The real cost of owning real estate in America
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- Опубликовано: 10 июл 2020
- For years, I never wanted to buy a house. There were so many factors that made me not want to do it like mortgage. For many, mortgage is a foreign term, so in this video I decided to teach people what it is, how it works, and why buying a house may not be the best solution for everyone. We tackle this course numerically to show people how a mortgage loan of half a million may be more expensive than it says.
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FYI forgot to mention some houses require an additional payment for the home owners association(HOA) further increasing the monthly payment.
Oh god, I hate HOAs. Hopefully they will have all died out by the time my generation starts taking over those 55+ communities.
My guy I want to congratulate you for a big accomplishment. Because of your channel it inspired me to pursue engineering as well. This fall I will be doing my last 2 years at cal poly Pomona. Thank you and congratulations !
Cool man! Congrats! Thanks for the support.
I’m a senior in high school right now thinking of applying to poly Pomona. I’m thinking of majoring in chemical engineering. How has your experience been so far there?
Z U C C it’s a fantastic school for engineering. Why do you want to pursue chemical engineering if you don’t mind me asking ?
Alex Lopez Well now that college application season is coming up, I’ve been really researching chemical engineering and now that I’ve thought about it, I don’t think that’s what I want to do as a career. I do still want to major in some sort of engineering tho
Alex Lopez It’s just hard to think about what you want to do as a career for the rest of your life at age 17 yknow?
I remember watching your videos as a senior in high school contemplating studying engineering. Today I am an electrical engineering graduate, working in my full time role! Always loved your videos and will continue watching to learn financial tips
Glad to know you made it! Thanks for the support!
That's why I prefer paying 100% straight up after saving $30k/year from my engineering job. I will buy a home somewhere in the $150k range (Arizona). 1/5 of the way there already. I hate debt and interest.
Wow! 150k?!?!? How big of a house can you get with 150k in your area?
Hey congratulations man. I don’t know you personally but I’ve been watching since your first video and want to say I’m extremely proud of you.
Thanks man!
Really? My first video? That was back in 2011!
Watching this video makes me understand the value of my parents better. Thank you
Ay, I learned this in my financial engineering course 😌
And people say “they don’t teach this in school”
@@RelearnMath The irony is that those people who say "they don't teach this in school" are doing the very thing that they criticize, selling courses.
Ofc, there are exceptions and truth to this saying. Which is only applicable to those liberal arts degrees such as a dance therapy degree.
Are you an Engineer? @Daisy
Jaime Guzman I’m still in school but I am in the engineering department for the company I work for 🤷🏻♀️
Thank you
I’m currently a junior in electrical engineering. 3.35 gpa... just tryna see the finish line. Thank you for motivating me.
Buying a house is still 100% worth it because of the appreciation in value, while money loses its value. Imagine house prices 30 years ago and the power of a dollar. You could buy a lot with $1, and houses used to be a small fraction of what they are today. 30 years later, however, you can't buy anything for a dollar, and houses have ~10x in cost.
And on top of all that, that house you buy can be passed down to future generations (or sold and the money split up amongst your beneficiaries, etc) to set them up on a good track. If you rent, there is nothing to show for it.
Great video! My old butt (29) is going back to school to change careers to become a software engineer. Thanks for the information!😎
kevin yancey Good Luck man! and 29 is not old lol
(26) I'm thinking about going back to school too for a change in career in engineering (electrical). You're not alone friend.
Alternate title:
why tanking a loan to buy a house is a scam.
Suggestion: buy the house, keep it for your kids who will not have the opportunity to buy a house at $500,000. Actually $500,000 is a bargain, therefore buy 3.
My reasoning:
In the majority of countries in the world it is becoming increasignly diffucult to have social mobility. This means that it is getting harder for the poor who work hard to improve their status. The oposite also applies, it's harder for lazy rich people to loose their status. Therefore, more and more people in the future will seek to migrate to the west to seek new opportunities. This will increase realestate prices in the west.
Do you think engineering school still worth the effort right now?
Is engineering through zoom a good idea?
Do you think this will be a waste of money and time right now or should some of us keep grinding?
Yes it is still worth the effort right now.
The answer to expensive homes isn't paying rent. It's buying a small home that you can afford to pay off in a few years. The taxes on a small house with utilities will cost less than rent. Want to travel around? Fix up your house and sell it and live in your vehicle for a while. The idea that rent isn't an even bigger scam is a joke.
That is true…not to mention you’re at the mercy of the landlord on rent increases. On a mortgage your payment stays the same for 30 years if you get a fixed rate loan.
Ayy first viewer
Also the equity increased on the property and after 10 years the property is worth 750,000 and by the time 30 years later the property is worth well over 1 million dollars and you will own it and 30 years paying 2500 or more in rent you will have nothing you can sell or increase your net worth
Quick question when do u suggest an engineering student to get an internship?
After taking 4 fundamental classes,
Basic Circuits - DC,AC, resistors, capacitors, inductors.
Digital Systems - understanding of binary, gates, registers,state machines and a basic understanding of communication protocols.
Electronics 1- understanding of diodes,transistors basic amplifiers.
Programming class- any language but recommend C /C++
30 years is basicly all ur duty life. slave of ur wishes
True! It's pretty much an entire career.
Looks like my 21 year old ass will be living with my parents forever :/
Stay positive my friend.
You are right in saying you will pay over 1 million for the 500k mortgage and all the other expenses but remember the house value goes up with inflation over time so lets say your mortgage is 3% interest and inflation is 3% you are effectivley getting a free loan.
In the future your property will be worth significantly more with inflation and although you havnt really "made" money (thats why property gains on your owner occupied property isnt subject to capital gains tax) you will at least have inflated away your debt to some degree.
The trick to all of this is if youre going to buy a house buy it cheap and or pay off the mortgage as quick as you can and only buy and sell maybe once or twice in your life otherwise if you add up all the settlement fees and other fees it may have been cheaper renting and investing the rest of your money into index funds untill you have enough that the dividends cover your rent.
Watch videos describing is renting cheaper than buying
Yes that is true! Thanks for the insight.
Or you can take the bank to court and prove they did not risk anything, because they create the money out of thin air, and then you keep the house, Sms then further pursue allodial title. Like a real American.
Can you make a video on how to get a lambo when you are a electrical engineer
Apollos Pierre I have one! Look at my channel
@@RelearnMath ok
Also do are you able to make a video on how to be a electrical engineer in apple company
I bought a house in 1999 on a 20 year mortgage and payed it off in 2019 alone with my credit cards and car loan best investment in myself I could have ever made now I found nearly 3 grand a month to save and every nickel and dime landlord and two for a penny investors wants to buy my investment in meeeeeee
It’s just a title, I have plans to release a video about all the benefits of buying a house. You’re ultimately right, buying a house is the best choice!
And the sooner you pay it off the less interest you will have to pay
Isn't 4% like extremly high???
Right now it’s high but a couple of years ago it was low.
But after 30 years, inflation will make that interest not so bad and you'll have an asset that has been appreciating faster than inflation. Also pay down your home faster than 30 years and you'll pay less interest. They don't even allow 30 year loans in Canada. There are so many good reasons to buy a home and the argument requires more nuances
I agree! I bought a house for those very reasons
Yep that’s right you tell him he doesn’t know any better because inflation is here now in 2022 and the cost of rent houses and cars and everything else is going up up and away. Glad I payed off my mortgage in 2019
4% mortgage is also so high! You'll never pay that over the whole 30 years. You also won't pay that for 30 years
4% is actually pretty low, yes currently it’s high but historically it isn’t.
@@RelearnMath @REACH I started my mortgage 11 years ago and so I've never paid more than 2.5%. That's in Canada anyway. I don't think the prime rate will go past 5% for a long time because people here just would never stand for it. Too much pressure to keep the market hot and interest rates low. And politicians like to keep the people happy so they get votes back in
Mortgage is criminal. Thanks for the info, Id rather save then pay that shit
Pls dont make the letters move around anymore. It makes it hard to read
Nolide Astrokollo thanks for the feedback!
Congrats brotha but remember this life is temporary. Put your faith and trust in Jesus Christ. We are in for some rough times ahead.