing any of the real problems. They print extra money to inflate the already volatile economy As for my personal legacy, it is not riddled with handouts, dishonesty and stealing. I cannot change anything that has happened in the past, nor can I control what anyone does with their legacy. I can only control what I do and what my legacy looks like in the future so please don't group me in with a group of people who have done horrible things in the past based, on what I look like. I can respect your opinion, but you don't know me at all.
I’m a home builder in Florida and you are absolutely correct. There’s not enough profit in moderate to small houses for it to be worth the risk. And building houses is generally a high risk endeavor. Everything is about money in relation to risk. You’re spot on Graham, if home builders had less risk or more incentives we would build more starter homes.
Yes, I’m not clear on how building a small home is a risk? Especially in Florida, with a major housing supply issue, it seems like you could easily sell the house. The risk would be on the bank making the mortgage loan to your buyer.
This whitehouse is objectively insane. Screw politics, think rationally - this will obviously drive up asset costs rewarding those that already hold them further screwing the younger generation under the guise of "help". Lesson, whenever the government says they're helping, or a bill is worded as such, it is ALWAYS the opposite. 100% hit rate.
I agree with your ending statement. You need to incentivize low income and starter housing of any kind. House, condo, apartments, tiny homes, whatever. But it has to make sense to the developers before they are willing to build it. You can’t ask a company to go out of business because you need more housing. Help them, they will build more. It’s that simple.
We don’t need more starter homes. There are already loads of tract homes builder grade everywhere and giving more incentives to build blight won’t fix anything. Building more premium housing and allowing people to move into that frees up all of the homes those people are already in. One of the things we need most is quality housing for gen x empty nesters to downsize into. Because there is no quality small housing for these empty nesters they stay in homes way too large for them.
Nothing brings down prices quite like pumping even more Monopoly money into a low supply market. I’ve said over and over again that we need to teach basic economics in schools but we might actually need to begin with DC and our government officials
i'm in CA in the Ventura area, combined my GF and i gross around 120k, we have enough for 20% down on any house we would like but with the average house between 650k-800k its not realistic for us to afford the mortgage. gotta love it.
Back when I was buying a house throwing down 8k with a conventional mortgage was a zillion times easier than applying for an FHA type mortgage riddled with fees and terms after the fact. It made my bid on the house more competitive as well. They should be incentivizing more building of smaller single family homes like what habitat for humanity builds.
this could be really nice for us, me and my wife got a starter home and are wanting to move in the next five years. we don't feel comfortable starting a family in the neighborhood we are in now, to many homeless and other factors are always around. If this passes it would make affording the change so much easier.
A federal bill gives you benefits only if your parents didn't own or messed up on their home? Glad we're bringing back blood debt under a different name: a blood BENEFIT!
I know this is ridiculous just because parents are already in the market doesn't affect the fact that young people aren't so the parent owning is ridiculous.
Where I live - the government came and said, "we are here to help" they pay part of the interests for first time home buyers. That caused 20% raise in housing price but 20% drop in rental prices. As an owner of mortgage free rental units... I don't know if to laugh or cry. Thinking about selling them and have cash for few months.
Yep, I completely agree that being able to take our current interest rate and tax-basis with us would immediately incentivize us to move. My wife and I have been at our home since 2011 and we have a really low interest rate as well as tax-basis. Even though we make well over twice as much as we did when we first moved here, we feel trapped because the interest and tax rates drive the monthly payments up to ridiculous levels. The houses we could justify wouldn't be that much of an upgrade and our monthly payments would nearly triple. It's pretty frustrating to get to the point that you're making solid money for your area, but still feel like it would be a horrible financial decision to buy literally anything on the market that would be a modest upgrade for us. Thanks for all of the great videos!
Isnt it carzy how I am watching a video by a Grahan and he will be reading this comment in his own world while I'm writing it in my own. Maybe our lives will never cross again.
Pretty much the only people selling are those that are: - Retiring and finding a cheaper house out of the city - people who must for a new job (Okay that didn’t need a list)
Real estate is just fkin INSANE right now. My dad sold his 57 acre ranch in Texas in 2017 for $347k, they just listed last weekend (03/20/24) and it’s at $1.8M. Doesn’t mean they’ll get it, but even if they took $1.4…. That’s just insane
We got $0 down and got all of our closing costs paid for in seller credits and got a 2k check in the mail. Our mortgage lender got us this by helping us buy in a specific zip code with certain demographics. We love it in our neighborhood!
I love your solutions and I agree hundred percent that people will start buying and selling homes again and the market will become healthy again, but the cronies and government colluding with the banks will never let something like that happen. That’s too much help for the American people and they can give a damn about our benefit.
Graham is speaking the truth here. I like how he does a deep dive on how it plays out. More often than not most people fall for the headline and marketing without truly understanding the devil in the details.
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There is not enough housing period. A mixture of shortage of home builders, long processes in city and state regulations, and the low interests price explosion in 2020-2021. Im glad I sold my home for a profit and then turned around and purchased a bigger one in a better neighborhood.
I think a huge issue with the lack of housing is big investment companies quite literally attacking certain markets and forcing people to rent because they own so many houses in that market
This sounds the same as what is in Australia. I think the solution is to incentivize builders and increase the supply dramatically so this reduces house prices.
We use our military to build housing in other countries, but for some reason we refuse to even try to help our own here is just criminal! This just seems like a perfect scenario, where government should step in and build housing that the private market refuses to solve. We have an entire country's amount of people sleeping on the streets. It's just gross negligence!
Any government intervention to improve affordability on the buy side is only going to heat up the market. It needs to be done on the supply side through increased homebuilding. The only way to feasibly increase affordability on the buy side is to incentivize NOT buying a home (e.g. treating the housing market like a carpool lane; give people some kind of benefit for living together rather than getting their own place).
All the “convenience” fees should be illegal in bill pay. If I don’t use this specific service to pay my bill a lot of times there are no other options available especially with rent!! This country is so blind corrupt and incompetent
Anytime the government intervenes there's always unintended consequences. As Thomas Sowell or Milton Friedman said, "There's no solutions only trade offs" (rough paraphrase)
I just bought a new house, but was sold to me lower than what they paid in 2008. Needs work, but a lot of room for equity. You can wait out rates, you can't wait out a good deal. Lower rates, higher competition. 👌
This is the best video I've seen on this topic. You put in the effort and it shows. Nailed it on the solutions, I've been racking my brain on what the fix would be for this problem. This makes so much sense to me.
How is anyone going to be able to afford the payment with zero down, let alone the homes are over priced. All this will do allow these big corporations to make big profits selling these over priced homes, they will not sustain any losses, instead of homes going down!
The $10k tax credit does nothing to make houses more affordable. It is almost like student loans where colleges raise tuition prices because everyone has access to the money the government is handing out. What needs to happen is more supply needs to be created such as building it or restricting how many houses a person/company can own. Having almost every house be a single family house doesn't help with affordability. Need to do some city rezoning.
@RJWaynerium They can want the single family home but unfortunately they are not available or people are priced out. I'm sure people would prefer to get a townhouse in the interim instead of continuing renting.
On top of insane house prices. Something else that is contributing to unaffordable housing are the insane HOA's... And it seems like all new developments have them now. That's just what everyone needs when they are struggling to get an affordable house price from a bank, then an organization that does next to nothing for you decides to tack on an extra $300-$500 monthly fee! It's the worst!
Rates will go down. And there are many lenders offering no lender cost refinancing. Also buyers can assume the rate on government loans if the seller has a government loan. I'm a realtor in AZ if anyone wants help! 18 years prior mortgage lending experience under my belt!
@zildian1983 You can assume the rates but the challenge seems to be that sellers want the buyers to take out a 2nd loan or pay cash to pay the difference between their loan balance and the asking price. The amounts I've seen so far make it impossible to do those deals unless you have 30-50% cash.
It’s just crazy the government doesn’t think of the unintended consequences. Or, “conspiracy theory” they do and all of the “unintended consequences” just happen to help them.
My husband and I are struggling to find our first house because it's so unaffordable where we live. We just got married in October. We wanted to move out by this summer as our lease is up in June, but at this rate, we're probably going to be in our apartment for a 5th year 😭
@GrahamStephan It's sad, and we make at least $150k a year combined. Even when we do renew, it'll go up again. There's never a good option. Thanks for always being so realistic about the market and and how it's almost unaffordable for millenials and first-time home buyers.
Some new builders are offering 20k incentives for first time homebuyers to buy points to reduced interest rate. It covers closing cost and buy points. I think is a great incentive.
The dream for all program is amazing. Wish they had that in Utah. There's a DP program in Utah where they'll give you 25k but has to be a new build over 450k. That still makes the home unaffordable with the high interest rates.
Excellent final rundown of 4-5 adjustments to current legal/industry standards re: loan rollovers, capital gains waiverss, etc. One more item we should add-particularly for anti-business states such as CA: remove the (already ponderous and ever-increasing) discriminatory regulations targeting landlords, who are treated less kindly than someone farting audibly in a stalled elevator by state/local officials. Until landlords are afforded legal rights comparable to other businessmen, NO ONE will be interested in leasing domiciles in $hitholes such as LA or San Fran
Banning megacorps / groups like Black Rock from buying houses wouls help a lot. Then prioritizing citizens / legal residents to buy houses. Low(ish) taxes on 1st home (primary home) medium to high taxes on secondary home, and ridiculously high taxes +3rd home.
@GrahamStephan I get helping people but, help your country the military is literally giving tossing money at people. Just sad... how the government is going to hurt the economy.
As a first time homebuyer in 2022, I opted for a condo. I recommend all first timers do the same to get a start in building equity. I put 10% down, and my 2br1bth has already appreciated around 10%.
Oh i don't think I'll ever sell. I briefly thought about it, but Im just too emotionally attracted to my house. Also the housing market here is crazy with low supply and everyone else has tiny lot sizes. Not worth it.
There is a fee charged every time a credit card is used. The end user will always pay for it one way or another. It costs money to process checks and cash also.
Downpayment assistance programs are ridiculously complicated to deal with. Im in Texas and we have the NACA program. There is no follow through with it. You have to keep all your records on standby at any given moment for a 6mth to year and cant be a day late on any payments of anything the entire time. Its definitely not easy. And you really really have to want it to make it work.
For any first time home buyer I’d wait for things to drastically change/hit the floor let them make the best changes they will give citizens and then once drastic change happens you will have better opportunities for your $
The state already has multiple incentives for prices never to go down, most of them tied to assessing property values, school zoning, etc. Heavens forbid we detach school funding from property values, someone without rich parents would be allowed to succeed… Gov is benefiting from this bubble the same way landlords are, if not more.
Graham that’s the best thing about Florida save hour homes we can transfer our low tax savings to the new more expensive home and it’s called portability
So, we are just recovering from a lumber shortage during the pandemic which sent lumber prices through the roof. When they give out all of these incentives to build homes, is that not going to put a huge strain on our material supply and in turn raise home prices even more?
I Agree on the last part of the video as a better solution… but as a very good friend of my used to say… “They Are Way Too Many Hands In That Cookie Jar” I don’t see that happening but I had to say it is a very nice idea!
My son has a 2.5 interest rate bought the house in 2021. Now he has decided it is way too big and too far out and needs too many updates. He wants to sell but can't. If he could take that interest rate with him, he would sell tomorrow!!!
I'm in the process of buying a starter home and this is both music to my ears and incredibly concerning with the state of the housing market and where it's going. Thanks for the vid graham
To your point at 13:25, it seems like in SoCal at least there were a ton of starter home suburbs being built from the 70's thru early 00's. Why is it that the developers during this time felt like it was worth it to build this way, and why did that change?
On the point of convenience fees, I currently pay $80 for a flat fee for the property manager to pay city services that used to cost me $40 when I paid them directly.
I own 13 properties in Japan but, I am feeling the competition here in Japan. It's still cheap and afforbable...but prices have been going up steadily. Not sure if you remember me commenting all those years ago! I remembering commenting when you had like 50K subs. I just started my channel last year on RealEstate in Japan. Let's see if I can get up to your numbers LOL Yeah I'm either positive thinking or slightly delusional. :P
The Presidential salary is less than the income required to buy a home in San Jose. Even if you don’t like him, think about that - the most powerful job ever pays less than what is needed to buy a home in San Jose.that really shows how distorted the housing market has become.
I agree with the solutions you have too. No idea why the government doesn't think of these things. Are they dumb or are there other things we just don't know about?
So all tax payers are paying for this. The sellers and the buyers are paying for this. Not only is everyone paying for this, interest is attached. It’s not free money.
doing it to save the investors and the builders so investors can get out, and the builders can get out of the massive build homes they have on hand... Period!
-Set up a trust in minutes (Enjoy the benefits of privacy and placing your property in a trust today) - Use code GRAHAM For 10% Off: - www.getdynasty.com/?linkId=lp_565170&sourceId=graham-stephan&tenantId=getdynasty
-Here is a link containing the source material for each piece of research cited. I do my best to make my videos as accurate as I can, and the additional resources should help anyone who wants to look into them further - enjoy! docs.google.com/spreadsheets/d/1Os8ZBu2o0KgXAJOpgFmqWCxF271wiCHQRJCW_d_vNTU/edit?usp=sharing
Hilder is definitely the best so far. she always surprises me with amazing results.. We also plan to surprise her. You must have heard of it.
Hilder allows you to express your fears and she still rests your fears and that is my respect. I don't normally comment on videos, but this word should be included. she is really cool.
Graham what are the rules for the trust as I was told if I placed a home that has a mortgage in a trust the bank can call the loan can you verify this please and thank you.
I'm NOT subscribed, but why is your video coming in my feed? Honestly, I don't like it.
,😊😊
I paid up all my mortgages in 2yrs while working with a Financial Adviser. I’m 50 and my husband 54 we are both retired with over $3 million in net worth and no debts. We got to realize that the secret to financial freedom is making better investments.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
Accurate asset allocation is crucial. Some use hedging or defensive assets in their portfolio for market downturns. Seeking financial advice is vital. This approach has kept me financially secure for over five years, with a return on investment of nearly $1 million.
Mind if I ask you to recommend this particular coach you using their service?
Rebecca Nassar Dunne maintains an online presence that can be easily found through a simple search of her name on the internet.
Thanks for sharing. I curiously searched for her full name and her website popped up immediately. I looked through her credentials and did my due diligence before contacting her.
I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
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 sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
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 years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
Let's get this straight.. the government printed loads of money in 2020 which was followed by rising cost of living and housing prices. Then they raised interest rates to "fight inflation" making it even more unaffordable to buy homes. Now they're proposing to give more handouts to home buyers taken from tax payers and additional money printing.
Brilliant, right?
All about control and buying votes to maintain control.
Exactly!
How do u think we got to this point in the first place.
I certainly hope this is not nationwide insanity and just in the state of Lala land California since all of his examples were there.
@JoeBiden
As a single person in their mid 20s, owning a home without throwing myself into lifelong debt seems practically impossible. I've done what I was told: I did well in school and graduated with a STEM degree, but still graduated with $80k in debt. I have a good job and live well within my means, contribute to a roth IRA, paid off my car, make sizable payments towards my loan and very rarely go out. I've done everything I'm supposed to; so why does something like owning a home seem so far out of reach? Even if I save absolutely everything outside of required expenses, it'll take YEARS to save for a down payment on a home.
Move to a normal market
You have time my dear. Got my first house at 34. I am now 40 and only have 49k left to pay it off. Be patient
This is so real. As someone lucky to be able to afford buying a house right now at 30, it's only because I lived frugally with roommates for years to save to make it feasible with a decent paying job from a college degree. I'm was lucky to not have a large amount of loan debt from school that is paid off now. Even with all that, I feel like it's hard to find a decent home I can reasonably afford right now with a large down payment.
I have no idea how anyone who isn't debt free and doesn't have a good paying job could afford it on a single income, it's impossible. You either need a significant other or roommates to afford a house right now and even then it's probably rough...
If it makes you feel better I graduated with no debt and I live in an area that is not like insanely bad but its still near impossible to own a home.
Buy a home outside of the city.
Property tax for residential land is insane to me.
you work your whole life to afford a down payment for a 20-30 year loan.
and even after you pay all that off you owe the state tens of thousands a year in perpetuity.
why do we put up with this?!?!?
Tens of thousands my property taxes here in pa are $1700 a year lol.
That’s Pennsylvania, but look up places like New Jersey or Oregon. The property taxes are absolutely insane.
@@ComplicatedLADYcom__Blog in some cases if you cannot afford to stay it might be best to move or downsize. Everyone here wants the biggest houses and fancy cars. Then complains about the higher costs.
@galupproperties3098 except that there is litteraly no way to predict what property tax will be 30 years from now because it's an artificial cost imposed by the state
One day soon, this bubble of pure greed is going to burst. Sellers are being greedy (and have no other choice but to sell high) realtors are lying,and the gov doesn't care... life's gonna balance all of this out... watch.
You basically made my interest in finance. My whole life probably changed just because of your videos. Feels great to be so financially ahead at 21.
Congratulations!!
Watching RUclipsrs doesn’t make you financially sound. They’re humans just like us. Better pull up those charts and pick up those books and get to work.
@@RJTradess like I said, he made my interest in finance. Leading me to read hundreds of financial books and learn myself. Read.
@@RJTradess No, like I said he made my interest in finance. He sparked it, began it, made it. He did not make me financially literate I never said that.
@@zzzenx that’s great I’m happy for you. Don’t take offense to my statement I didn’t mean anything malicious by it. I’m speaking from experience.
Housing is insane. Where we live we make too much to qualify for any of these programs, but make no where near to purchase a home even with 20% down unless we want to be house poor.
That's the idea, they are making it so only people who definitely can't afford a house are the only people buying, they set the trap, they will pull the trigger after next election and liquidate everyone
Damn =(
@@HippieP629 yep, that’s life!
"Man if we keep giving them handouts they won't be mad about the cost of everything!" - U.S. Gov
Lol
Who is “them” and handouts why do you people always behave like you are so honest and on top of it when your legacy is riddle with dishonesty handouts and stealing
@@ursulamoon9567 I was meaning "them" as the government giving handouts to the people of the United States without fixing any of the real problems. They print extra money to inflate the already volatile economy
As for my personal legacy, it is not riddled with handouts, dishonesty and stealing. I cannot change anything that has happened in the past, nor can I control what anyone does with their legacy. I can only control what I do and what my legacy looks like in the future so please don't group me in with a group of people who have done horrible things in the past based, on what I look like. I can respect your opinion, but you don't know me at all.
I’m a home builder in Florida and you are absolutely correct. There’s not enough profit in moderate to small houses for it to be worth the risk. And building houses is generally a high risk endeavor.
Everything is about money in relation to risk.
You’re spot on Graham, if home builders had less risk or more incentives we would build more starter homes.
Or less cost through deregulation
@@bryanupton9872 the problem with deregulation is the offering of the finger and the taking of the whole arm.
Could you expand on that please?
Yes, I’m not clear on how building a small home is a risk? Especially in Florida, with a major housing supply issue, it seems like you could easily sell the house. The risk would be on the bank making the mortgage loan to your buyer.
Even with such high house prices though?
This whitehouse is objectively insane. Screw politics, think rationally - this will obviously drive up asset costs rewarding those that already hold them further screwing the younger generation under the guise of "help". Lesson, whenever the government says they're helping, or a bill is worded as such, it is ALWAYS the opposite. 100% hit rate.
Kinda buying votes by courting young voters
I agree with your ending statement. You need to incentivize low income and starter housing of any kind. House, condo, apartments, tiny homes, whatever. But it has to make sense to the developers before they are willing to build it. You can’t ask a company to go out of business because you need more housing. Help them, they will build more. It’s that simple.
We don’t need more starter homes. There are already loads of tract homes builder grade everywhere and giving more incentives to build blight won’t fix anything. Building more premium housing and allowing people to move into that frees up all of the homes those people are already in. One of the things we need most is quality housing for gen x empty nesters to downsize into. Because there is no quality small housing for these empty nesters they stay in homes way too large for them.
Nothing brings down prices quite like pumping even more Monopoly money into a low supply market.
I’ve said over and over again that we need to teach basic economics in schools but we might actually need to begin with DC and our government officials
We DEFINITELY need to start with DC! They're experts at throwing away OUR money, but not much else. SMH.
You elected everyone in DC. Blame yourself. @@ChantillyWhite
@@pedro72246 I actually did not. But I blame the people who did.
Are u suggesting a purge?
i'm in CA in the Ventura area, combined my GF and i gross around 120k, we have enough for 20% down on any house we would like but with the average house between 650k-800k its not realistic for us to afford the mortgage. gotta love it.
Back when I was buying a house throwing down 8k with a conventional mortgage was a zillion times easier than applying for an FHA type mortgage riddled with fees and terms after the fact. It made my bid on the house more competitive as well. They should be incentivizing more building of smaller single family homes like what habitat for humanity builds.
this could be really nice for us, me and my wife got a starter home and are wanting to move in the next five years. we don't feel comfortable starting a family in the neighborhood we are in now, to many homeless and other factors are always around. If this passes it would make affording the change so much easier.
A federal bill gives you benefits only if your parents didn't own or messed up on their home?
Glad we're bringing back blood debt under a different name: a blood BENEFIT!
I know this is ridiculous just because parents are already in the market doesn't affect the fact that young people aren't so the parent owning is ridiculous.
Where I live - the government came and said, "we are here to help" they pay part of the interests for first time home buyers. That caused 20% raise in housing price but 20% drop in rental prices. As an owner of mortgage free rental units... I don't know if to laugh or cry. Thinking about selling them and have cash for few months.
Yep, I completely agree that being able to take our current interest rate and tax-basis with us would immediately incentivize us to move. My wife and I have been at our home since 2011 and we have a really low interest rate as well as tax-basis. Even though we make well over twice as much as we did when we first moved here, we feel trapped because the interest and tax rates drive the monthly payments up to ridiculous levels. The houses we could justify wouldn't be that much of an upgrade and our monthly payments would nearly triple. It's pretty frustrating to get to the point that you're making solid money for your area, but still feel like it would be a horrible financial decision to buy literally anything on the market that would be a modest upgrade for us. Thanks for all of the great videos!
Thanks for commenting that was insightful
If the fed gave me $1500 a month i still couldnt afford a house. This country is SCREWED.
In my area that wouldn't cover the cost of a 1bedroom apartment without a kitchen.
That would barely pay for a studio/1BR apartment in NJ.
Once automation ramps up you'll be kicked out of your rental so the robots can rest.
Lmaoo@@MDTFoodAndTravel
Man $1500 is two times my mortgage. I'd be living rich off the hog and the government would be paying for my house ha!
Isnt it carzy how I am watching a video by a Grahan and he will be reading this comment in his own world while I'm writing it in my own. Maybe our lives will never cross again.
Hahah when you put it that way…🧐
What do you live on Mars or something?
He lives in the square root of the negative third dimension. The only reason we observed this is because you did.
😱😵💫🤯
It’s crazy that I’m writing this review from my own world, while you both see my comment from yours. Crazyyy 😮😂
I completely agree. I refuse to sell my home because of my 2.25% rate. If I could rollover I’d sell this thing in a heartbeat and relocate
Pretty much the only people selling are those that are:
- Retiring and finding a cheaper house out of the city
- people who must for a new job
(Okay that didn’t need a list)
Bought my house in 2015. 744 square feet with a large detached garage. 52k in price here in pa. My property taxes are $1700/year. Living decent.
Property taxes are way too high for a place that tiny.
Real estate is just fkin INSANE right now. My dad sold his 57 acre ranch in Texas in 2017 for $347k, they just listed last weekend (03/20/24) and it’s at $1.8M. Doesn’t mean they’ll get it, but even if they took $1.4…. That’s just insane
Nice.
Condolences for your dad.
If I could carry my rate with me id move tomorrow.
Sooooo many people would!
We got $0 down and got all of our closing costs paid for in seller credits and got a 2k check in the mail. Our mortgage lender got us this by helping us buy in a specific zip code with certain demographics. We love it in our neighborhood!
10k credit is a major joke!!!
Opportunity zones are a prime example of tax incentives for developers
I love your solutions and I agree hundred percent that people will start buying and selling homes again and the market will become healthy again, but the cronies and government colluding with the banks will never let something like that happen. That’s too much help for the American people and they can give a damn about our benefit.
Graham is speaking the truth here. I like how he does a deep dive on how it plays out. More often than not most people fall for the headline and marketing without truly understanding the devil in the details.
You maybe forget to consider the 500k new rental units coming this year in Austin alone? Further added downward pressure!
Interest rates are not high!
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There is not enough housing period. A mixture of shortage of home builders, long processes in city and state regulations, and the low interests price explosion in 2020-2021. Im glad I sold my home for a profit and then turned around and purchased a bigger one in a better neighborhood.
I think a huge issue with the lack of housing is big investment companies quite literally attacking certain markets and forcing people to rent because they own so many houses in that market
This sounds the same as what is in Australia. I think the solution is to incentivize builders and increase the supply dramatically so this reduces house prices.
No the solution is kicking out the millions of working holiday visa and student visa holders until the supply can be built
Hope all is well for everyone! 😊❤
You too!
Prosperity, Abundance, and the most Pure Love 💗
We use our military to build housing in other countries, but for some reason we refuse to even try to help our own here is just criminal! This just seems like a perfect scenario, where government should step in and build housing that the private market refuses to solve. We have an entire country's amount of people sleeping on the streets. It's just gross negligence!
Any government intervention to improve affordability on the buy side is only going to heat up the market. It needs to be done on the supply side through increased homebuilding. The only way to feasibly increase affordability on the buy side is to incentivize NOT buying a home (e.g. treating the housing market like a carpool lane; give people some kind of benefit for living together rather than getting their own place).
History repeats itself 😅😅
Great vid, as usual!
Thanks!
All the “convenience” fees should be illegal in bill pay. If I don’t use this specific service to pay my bill a lot of times there are no other options available especially with rent!! This country is so blind corrupt and incompetent
100% agree I studied economics and gram thinks like one 👍
Anytime the government intervenes there's always unintended consequences. As Thomas Sowell or Milton Friedman said, "There's no solutions only trade offs" (rough paraphrase)
This mortgage credit is going to backfire.
Its only backfiring if increasing affordability was the actual intent, and not merely a pretext.
Bring back mortgage assumption. Banks can make money on transfer fees and buyer can assume the sellers low rate mortgage.
I just bought a new house, but was sold to me lower than what they paid in 2008. Needs work, but a lot of room for equity. You can wait out rates, you can't wait out a good deal. Lower rates, higher competition. 👌
This is the best video I've seen on this topic. You put in the effort and it shows. Nailed it on the solutions, I've been racking my brain on what the fix would be for this problem. This makes so much sense to me.
How is anyone going to be able to afford the payment with zero down, let alone the homes are over priced.
All this will do allow these big corporations to make big profits selling these over priced homes, they will not sustain any losses, instead of homes going down!
All the measure is to help the rich landlord and corporation who buy up 10000 homes to deny other poor from living.
Rents are NEVER going down.
Insurance companies are cutting NEW buyers off on new ins to cover losses of a home. NO WAY buying a 1st time home.
Dude I left for a while and i come back to 4.6M subs. Congrats
The $10k tax credit does nothing to make houses more affordable. It is almost like student loans where colleges raise tuition prices because everyone has access to the money the government is handing out.
What needs to happen is more supply needs to be created such as building it or restricting how many houses a person/company can own. Having almost every house be a single family house doesn't help with affordability. Need to do some city rezoning.
The thing is not many people like town homes and want the single family home.
@RJWaynerium They can want the single family home but unfortunately they are not available or people are priced out. I'm sure people would prefer to get a townhouse in the interim instead of continuing renting.
On top of insane house prices. Something else that is contributing to unaffordable housing are the insane HOA's... And it seems like all new developments have them now. That's just what everyone needs when they are struggling to get an affordable house price from a bank, then an organization that does next to nothing for you decides to tack on an extra $300-$500 monthly fee! It's the worst!
Rates will go down. And there are many lenders offering no lender cost refinancing.
Also buyers can assume the rate on government loans if the seller has a government loan. I'm a realtor in AZ if anyone wants help! 18 years prior mortgage lending experience under my belt!
@zildian1983 You can assume the rates but the challenge seems to be that sellers want the buyers to take out a 2nd loan or pay cash to pay the difference between their loan balance and the asking price. The amounts I've seen so far make it impossible to do those deals unless you have 30-50% cash.
I don't know who are the lower life-forms; used car salesmen or realtors.
@willski52 elaborate as to why realtors are lower life-forms 🤣🤔
The Poppy loan for the San Francisco Bay area is still available. 100% financing for up to $2,000,000. PMI insurance is not required.
It’s just crazy the government doesn’t think of the unintended consequences. Or, “conspiracy theory” they do and all of the “unintended consequences” just happen to help them.
My husband and I are struggling to find our first house because it's so unaffordable where we live. We just got married in October. We wanted to move out by this summer as our lease is up in June, but at this rate, we're probably going to be in our apartment for a 5th year 😭
Renting seems to be the overall cheaper option right now for most places!
@GrahamStephan It's sad, and we make at least $150k a year combined. Even when we do renew, it'll go up again. There's never a good option. Thanks for always being so realistic about the market and and how it's almost unaffordable for millenials and first-time home buyers.
With the house prices nowadays. $10k is nothing, yeah it's better than nothing.
The initial act of buying a home sucks but to own property is a blessing
Some new builders are offering 20k incentives for first time homebuyers to buy points to reduced interest rate. It covers closing cost and buy points. I think is a great incentive.
If we buy at market highs, we just need everyone to keep buying so the market could climb higher then sell we for profit and repeat
The dream for all program is amazing. Wish they had that in Utah. There's a DP program in Utah where they'll give you 25k but has to be a new build over 450k. That still makes the home unaffordable with the high interest rates.
Excellent final rundown of 4-5 adjustments to current legal/industry standards re: loan rollovers, capital gains waiverss, etc. One more item we should add-particularly for anti-business states such as CA: remove the (already ponderous and ever-increasing) discriminatory regulations targeting landlords, who are treated less kindly than someone farting audibly in a stalled elevator by state/local officials. Until landlords are afforded legal rights comparable to other businessmen, NO ONE will be interested in leasing domiciles in $hitholes such as LA or San Fran
The loans are backed by the property…… there would have to be heavy regulation to allow the transfer of loans
Banning megacorps / groups like Black Rock from buying houses wouls help a lot.
Then prioritizing citizens / legal residents to buy houses.
Low(ish) taxes on 1st home (primary home) medium to high taxes on secondary home, and ridiculously high taxes +3rd home.
😆 🤣 I already have 0 down it's called a VA loan..
Touché
@GrahamStephan I get helping people but, help your country the military is literally giving tossing money at people. Just sad... how the government is going to hurt the economy.
Yeah but that applies to 0.5% of Americans, sadly
@@sony2menu you can always join. Otherwise shhhh
@@irrelevantjoker37 i did. I am.
As a first time homebuyer in 2022, I opted for a condo. I recommend all first timers do the same to get a start in building equity. I put 10% down, and my 2br1bth has already appreciated around 10%.
Oh i don't think I'll ever sell. I briefly thought about it, but Im just too emotionally attracted to my house. Also the housing market here is crazy with low supply and everyone else has tiny lot sizes. Not worth it.
There is a fee charged every time a credit card is used. The end user will always pay for it one way or another. It costs money to process checks and cash also.
Downpayment assistance programs are ridiculously complicated to deal with. Im in Texas and we have the NACA program. There is no follow through with it. You have to keep all your records on standby at any given moment for a 6mth to year and cant be a day late on any payments of anything the entire time. Its definitely not easy. And you really really have to want it to make it work.
Blackrock is absolutely loving this, just waiting to scoop up the ashes.
For any first time home buyer I’d wait for things to drastically change/hit the floor let them make the best changes they will give citizens and then once drastic change happens you will have better opportunities for your $
If this is the case realtors should get paid less during this time. The demand will be high. After all, their cut is a large amount for doing no work.
My parents built a new house in 1999. My dad made just above minimum wage, as did my mom but she was part time.
The state already has multiple incentives for prices never to go down, most of them tied to assessing property values, school zoning, etc. Heavens forbid we detach school funding from property values, someone without rich parents would be allowed to succeed…
Gov is benefiting from this bubble the same way landlords are, if not more.
Great info as always don’t stop. This channel has to much added value. Tks Gram man
Graham that’s the best thing about Florida save hour homes we can transfer our low tax savings to the new more expensive home and it’s called portability
🎵🎵Tonight we're gonna party like it's Two Thousand and Eight🎵🎵
These idiots never learn.
in California that credit will be needed just to build the garage door..
So, we are just recovering from a lumber shortage during the pandemic which sent lumber prices through the roof. When they give out all of these incentives to build homes, is that not going to put a huge strain on our material supply and in turn raise home prices even more?
Yessir
I got 8K to buy my first home in 2010. Own it for 10 yrs and the house doubled in value over that time.
I am about a minute into your video and this feels like what led to 2008 but I’ll listen to the rest now.
I Agree on the last part of the video as a better solution… but as a very good friend of my used to say… “They Are Way Too Many Hands In That Cookie Jar”
I don’t see that happening but I had to say it is a very nice idea!
It's a bit odd. I think the White House, if anything would have to try to incentives homeowners to sell so that there's more inventory on the market.
I live in the bay area and the housing market here is ridiculous....Houses here will cost you your life 😂
And will not exist once the second Big One rolls through.
My son has a 2.5 interest rate bought the house in 2021. Now he has decided it is way too big and too far out and needs too many updates. He wants to sell but can't. If he could take that interest rate with him, he would sell tomorrow!!!
I'm in the process of buying a starter home and this is both music to my ears and incredibly concerning with the state of the housing market and where it's going. Thanks for the vid graham
To your point at 13:25, it seems like in SoCal at least there were a ton of starter home suburbs being built from the 70's thru early 00's. Why is it that the developers during this time felt like it was worth it to build this way, and why did that change?
On the point of convenience fees, I currently pay $80 for a flat fee for the property manager to pay city services that used to cost me $40 when I paid them directly.
I own 13 properties in Japan but, I am feeling the competition here in Japan. It's still cheap and afforbable...but prices have been going up steadily. Not sure if you remember me commenting all those years ago! I remembering commenting when you had like 50K subs. I just started my channel last year on RealEstate in Japan. Let's see if I can get up to your numbers LOL Yeah I'm either positive thinking or slightly delusional. :P
Why would it matter if my parents own a home or not? Why is that a requirement. Makes no sense
The Presidential salary is less than the income required to buy a home in San Jose. Even if you don’t like him, think about that - the most powerful job ever pays less than what is needed to buy a home in San Jose.that really shows how distorted the housing market has become.
The government needs to get back into the business of building public housing. The private sector has no incentive to make housing affordable.
I agree with the solutions you have too. No idea why the government doesn't think of these things. Are they dumb or are there other things we just don't know about?
So all tax payers are paying for this. The sellers and the buyers are paying for this. Not only is everyone paying for this, interest is attached. It’s not free money.
.. not "record high interest rates..", we've seen much higher in the past.
We need a free market and put this insane govt. in its place.
Please, in future, on this topic, remember to factor in the oligarch--big funds, investment syndicates--influence on housing, esp. affordable housing.
Given government and policy makers are generally wealthy property owners does it not make sense to hyperinflate property prices if you could? Duh!
Wouldn't be surprised if the 10k tax credit had a backdoor clause in there to let them take your house.
doing it to save the investors and the builders so investors can get out, and the builders can get out of the massive build homes they have on hand... Period!