Saying that renting is better than buying is a huge generalization. If you're in your first job and don't have any saveings yet then it's ofcourse a bad decision to buy a big familly house for 30 years mortgage you can bearly afford to pay. But if two person get a well paid jobs, have no consumer debt, have an emergancy found and saved for a down payment to buy a resonable first property with 15-20 year mortgage it may only be a blessing for them.
I agree with you. What I want to point out is that most people unfortunately take this decision lightly and don't really analyse their finances before making such a huge investment. But obviously, in the conditions you said, there is no reason why you shouldn't buy a house!
House buying is super simple (US version). 1) if youre not going to be there for at least 5 years....renting will in most cases be better for your wallet. 2) Getting a decent deposit is usually the hardest part...20% is best, any less than 20% and you'll be paying an additional payment called PMI (PMI is a mortgage insurance YOU PAY, but it covers the bank if you default on mortgage repayments and the house has to be sold for LESS than you borrowed) 3)Try to get a fixed interest repayment mortgage so you'll know exactly what youre paying each month. 4) In most situations its really best to not buy more house than you need Theres more but id start with these
What buying a house gives you control over your future. We bought a house early in our marriage and yes it was a struggle at first but quickly adapted to the lifestyle. Now we managed to pay it off and are in the position to have our adult child living with us and he is not lighting 2k a month on fire paying rent. You will always need a place to live better to have one under your control rather than a landlord that will raise rent as market dictates.
Happy to hear that you managed to pay it off! That's an important achievement! Buying a house is definitely a good choice in many situations, but the mandatory pre-requisite is that you really know how it will impact your finances!
Buying a house is a great idea most of the time with some caveats: you need to spend some time in the house, if it's not your forever house your repairs should be basic, pay off your mortgage asap, and you need to understand that basically you are only going to make your profit difference in rent avoided.
What you say is true, but it really depends on your financial situation. And the problem is that most of the people just think about buying a house without really considering how it will impact them over the years.
For me buying a house was a pretty easy decision, for a number of reasons: - It is cheaper then renting for me, at least for something similar. (with dutch tax benefits into account). - Leverage on an appreciating asset. - I build up my wealth. - No landlord. I've heard my fair share of horror stories. - The mortgage payment doesn't increase with inflation, so I do expect to be paying less in real terms in the future.
Great! It is true that all of the buy vs rent discussion changes a LOT according to the country in which you are living. It really makes a huge difference. As well as having a fixed mortgage rate as you have also saves a lot of money over the time.
Well, if you consider only the mortgage payment you are missing on a lot of other costs and so it could be risky. But, if you have correctly analysed all the costs and it is the same as renting, well it is better to buy.
You expensive seem very high. There are studies that show people are adjustable, if you have a mortgage people will reduce their expenses accordingly. Also if the bank gives them a loan all those safety margins are considered.
Well, that's a very common misconception. It is actually often better financially to rent. I talk about thatbin this video, if you're interested check it out! ruclips.net/video/nW1yXQtwdow/видео.htmlsi=BgkIqh2N1CoXE_mz
Financially you're better off renting and investing the difference into a retirement account or something. Everyone always thinks buying a house is a good investment, but it's an absolutely terrible investment. It's only a good investment if you can buy in cash or put a significant sum down in cash. If you need a 30 year mortgage, it's only good for a fixed rate cost of housing for 30 years, but you wont be making any profit off of that investment. If you buy a 200k house today, you'll have paid about 500k for it by the time you have paid it off. Based on a 30 year average housing appreciation, your house is likely to be worth 600k by this time. Once you factor in the cost of maintenance for that house over 30 years, you most likely only broke even on that house over 30 years. Obviously this is locality dependent, because housing appreciation is different everywhere, but this scenario describes the average. With renting, you pay no maintenance fees on the home, and you have cheaper insurance, and the general costs are cheaper than a mortgage too. It SEEMS like you're getting ripped off, but you really aren't. You have the mobility to chase cheap rent every few years and you can invest the difference into a fund that WILL profit over 30 years instead of breaking even. Renting for longer and then being able to provide a substantial down payment such that you don't need a 30 year mortgage and can stave off the interest will make buying a home a better investment.
@@KenW418 This used to be somewhat true, and I was an advocate for renting, but nowadays, what 'difference'? Renting is now far more expensive monthly than owning, so there's nothing left to invest besides money for food and bills.. Also, my parent's house was bought ~25 years ago for 80k, it's now worth 450k - 5.6x in 25 years. Obviously this depends on where you live, but many around big cities were looking at up to 10x or more in 25 years. They finished their mortgage and now are able to travel the world without paying anything except council tax and bills. They can take on a lodger to cover those costs too and essentially live for free. Renters can not do that. Renting leaves you with nothing to show other than whatever small amount you had left over to invest, compounded over 25 years, IF you had the money to invest at all. Owning means you have a much larger asset paid off, and you no longer need to pay the mortgage once it's done. You say there's the ability to chase cheap rent - no there isn't. If I pay to rent a room in someone's house (with no tenancy rights, can be kicked out at a moment's notice) then sure - but with a family that's not possible. Rent has nearly doubled here in less than 8 years.
Renting is better that buy a house if you already have all the money of the cost of the house. Yeah, if you have that money it is probably better to invest it. However, that is not much of the people who buy houses. Normally, people dont have money to invest, just the downpayment for the house. If you have that into account, no, renting is not better.
@@AOCisHome Well duh. This is why I said "invest the difference." The cost of owning per square foot is higher than the cost of renting when you take into account maintenance, higher insurance, property tax, etc. This difference depends on the area you live, but can be around $500/mo on average, and in some places much higher (property tax and insurance liability can be huge). If you put a $500/mo difference into some index fund for 30 years that's over $1 million. In my previous comments example, at 30 years someone who got a mortgage could be breaking even, while someone who invested the difference while renting could buy the same home in cash after 30 years and still have $400k left over. Before you say it, obviously this is not a universal scenario. There are a lot of factors. I'm only illustrating that it's not as simple as "when you rent you'll never see that money again and when you buy you're investing in your future," because that's simply not true. You have to consider the other variables and actually do the math.
It obviously depends on the situation, and it can be a good idea. But you have to know what you can afford and make the good estimations! It is exactly what I say in the video 😅😅
@@TheDevign Well, I definitely explain in the video to who this applies. And nothing ever applies to everyone! And according to your own financial situation it can make you poor or not. And numbers definitely show that.
buying a house for yourself to live in is a liability . Many people commenting here that buying a house for themselves is a great investment are just working class people, they will take a huge loan after they get a job because they think they will live for free in that house, look rich and after 30 years they will sell house and become multi millionaires lol
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
Buying a House Will Make You POOR (If you have no idea what you're doing)
Buying more then 1 House Will Make You RICH (If you know what you're doing)
Definitely!
4,5 mil living costs for 30 years? 150k per year? That's double the current household income. He must have some pretty decent living planned.
Especially is in a extremely expensive country (not the US) 😅😅
Saying that renting is better than buying is a huge generalization. If you're in your first job and don't have any saveings yet then it's ofcourse a bad decision to buy a big familly house for 30 years mortgage you can bearly afford to pay. But if two person get a well paid jobs, have no consumer debt, have an emergancy found and saved for a down payment to buy a resonable first property with 15-20 year mortgage it may only be a blessing for them.
I agree with you. What I want to point out is that most people unfortunately take this decision lightly and don't really analyse their finances before making such a huge investment. But obviously, in the conditions you said, there is no reason why you shouldn't buy a house!
House buying is super simple (US version). 1) if youre not going to be there for at least 5 years....renting will in most cases be better for your wallet. 2) Getting a decent deposit is usually the hardest part...20% is best, any less than 20% and you'll be paying an additional payment called PMI (PMI is a mortgage insurance YOU PAY, but it covers the bank if you default on mortgage repayments and the house has to be sold for LESS than you borrowed) 3)Try to get a fixed interest repayment mortgage so you'll know exactly what youre paying each month. 4) In most situations its really best to not buy more house than you need Theres more but id start with these
Totally true, and these rules also apply in Europe!
What buying a house gives you control over your future. We bought a house early in our marriage and yes it was a struggle at first but quickly adapted to the lifestyle. Now we managed to pay it off and are in the position to have our adult child living with us and he is not lighting 2k a month on fire paying rent. You will always need a place to live better to have one under your control rather than a landlord that will raise rent as market dictates.
Happy to hear that you managed to pay it off! That's an important achievement! Buying a house is definitely a good choice in many situations, but the mandatory pre-requisite is that you really know how it will impact your finances!
Buying a house saved my parents from having their money trapped in a bank during the financial crisis in Lebanon!
That's great! It is true that houses are always a good place to keep money to avoid crisis
Buying a house is a great idea most of the time with some caveats: you need to spend some time in the house, if it's not your forever house your repairs should be basic, pay off your mortgage asap, and you need to understand that basically you are only going to make your profit difference in rent avoided.
What you say is true, but it really depends on your financial situation. And the problem is that most of the people just think about buying a house without really considering how it will impact them over the years.
@@NicoForaFinance you can easily avoid the financial issue by buying within your means. The biggest issue is people buying outside their means.
For me buying a house was a pretty easy decision, for a number of reasons:
- It is cheaper then renting for me, at least for something similar. (with dutch tax benefits into account).
- Leverage on an appreciating asset.
- I build up my wealth.
- No landlord. I've heard my fair share of horror stories.
- The mortgage payment doesn't increase with inflation, so I do expect to be paying less in real terms in the future.
Great! It is true that all of the buy vs rent discussion changes a LOT according to the country in which you are living. It really makes a huge difference. As well as having a fixed mortgage rate as you have also saves a lot of money over the time.
What do you do if you already bought a house?
You assess your financial situation and see where you stand. This will tell you if you are on the good road or if you should look to change something!
If rent is as expensive as mortgage why would you rent?
Well, if you consider only the mortgage payment you are missing on a lot of other costs and so it could be risky. But, if you have correctly analysed all the costs and it is the same as renting, well it is better to buy.
You expensive seem very high. There are studies that show people are adjustable, if you have a mortgage people will reduce their expenses accordingly. Also if the bank gives them a loan all those safety margins are considered.
rentings bad.. u loose the money get nothen out of it... where as paying off a mortgage is like investing in ur self...
Well, that's a very common misconception. It is actually often better financially to rent. I talk about thatbin this video, if you're interested check it out! ruclips.net/video/nW1yXQtwdow/видео.htmlsi=BgkIqh2N1CoXE_mz
Financially you're better off renting and investing the difference into a retirement account or something. Everyone always thinks buying a house is a good investment, but it's an absolutely terrible investment. It's only a good investment if you can buy in cash or put a significant sum down in cash. If you need a 30 year mortgage, it's only good for a fixed rate cost of housing for 30 years, but you wont be making any profit off of that investment.
If you buy a 200k house today, you'll have paid about 500k for it by the time you have paid it off. Based on a 30 year average housing appreciation, your house is likely to be worth 600k by this time. Once you factor in the cost of maintenance for that house over 30 years, you most likely only broke even on that house over 30 years. Obviously this is locality dependent, because housing appreciation is different everywhere, but this scenario describes the average.
With renting, you pay no maintenance fees on the home, and you have cheaper insurance, and the general costs are cheaper than a mortgage too. It SEEMS like you're getting ripped off, but you really aren't. You have the mobility to chase cheap rent every few years and you can invest the difference into a fund that WILL profit over 30 years instead of breaking even. Renting for longer and then being able to provide a substantial down payment such that you don't need a 30 year mortgage and can stave off the interest will make buying a home a better investment.
@@KenW418 This used to be somewhat true, and I was an advocate for renting, but nowadays, what 'difference'? Renting is now far more expensive monthly than owning, so there's nothing left to invest besides money for food and bills..
Also, my parent's house was bought ~25 years ago for 80k, it's now worth 450k - 5.6x in 25 years. Obviously this depends on where you live, but many around big cities were looking at up to 10x or more in 25 years.
They finished their mortgage and now are able to travel the world without paying anything except council tax and bills. They can take on a lodger to cover those costs too and essentially live for free. Renters can not do that.
Renting leaves you with nothing to show other than whatever small amount you had left over to invest, compounded over 25 years, IF you had the money to invest at all. Owning means you have a much larger asset paid off, and you no longer need to pay the mortgage once it's done.
You say there's the ability to chase cheap rent - no there isn't. If I pay to rent a room in someone's house (with no tenancy rights, can be kicked out at a moment's notice) then sure - but with a family that's not possible.
Rent has nearly doubled here in less than 8 years.
Renting is better that buy a house if you already have all the money of the cost of the house. Yeah, if you have that money it is probably better to invest it. However, that is not much of the people who buy houses. Normally, people dont have money to invest, just the downpayment for the house. If you have that into account, no, renting is not better.
@@AOCisHome Well duh. This is why I said "invest the difference." The cost of owning per square foot is higher than the cost of renting when you take into account maintenance, higher insurance, property tax, etc. This difference depends on the area you live, but can be around $500/mo on average, and in some places much higher (property tax and insurance liability can be huge). If you put a $500/mo difference into some index fund for 30 years that's over $1 million.
In my previous comments example, at 30 years someone who got a mortgage could be breaking even, while someone who invested the difference while renting could buy the same home in cash after 30 years and still have $400k left over.
Before you say it, obviously this is not a universal scenario. There are a lot of factors. I'm only illustrating that it's not as simple as "when you rent you'll never see that money again and when you buy you're investing in your future," because that's simply not true. You have to consider the other variables and actually do the math.
This is a bad argument. Buying a house is a good idea sometimes. Obviously, you should buy a house you can realistically afford.
It obviously depends on the situation, and it can be a good idea. But you have to know what you can afford and make the good estimations! It is exactly what I say in the video 😅😅
@@NicoForaFinance Then why the clickbait title and thumbnail? "Why Buying a House Will Make You POOR"
@@TheDevign Well, I definitely explain in the video to who this applies. And nothing ever applies to everyone! And according to your own financial situation it can make you poor or not. And numbers definitely show that.
You have beautiful lips
F@g
Lol
"promosm" ❣️
buying a house for yourself to live in is a liability . Many people commenting here that buying a house for themselves is a great investment are just working class people, they will take a huge loan after they get a job because they think they will live for free in that house, look rich and after 30 years they will sell house and become multi millionaires lol
So true!