our family came to Texas from Vietnam (as refugees in 1975). Been here ever since. I am retired now and planned to go back to Vietnam to retire. I have had it with Amerikkka. Owning a house is a SCAM!!! between Property Tax, School Tax, HOA fees, Mortgage fees, Home insurance, maintenance costs. I am DONE !!!!!
@@ttran3444 wow! Sorry you feel that way!! I thought people move to Texas for the low taxes lol. I guess it’s all relative. Good luck!! We just booked Vietnam for next March!! Can’t wait!!!!!!!
Good one Johnny. Keep spreading the wisdom. I have another lie that we hear almost every day, "Diamonds are very rare" and that an engagement ring should have a diamond and cost 3 months salary. Thank the diamond companies for making that one up.
@@rotrmotr Absolutely! Right along with expensive weddings, these expensive rings could’ve become tens and hundreds of thousands of dollars later on in life. A $30,000 wedding today for 1 day could’ve become $240,000 thirty years later. That’s more than the average 401K amount!!!
When we came to the states in 1978; my father told my mother, ‘’ I won’t be a slave for 30 years’’! He bought a trailer home with a nice lot . My parents then build a home next to it in two years! My parents haven’t paid mortgage or rent since 1985.
He’s right. Your home is a liability. It takes money out of your pocket. So he said buy a smaller house. yes renting will cost you more in the long run, even if you pay pros to fix everything.
@@bobb.2260 Security lmao. I’m a security guard hahaha. Something I never wanted to do but it’s so easy to just sit in front of a mansion and read my books, watch RUclips, etc while checking my portfolio balance. Haha. Worked 22 years for the city prior to that.
Banks CEOs are working. They offer you credit cards and car loans and home loans. You have to work every day to pay off the loans with interest. Interest is paid before the principal. . If you keep working all your future income earnings will go to everybody that you borrowed money from.
For the last 10 years, I refused to buy a primary home and put most of my saving into real estate investments and stocks. I lost big on stocks (2001 tech bubble and 2008 GFC). I finally brought a modest house due to pressure from parents and wife. I love living in my house in an upscale neighborhood. Save and invest and then enjoy life. Now at age 47, my 401k is almost $1 million and my home is $1m and investment properties $3m. Most people doesn’t have discipline and financial knowledge to invest. Buying a modest house is a decent investment.
@@RetireearlyNYC thank you - I agree a primary home is not a good investment. The crazy home price appreciation in the last 4 year is not normal. Due to the shortage in housing supply (in many markets), if one can get a good price and a fixer upper house, it’s a good buy. Home prices will continue to go higher, especially of mortgage rate comes down. Always buy home with leverage and don’t pay off home (if you are young). For retiree, it might make sense to payoff. For younger who wants to grow wealth, leverage and buy buy buy assets.
@@methemonkeyking Hello - I don't payoff my mortgage because I can earn than the mortgage rate of 4% or 5% or 6%. Everyone's situation is a little different. If your mortgage rate is like 3% or 4%, it's free loan (adjusting to inflation). I can easily earn more than 10% return on investment. A quicker way to wealth is not save money but acquire asset (either equity in company or real assets). You need to use those money to earn more money.
@@methemonkeyking This is personal real experience. I am very gratefuly for what I have but my wealthier would be more higher if I acquired more assets 8 years ago. Instead, I payoff the mortgage of my rental property while my friends keeps acquiring more rentals. Instead of buying 1 house with 100% cash (or paying it down with all your cash), they would buy 5 houses with 20% down. Over 10 years, those 5 houses is now woth $700k/house or $3.5m (with outstanding mortgage of $1.5m). The 5 houses total has a $2m equity. My friends would keep cashout refi and buy more. While I keeping one and did not refinance and acquire more. Now the house is $700k all paid off. I would rather have $2m equity 5 houses than 1 house with $700k all paid off. The system is all built in with inflation, over time inflatin will push all asset prices up. Acquire assets and manage them well. My family are very grateful for what we have. There isn't a day pass by where think about this.
@@hotnspicyx you got to be smart, don’t follow the herd, look at the successful people, and learn from them if you want to be rich. But even that won’t guarantee you happiness. Good luck 🍀 . 🇺🇸🗽🇺🇸🗽🇺🇸
@@khem1230 Thanks!! But I must admit that it was a good thing for the ECONOMY at one point to enslave the whole population to this idea. Have people automatically sign up for 30 years plus. To work their asses off in order to maintain it and keep the economy going. It’s just not great for the average person ;) Thanks for dropping by!
"Your home" is your biggest liability. It has been what has kept most people working until they drop dead. Now, it's student loans for the "opportunity" to work in your chosen field. You never actually "own" a house. The govt can always take it away because of unpaid property taxes.
@@the_gilded_age_phoenix8717 Ding ding ding! Yes! And you added another lie they keep telling us- the whole student loan mess. Even worse than the “your home is a great investment” lie. When my kids looked at colleges they both fell in love with Boston U. But at $90k I said no way! I posed it to them this way: “If I were to give you $90 x 4 = $360k at age 21, all you’d have to do is wait about 10 years and you’d be a millionaire. Is $90k for college still worth it?” They agreed it wasn’t worth $90k.
@@RetireearlyNYC I agree that paying all of that money for college is a waste and that you'd be better off putting that money to work for you in other ways. However, the way inflation is working these days. $1 million in 10 years might end up being worth what $360K is today. Surprisingly, that's not really hyperbole.
Don't forget cars. Totally depreciating assets, a whole raft of expenses besides the vehicle itself, and no real choice about having one if you're in a sprawler city (i.e. most of them). Even the lowest-paid workers don't realistically get a choice. There's never been a tax cut that comes anywhere close to the effect of taking that kind of burden off the shoulders of the lowest-paid in the U.S. While Americans get saddled with that, Europeans might pay one-fifth to one tenth that on transit passes and not feel deprived because the transit covers 99% of places they'd want to go. A similar effect occurs with health care and housing: By working together to give ordinary people BETTER choices, Europeans can work 30% less, earn 30% less but suffer nothing like a 30% loss to living standards vs. the U.S. All because Americans are left to fend-for-themselves as individuals across too many expense categories. Europeans KNOW they pay higher taxes but are quick to point out that what's left over really is more discretionary, while with Americans the taxes are only the beginning and what's left over could be a negative number.
America is expensive. Their houses are timber frames with plywood / plasterboard cover. The cheapest material to build a house. Wooden dwellings are not allowed in most parts of the world because of their susceptibility to fire and termite damage.
It's crazy, you work hard to get a mortgage. And then the banks end up selling your mortgage. We are all suckers. Retirement communities are making a killer too.
what shoild be discussed is property taxes. if you pay property taxes- all home owners, then you do not own your home and never will-sam owns the home.
Choose a good state... I live in TN, my $600k house (that I paid $200k for ten years ago) has a property tax of $4k a year. So, yea... you do have to pay property taxes, but NY or any blue state compared to some other states... night and day.
@@YouCanCallMeDon 4k per year is huge money compared to many other countries that do not have any property tax. If you get broke and stop paying utilities, they will cut off water and electricity, but no one will take away your house that is paid off. It is forever yours. Not the case in the US.
The USA is not a nation or a country but rather a vast enterprise created during the advent of capitalism and maintained by profit mania but also supported by individuals asleep and distracted by their daily activities (leisure, work, times of worship, travel, management of family home, regular payment of charges etc.). As I read in one of those comments: "you do not own your property but rather it is your property that owns you".
If you compare the life expectancy and retirement age in America is less than 10 years, country like Australia is about 15 years. also so many people even die before the retirement age, life is suck for many people. I am 55, almost lost my life in a cardiac arrest, not slmost can't work as normal with the heart problem, only have work a bit for low income, and far away to retirement age, that is realy realy suck, if i could live another 10 years, that is very lucky.
What you are saying is true in today’s economy. Back 10-15 years ago, owning a home was a bigger payoff and investment. My new home back then was only $250k, today it doubled in price. Today buying a house or even renting, you are definitely not gaining anything. I fully paid off my house within 15 years because it was doable. Now, there is no way I could even pay the minimum amount because property tax, insurance, and everything else is through the roof. Not many Americans can live with a salary of even 75k. Even with a paid off house I still feel like I’m broken then ever.😂 The American dream is gone and probably not ever coming back in our lifetime. Even investing today is a bust.
This only applies to the state of our current real estate economy. People who bought 10-20 years ago have made ridiculous stupid money because their homes doubled, tripled and even quadrupled in particularly rich areas in california. But yes, this generation is totally screwed.
My Co-op in Forest Hills was bought for $128.500 14 years ago and will now sell for $200K-$210K on the market now. Once I invest $28K to gut reno my bathroom and do some other stuff, that is.
@@guillermoalto4803 yeah the prices have increased dramatically over the last decade. My rate of growth on real estate was wrong. I had the old stats in my head. Good thing you bought when it was cheaper :)
the alternative is to rent...paying for other people's mortgage. I do agree on buying a modest home instead of a McMansion. Also there are ways to pay off a mortgage early and save on the interest.
@@RetireearlyNYC We do need to spend money or the economy (and most of us) will suffer, so it's probably best to spend money in private small businesses. That way, most of the money goes to regular people instead of rich corporate investors.
@@Riconald Nice! But will it be a good investment for anybody else who wants to buy your house? Was it a good investment for you while you owned the house? Did any extra money that you put into the house make 10% per year? Those are the questions. But yes, no doubt having a house and paying off a house are great things. Different questions though ;) Congrats :)
Yeah boomers bought houses for 5k in 1960's while one income was enough to raise a family. How about buying right now when starter homes are 1 million and interest rate is 8 percent? Who can afford that?
@@mikekoerner3992 fine. 1970's were also cheap, one income could support a family. Now making 70k is poverty level in most large cities. I don't even understand how people survive making less than that.
People who pay for a mortgage for 30 years really do get taken for a ride. Gotta pay that mortgage off early. Once it's done your cost of living goes way down.
@@Nikotromus Yes! We got a relatively small house, with 15 year mortgage and paid it off in 11 ;) And then downsized to an apt, paid all cash bc the apt was half the price of the house :)
Pay off mortgage, pay off your car, pay off college loans and somehow save 1.5 million to be able to retire while also paying sky-high rent and taxes. Who is able to do that? One has to be making over 200k per year to pull off all these steps. I did not even mention having kids.
@@00_UU I live in NYC so 2 cops or a cop and a teacher make $200k -$250k. It’s all relative. My parents and in-laws never made more than $70K. Managed to pay off their mortgage in 15 years. Yes they bought when prices were “low” it’s all relative. It was high for their time and rates were 12%. There are ways :)
@@00_UU - It wasn't imposible in the past. However the people who own and control this world want us to be forever renters. They are sealing the door shut as we speak.
@@RetireearlyNYC I refuse to eat ramen and spam for many years just to pay off my mortgage and then I will owe millions for all GI doctors. Cops in NYC make 200k? Nope. Maybe after 15-20 years and getting up to higher ranks, but it is a dirty job with overnight shifts that damage ones health, not to mention damage mental health.
As a single man with no children, it's laughable what people pay in the name of "good schools". Something "nice" is now $500k and everyone in the neighborhood is sweating making payments. Why would I want to spend that kind of money and be a part of that hussle?
I don’t think the American dream is a lie, it still exists and you gotta believe in yourself, the American dream is about the opportunities that this country provides.
Totally agree with you on how so many people think their primary home is an "asset". True that you can build equity, but it doesn't bring you positive cash flow and requires maintenance.
What i have learnt is that for every decision one must have evidence based information. I bought a house for my children stability when they were small and to avoid surprise from the landlord who can wake up one morning and telling you that i am selling my property. I have children at a good school so i decided to buy a house but i paid it off within 2 years and half. I saved a lot of money from the bank. The last flat purchase i paid it cash and my son used it during his university studies. We must always plan and get the right information. Experience is the BEST TEACHER. We should learn to avoid EMOTION and follow the CROWD. One has to be BRAVE to swim against the commoner.
Life is short, we only have 1 life to live. When we die, we can’t bring our money and house to our graves….enjoy our life with what we presently have and be grateful for what we have…..stop living a stressed life trying to pursue the so-called American dream!
Also, due to inflation, 1 million in 30 years is equivalent to 500k today anyway. An apartment is even worse because after 30 years you will end up with an old apartment with high maintenance fees. Land could outpace inflation if the population is increasing, but apartments have very little land so they may just increase with inflation or do worse because people would rather buy new apartments.
@@maxwells2602 Agree and disagree. Depending on whether you live in the burbs vs cities. Apts in cities hold their value or appreciate just as well as houses in cities. And I would say apts appreciate even faster due to the fact that most of them tend to be in the core of the city. Usually the core will appreciate more vs outskirts.
Use to be but not anymore. But you can still live prosperous if you’re willing to work in small town America. In Wyoming, Nebraska, Montana, etc. you can still get by. But where I lived in Southern California, impossible. I still agree with this. Especially, in the Cities.
With housing prices going up, it's just getting people into more debt. It's great to own a home and not worry about dealing with greedy landlords, but home prices have gone up so much, it's becoming absurd. I know a lot of people buy a home and then think of how to make more money to pay their mortgage and other expenses. I don't want to live like that.
I buy 25-30% of market value fully fixed up, minus rehab cost and mostly flip but sometimes keep. If you can do that it’s not too bad and it’s predictable. Real estate is great if you already have good income and just want some tax bennies and long term as an investment. Literally deletes any income I have from the IRS eyes due to the high cost to maintain, depreciation and other costs. These houses are very distressed and people abandon it. We just fix it up and make it livable
@@theindivisible That’s awesome! We had rentals. Kinda looked into flips and commercial. But after a certain number we just decided to call it quits and paid the taxes :)
@@RetireearlyNYC I agree with the home.. It's not an investment.. It could be a little bit of a hybrid if you house hack.. or have multifamily 4plex and live in one unit.. But for regular people buying a home is a "liability"... Buy a small home.. with some land.. and get it paid off is the best thing.. once you don't have anymore debt.. having a home is the best thing that's paid off
Agree. Great video. Was homeowner for 8 years. You either have to house hack or live in low tax state......i lived in a high property tax state. so basically you pay high taxes (rent to county) for the right to make repairs and pay interest lol. I did the math and broke even after 8 years. Buying a house now with 7% interest is a scam lol. 500k house ...20% down payment - that's 400k principal for interest. 28k a year.....taxes 10k a year.....thats 38k a year before opening the door.......Once you open the door, good luck with the repairs and utilities.
Owning your primary residence is infinitely better than renting long term. Just look at the average net worth of homeowners vs non homeowners to see who is better off. Renting for your entire life you will end up with nothing at the end of it.
@@markadler8968 That is correct. Renting usually sucks, although it depends on the numbers. Example, in Taiwan and China, everybody owns a home or 2. Nobody rents. If I were to live there I’d rent for life and invest the difference. A $1M apt might rent for $500/month. While in NYC it would rent for $5000. Depends on the numbers. But this is not a own vs rent debate. It simply defines what is an investment :)
@@RetireearlyNYC I'm in Cook County Illinois and I live in a 719 sqft house built in 1906 probably worth 250k - 300k and my property taxes are 9k ! I'm a self employed carpenter and I find it a financial hardship .
@@kwaichangcaine8234 Wow that is outrageous!! We used to pay about the same for a $1.1M house here in NYC and we thought that we crazy. But we also pay income taxes to the city and state. So that equals it out I guess
My colleague and I debated over this topic awhile back. The goal of home ownership is to build equity, create nest egg and lasting memories. Is the renting alternative more favourable albeit certainly less headache? I think keeping a home longer will diminish your ROI since there is higher maintenance and modernity needs with age to preserve its resale value. A house will appreciate over time but the cost of home ownership eg, interest paid on mortgage, insurance, property tax, utilities and upkeep, can easily offset or even exceed the appreciation. A house is intended for living not speculation.
@@hz240 yes. Your last sentence. On renting, this is not a rent vs buy debate. Merely defining what an investment is and how a home is a terrible investment;)
@@RetireearlyNYC Words of President Xi not mine. -last sentence I have a friend who was expanding his rental business like no tomorrow until Covid hit. The passive income suddenly disappeared with endless headaches. Now busy with tribunals trying to evict tenants who refuse to pay rent. Tenant laws in Canada do not favour landlords. 👎
@@kevincheung436 Thank you. Yeah I did miss a few items. Not easy to do videos on the fly and only do 1 or maybe 2 takes while waiting to pick up my kid from her job. And I’m not gonna learn how to cut and stitch videos together. So it is what it is. But thanks for picking that up :)
This is true 💯 Someone said that 'mort' means death in French and 'gage' means pledge. So mortgage is basically a death-pledge you pay if you want to have a house which makes it a money pit. You don't really own the house.
@@DayeRussell it is not a money pit because you didn't waste your money for nothing, you paid to enjoy certain things. Everything has a monetary value attached to it.
Great video! And if you lose your job during a plandemic, and can't make those payments, you can kiss your house you have been paying on for years GOOD BYE!!! Robert Kiyosaki says a house is not an asset b/c it does not put $ in your pocket, even our definitions of assets have been changed. peace from Poland.
@@RetireearlyNYC I do man! I've spent a lot of time in Asia, I see in the future more Americans moving to SE Asia b/c you can rent an apt. for a few hundred a month, a nice one, in a safe city like Bangkok for example. Good luck with everything, peace from Poland!
@@biglance Yeah I’ve seen those rent prices in Taiwan and China. If I lived there, I would totally never buy. Makes no sense when a $1M condo rents for $500 a month lol. I’d put all my savings right into an index. Take care
The requirement, stress and/or inability to sell a house often prevents people from even CONSIDERING job promotions, career changes, and other major life possibilities. This impact to their finances and quality of life can be immeasurable!
Goes together w owning a home? At some point, you gonna realized so much one person can do at most things? Sure you a one man clown can do a circus show but not everyone.
I sort of agree. I just paid $12,000 a few weeks ago to finish my mortgage off but in the end, the city will always be your landlord whether you have the title or not . I just did it to save some money on interest and also I anticipate the economy may collapse. There are some intangibles that benefit owning your house such as stability and freedom to do what you want with it.
@@MrSanford65 I agree with you. We too paid off our house early. 11 years of a 15 year mtg;) It totally didn’t make sense numbers wise, esp as our rate was 2.65%!! But it was peace of mind for my wife, as we were preparing for her retirement. Having only my income, we felt better to have no mtg. However I wonder which part of the video you disagree with. Lots of people thought I meant “don’t buy a house”. The message was to simply buy LESS house and invest the rest. Thoughts?
@@RetireearlyNYC well the stock market just crashed today at 1000 points. And unemployment is rising plus the debt is now out of reach . I’m 57 so at my age I I believe it was better just to go for stability before the economy becomes more unstable.
The important thing to realize about the American Dream is that it was/is a MARKETING CONSTRUCT that wasn't created out of concern over your happiness. It was created because it just HAPPENS to be the platform that optimizes the most consumption needs, everything from furniture to landscaping to cars. People realize, usually too late, that an awful lot of those expenses don't "pull their weight" toward happiness, but because your expense is someone else's income it creates bad political incentives and a real treadmill. As a lone individual you're told not to question it (you should), and that your power to change it is limited.
You have to live somewhere. Either you're putting money into your own appreciating asset, or you're putting money into someone else's appreciating asset. Thirty years ago, I used to rent. Then I bought a significantly nicer home. I now have an asset that I can sell for a large amount of free cash. If I tried to rent the equivalent for the same period of time (which would have been more expensive.), I'd have nothing to show for it.
@@bbmw9029 Yes buy a home and live in it. Just don’t think of it as an investment. It’s more of a liability. That’s what people end up buying. So buy as little liability as possible if you want to retire earlier is what I’m saying ;)
@@bbmw9029 It IS a huge asset. An asset has value. It IS also a liability. A liability costs you money. It is NOT an investment. An investment makes you money. Run your numbers ;) (There are a few lucky people whose homes turn into investments, ex buying in Brooklyn after the last crash and cashing out a few years later)
@@bbmw9029 Think of it like a classic car. It’s an asset, has great value. It probably will be worth more money one day. But in the meantime it’s costing you money just to keep it and drive it (unless you rent out your beloved asset to somebody else.)
@@RetireearlyNYC Unless there is a huge disparity in the cost to own vs cost to rent (with rent being lower) for the same type of property, owning is ALWAYS a better investment. If you rent, you're paying the mortgage, maintenance, and tax costs of the propery, but you get no deductions for these, and you're paying you landlord a markup. If you own the property, these costs Are either immediately tax deductible, or reduce the property's cost bases for capital gas tax purposes when you sell. And, of course, long term real estate tends to appreciate. A lot of people have retired based on the value of their houses in higher priced areas that they've had for decades. If they rented, they'd have nothing.
While we need all the essentials of life, if you adopt this mentality, you will be content regardless of what the economy does: "a crust of bread and a corner to sleep in"- Paul Lawrence Dunbar. This has seen me through many difficult times when money was so tight that all that I ate for a time was potatoes, bread, and drank water. Other times, I could only eat one meal a day.💪
A house you just live in it. I totally agree. It's not to flip or competing with others for bigger plots and all that... it's just to live in. Great video
@@foreststretchinghawk63 Thanks yeah maybe not lol. It’s usually a one take thing for me while having some spare time waiting for my kids or something haha.
@@bbq8282 Yep!!! I’m so glad I read that 20 years ago. Along with many of his follow up books, and books by his wife and friends on similar topics. But I would never buy his “get rich quick” schemes. :)
You’re right. Rent rent rent. This way when you retire you can cash in your monthly rent receipt for absolutely nothing. You will have paid off my house 10x over. Thanks!
Hate to tell you this, but youre doing it wrong. A property will yield you 3% YoY in equity but with just a 10% down payment that's actually 30% YoY. It's actually the only way to beat inflation. Additionally, you'll need a place to live regardless, so if you work out the math it's much cheaper to freeze your cost of living rather than paying rent. In 5 years, your mortgage will be comparable to nearby apartments. In 10 years it'll be cheaper than anything you can rent. Not to mention the tax benefits and freedom to rent out your space, start a business in your garage, or whatever you can imagine. Homeownership is freedom.
@@demri123 There has never been a 10 year period where real estate hasn't appreciated. That is because the dollar is designed to inflate. Fixed rate debt is the only way to beat inflation. It also feeds back into the system by allowing new loans to be created. This is why banks and government incentivize you to buy real estate. So pick any property in your area, calculate todays payment, and come back to your comment in 5 years and you will understand what I was saying. Real estate ALWAYS feels expensive in the moment. Yes, 7% is relatively high, but the market is calling for higher wages to catch up with inflation. Wages are often the last to increase, but when they do, you'll wish you had locked in whatever you could've afforded back then.
@@RetireearlyNYC Please name one investment that allows you to beat inflation. Speculation in the markets is not an investment because you can't tell me what the value of any stock will be in the future. A mortgage, however, is a leveraged play on inflation and we know exactly what inflation is in the future. So there is very little guess-work in determining equity, paydown, etc. Warren Buffet can't even be certain about stock values, he get's it wrong all the time.
@@jayflaggs Any broad market index will handily beat inflation. 100 year history of doing it. Avg 8-10 per year. And 15% last 15 or so years. Doubled my money every 5 years the last 15. With zero work. And yes I’ve done real estate as well. But what I’m talking about here is simply your home, not a rental property. And yes as you stated, it can be very profitable, if done right. I easily outpaced the S and P during the last decade. But looking back, was it worth the extra headache? Everybody will feel differently. But I don’t think it was worth it. After a certain amount, I’d rather just not work for any more money (current mindless PT job excluded. But I’m just doing it for fun). 😊
@@JC-dt7rn Yep! But many people are afraid of stocks bc they don’t understand them. They think of it as stock picking. They don’t understand that indexing is much safer.
Everyone should own a house to live in. An investment property is one your rent out. If you don't own you through it away in rent and it will go up over time.
father used to say "what's the use of having money if it doesn't make you sleep at night"… Worrying about the stock market. Worrying about the costs of homeownership. I don't agree with many of the responses below that only a sucker rents. I rent. Got sick of paying $30,000 for a new roof. $30,000 for plumbing repairs. Termites, mold damage, hundred other things. Owned six properties. Bought sold, bought sold. The happiest day for me was the day I sold all of these places after the buyers buzz wore off. maybe you save money buying, pay more if your rent pay less if you buy etc. who cares. Do what makes you sleep at night. Some people are not disposed towards being a Nestor. Some of us are nomadic. One year in Los Angeles, the next year in London, the next year in New York City.… Things like that. Can't do that if you own but renting… Pay your lease and then throw the keys on the floor when you leave. Into my 60s now and I love being a renter. All the stressors are taken off of me. Not much in the markets either I'm happy with the 5%. For me the key was to put a couple of million in the bank, and then own nothing. Happily today I can say that's the case. I own nothing. I rent. I'm mobile and I'm nomadic I pay 4000 a month to live in Laguna Beach right now and next year a year in Manhattan for about the same is the game plan. Try doing that if you buy something. We all have our own versions of paradise.
Yes we all have our own versions of paradise :) Well said. And yes there’s nothing wrong with renting. (Also I’ve never mentioned renting. Just defining what an investment is). To each their own. :)
It depends on where you live. I paid off my mortgage in 13 years and 3 months + I have a seven figure retirement account did this on a BlueCollar truck driver income. Renting = Wealth transfer. The landlord’s goal is to get rich (own an income producing asset), that the tenant(s) paid off😊😊
Are you an owner? Since no company driver can bank that much money. On the hand, you had also lived in the truck for many years denying yourself "normal" life. It all depends.
To me, one of the biggest risks of buying a house is ending up with psycho neighbors. You can't just pick up and leave like you could as a renter. You're stuck with it until you decide to sell. Sometimes, it doesn't make sense to buy a house. If you are 50 years old, do you really want to pay a monthly mortgage for the next 25..30 years? By the time you almost pay off the house, you might be dead or only have a short time left to enjoy it. I see the benefit of home ownership as locking in the cost of housing as opposed to rent that only goes higher every year.
@@George-f8h great points. It’s not one size fits all. There are benefits to both. Usually I would side with buying. But it depends on the numbers. And neighbors ;)
Don't underestimate the New York State Property Taxes. You might be paying, over the course of 30 years, multiples of the entire original cost of the house in New York State property taxes.
There certainly were times when a flipper could make money in the past. Flipping a home has become much more difficult in the last 20-25 years. Maybe a general contractor can still rehab buildings in neglected or blighted areas, but it is even a dicey move for those with the skills and labor to do that these days. It's very tough to compete with venture capital nipping at your heels. I am afraid the 'sweat equity' ship has sailed. Too many people on the hunt for fast money.
@@eddenoy321 Yeah there was a time even I was looking at flipping. Early 2010s. NYC. Those prices are gone. But also, this video is only about your primary home, which as you know, is a horrible investment ;)
You have to buy fixer upper homes and fix them yourself if you want to make money on them. Another way you can make money is adding space and renting it out.
Im 42 and still renting at about 3500 a mo. Very glad my wife and I didn't fall into that home ownershit lie. Renting , although pricey is still your best bet. Additionally, you're not tied down for 30 yrs. There are pros and cons to everything. But for those who really think they own their house, keep living in Lala land !
@@Blkshark wow I guess you rent in a big city somewhere? I didn’t mean don’t buy though. I haven’t mentioned renting in any of my videos so far. But yeah it’s a numbers game. If it makes sense, rent. Invest the savings
![OhGeesy x Lefty Gunplay - What It Iz [Official Music Video]](http://i.ytimg.com/vi/L0yzW9t2ixk/mqdefault.jpg)
our family came to Texas from Vietnam (as refugees in 1975). Been here ever since. I am retired now and planned to go back to Vietnam to retire. I have had it with Amerikkka. Owning a house is a SCAM!!! between Property Tax, School Tax, HOA fees, Mortgage fees, Home insurance, maintenance costs. I am DONE !!!!!
@@ttran3444 wow! Sorry you feel that way!!
I thought people move to Texas for the low taxes lol. I guess it’s all relative. Good luck!!
We just booked Vietnam for next March!! Can’t wait!!!!!!!
Good one Johnny. Keep spreading the wisdom. I have another lie that we hear almost every day, "Diamonds are very rare" and that an engagement ring should have a diamond and cost 3 months salary. Thank the diamond companies for making that one up.
@@rotrmotr
Absolutely! Right along with expensive weddings, these expensive rings could’ve become tens and hundreds of thousands of dollars later on in life. A $30,000 wedding today for 1 day could’ve become $240,000 thirty years later. That’s more than the average 401K amount!!!
funeral$$$$$
Don't share that with the wife she only believes her girlfriends...
@@thomasauslander3757
Haha. Gotta marry a girl who has similar goals ;)
Yep, we’ve been lied to so much about so many things.
Rent, property taxes, healthcare, and the cost of living, is killing people. When you retire you going to end up spending more money.
@@rhondahopkins4366 Yes. Buy less house. Invest the rest for your retirement
Stop voting for Democrats. Plain and simple.
Add in kid’s tuitions for college, it is called American hell for middle class.
@@bili8888 yeah gonna do a college cost video soon. It’s crazy
You don't own the house, the house owns you!
@@micheleemcdaniel389 yep! And the bank and govt and utilities companies. Never ending ;)
Yep, just wait and see what happens if you stop paying property taxes on the house so called OWN
The Jooce@@RetireearlyNYC
So you can't use it to reinvest in your sure things? Man look at the flip over number?
System is totally rigged...
@@FLAC2023
Yes. A lot of it is rigged. For the rich, by the rich, and the corporations. And our politicians take it. Legalized corruption.
@@RetireearlyNYCThey call it “lobbying” lol.
@@pickywolf2728
Yep!! Lmao. Legalized bribery
@@RetireearlyNYC I used to call it modern slavery. but now its just very obvious.
so why care
When we came to the states in 1978; my father told my mother, ‘’ I won’t be a slave for 30 years’’! He bought a trailer home with a nice lot . My parents then build a home next to it in two years! My parents haven’t paid mortgage or rent since 1985.
@@j.rothchild173 your dad was a smart man!!
He’s right. Your home is a liability. It takes money out of your pocket. So he said buy a smaller house. yes renting will cost you more in the long run, even if you pay pros to fix everything.
@@JordanSheppard-fi4po
Somebody gets it ;)
If you're renting the landlord is fixing
@@passportandbeer that’s true too.
You don't see rich people work anymore.... they have stocks...
@@FLAC2023
Correct they don’t have to work. But many do choose to work. I work part time for very wealthy people. They all choose to work. :)
@@RetireearlyNYC what do you do?
@@bobb.2260
Security lmao. I’m a security guard hahaha. Something I never wanted to do but it’s so easy to just sit in front of a mansion and read my books, watch RUclips, etc while checking my portfolio balance. Haha.
Worked 22 years for the city prior to that.
@@RetireearlyNYC awesome that sounds like the perfect part-time gig tbh, perfect with your experience too
Banks CEOs are working. They offer you credit cards and car loans and home loans. You have to work every day to pay off the loans with interest. Interest is paid before the principal. . If you keep working all your future income earnings will go to everybody that you borrowed money from.
For the last 10 years, I refused to buy a primary home and put most of my saving into real estate investments and stocks. I lost big on stocks (2001 tech bubble and 2008 GFC). I finally brought a modest house due to pressure from parents and wife. I love living in my house in an upscale neighborhood. Save and invest and then enjoy life. Now at age 47, my 401k is almost $1 million and my home is $1m and investment properties $3m. Most people doesn’t have discipline and financial knowledge to invest. Buying a modest house is a decent investment.
@@wzeng02
You put most of your money into investments outside of the primary home. Smart :)
@@RetireearlyNYC thank you - I agree a primary home is not a good investment. The crazy home price appreciation in the last 4 year is not normal. Due to the shortage in housing supply (in many markets), if one can get a good price and a fixer upper house, it’s a good buy. Home prices will continue to go higher, especially of mortgage rate comes down. Always buy home with leverage and don’t pay off home (if you are young). For retiree, it might make sense to payoff. For younger who wants to grow wealth, leverage and buy buy buy assets.
@@wzeng02: “Don’t pay off your home?” why? You are a multi-millionaire, so I believe you know what your talking about.
@@methemonkeyking Hello - I don't payoff my mortgage because I can earn than the mortgage rate of 4% or 5% or 6%. Everyone's situation is a little different. If your mortgage rate is like 3% or 4%, it's free loan (adjusting to inflation). I can easily earn more than 10% return on investment. A quicker way to wealth is not save money but acquire asset (either equity in company or real assets). You need to use those money to earn more money.
@@methemonkeyking This is personal real experience. I am very gratefuly for what I have but my wealthier would be more higher if I acquired more assets 8 years ago. Instead, I payoff the mortgage of my rental property while my friends keeps acquiring more rentals. Instead of buying 1 house with 100% cash (or paying it down with all your cash), they would buy 5 houses with 20% down. Over 10 years, those 5 houses is now woth $700k/house or $3.5m (with outstanding mortgage of $1.5m). The 5 houses total has a $2m equity. My friends would keep cashout refi and buy more. While I keeping one and did not refinance and acquire more. Now the house is $700k all paid off. I would rather have $2m equity 5 houses than 1 house with $700k all paid off. The system is all built in with inflation, over time inflatin will push all asset prices up. Acquire assets and manage them well. My family are very grateful for what we have. There isn't a day pass by where think about this.
The American dream is the American nightmare.
Yes because of the Federal Reserve FIAT currency…..
Not for me, viva USA 🇺🇸🗽🇺🇸🗽🇺🇸🥳🥳🥳
@ccr7712 keep.dreaming. most people have already awaken from their dream.
@@hotnspicyx you got to be smart, don’t follow the herd, look at the successful people, and learn from them if you want to be rich. But even that won’t guarantee you happiness. Good luck 🍀 . 🇺🇸🗽🇺🇸🗽🇺🇸
@ccr7712 i guess you dont understand the point here. Its not about being smarty pants, its about the fake the lie and the dishonesty in the system.
100% agree. I don't know why people don't know this or waking up.
@@homegirlsuccess
People are repeatedly told a certain message and most of us believe it without verifying for ourselves
Best video ever!!! Completely agree. The system (governments) wants you to be a slave.
@@khem1230
Thanks!!
But I must admit that it was a good thing for the ECONOMY at one point to enslave the whole population to this idea. Have people automatically sign up for 30 years plus. To work their asses off in order to maintain it and keep the economy going. It’s just not great for the average person ;)
Thanks for dropping by!
"Your home" is your biggest liability. It has been what has kept most people working until they drop dead. Now, it's student loans for the "opportunity" to work in your chosen field. You never actually "own" a house. The govt can always take it away because of unpaid property taxes.
@@the_gilded_age_phoenix8717
Ding ding ding!
Yes! And you added another lie they keep telling us- the whole student loan mess. Even worse than the “your home is a great investment” lie.
When my kids looked at colleges they both fell in love with Boston U. But at $90k I said no way! I posed it to them this way:
“If I were to give you $90 x 4 = $360k at age 21, all you’d have to do is wait about 10 years and you’d be a millionaire. Is $90k for college still worth it?” They agreed it wasn’t worth $90k.
@@the_gilded_age_phoenix8717
I’m glad somebody gets it lol. Good for you ;)
@@RetireearlyNYC I agree that paying all of that money for college is a waste and that you'd be better off putting that money to work for you in other ways. However, the way inflation is working these days. $1 million in 10 years might end up being worth what $360K is today. Surprisingly, that's not really hyperbole.
Yep. And it's always been like that anyway. Which is why, even if one has fully paid house, they still need to live within their means.
Don't forget cars. Totally depreciating assets, a whole raft of expenses besides the vehicle itself, and no real choice about having one if you're in a sprawler city (i.e. most of them). Even the lowest-paid workers don't realistically get a choice. There's never been a tax cut that comes anywhere close to the effect of taking that kind of burden off the shoulders of the lowest-paid in the U.S. While Americans get saddled with that, Europeans might pay one-fifth to one tenth that on transit passes and not feel deprived because the transit covers 99% of places they'd want to go. A similar effect occurs with health care and housing: By working together to give ordinary people BETTER choices, Europeans can work 30% less, earn 30% less but suffer nothing like a 30% loss to living standards vs. the U.S. All because Americans are left to fend-for-themselves as individuals across too many expense categories. Europeans KNOW they pay higher taxes but are quick to point out that what's left over really is more discretionary, while with Americans the taxes are only the beginning and what's left over could be a negative number.
America is expensive. Their houses are timber frames with plywood / plasterboard cover. The cheapest material to build a house. Wooden dwellings are not allowed in most parts of the world because of their susceptibility to fire and termite damage.
Change that to nyc and big cities
Property tax is the biggest part.
@@sui-yu-er-an it’s a big part yes. And certainly the longest part lol.
Like Carlin said, "... you gotta be asleep to believe it".
@@artvandelay7236
Yes. And Carlin ruffled a lot of feathers. Bc most people are sleep ;)
Keep reminding me
It's crazy, you work hard to get a mortgage. And then the banks end up selling your mortgage. We are all suckers. Retirement communities are making a killer too.
@@rhondahopkins4366 it’s keeps the economy going is what it does, tying us all to 30-50 years of working to pay it off. So buy less :)
"That's why they call it the American Dream, because you have to be asleep to believe it." -George Carlin
They called “ the American dream “ because it’s only a dream not the reality
what shoild be discussed is property taxes. if you pay property taxes- all home owners, then you do not own your home and never will-sam owns the home.
@@Emphasis213
That is in the video ;)
Been saying this for years Americans are so stupid for thinking they own the house your still renting it you just get perks from having it.
Choose a good state... I live in TN, my $600k house (that I paid $200k for ten years ago) has a property tax of $4k a year. So, yea... you do have to pay property taxes, but NY or any blue state compared to some other states... night and day.
@@YouCanCallMeDon 4k per year is huge money compared to many other countries that do not have any property tax. If you get broke and stop paying utilities, they will cut off water and electricity, but no one will take away your house that is paid off. It is forever yours. Not the case in the US.
As a landlord, I approve this message. As a home owner, I do not. Where I live, the math is in favor of home ownership over renting.
@@supra8544
I never mentioned renting. But yes sometimes it does favor renting. Depends on the numbers. Most people don’t understand ;)
This not about renting. It's about owning a house and pro and con of it.
7:41 😂
I feel you
@@janitoronfire haha!
The USA is not a nation or a country but rather a vast enterprise created during the advent of capitalism and maintained by profit mania but also supported by individuals asleep and distracted by their daily activities (leisure, work, times of worship, travel, management of family home, regular payment of charges etc.). As I read in one of those comments: "you do not own your property but rather it is your property that owns you".
@@paul-emilehilaire7993 how true that is!
We don't have 30 years left. We barely have 10.
I have early alsyhmers
I believe 10 at the most as well.
@@JuanCatalan-sl6ts you can still spell good though so that's something.
If you compare the life expectancy and retirement age in America is less than 10 years, country like Australia is about 15 years. also so many people even die before the retirement age, life is suck for many people. I am 55, almost lost my life in a cardiac arrest, not slmost can't work as normal with the heart problem, only have work a bit for low income, and far away to retirement age, that is realy realy suck, if i could live another 10 years, that is very lucky.
Johnny dropping gems here. Salute to you sir. Subbed!
Thanks !
A house is a place to live. I couldn’t agree more.
What you are saying is true in today’s economy. Back 10-15 years ago, owning a home was a bigger payoff and investment. My new home back then was only $250k, today it doubled in price. Today buying a house or even renting, you are definitely not gaining anything. I fully paid off my house within 15 years because it was doable. Now, there is no way I could even pay the minimum amount because property tax, insurance, and everything else is through the roof. Not many Americans can live with a salary of even 75k. Even with a paid off house I still feel like I’m broken then ever.😂 The American dream is gone and probably not ever coming back in our lifetime. Even investing today is a bust.
@@richlikeg3722 I’ll agree that it’s tougher than before. :)
This only applies to the state of our current real estate economy. People who bought 10-20 years ago have made ridiculous stupid money because their homes doubled, tripled and even quadrupled in particularly rich areas in california. But yes, this generation is totally screwed.
It's not a lie , it's a dream just out of reach for millions of dreamers.
@@timmyjones1921 ignore the click bait title lol
You are absolutely correct.....housing is too overpriced....invest your money elsewhere....
@@thylacine1004 overpriced AND too expensive to maintain
I feel your pain . Everything is corrupt.
@@Rexboy1566 don’t just go by the title ;)
@@Rexboy1566 but thanks for dropping by :)
The American dream itself moves around in circles just like everything else.
@@ZombieK-q3h yes that too lol. And different people have different definitions of that dream :)
My Co-op in Forest Hills was bought for $128.500 14 years ago and will now sell for $200K-$210K on the market now. Once I invest $28K to gut reno my bathroom and do some other stuff, that is.
@@guillermoalto4803 yeah the prices have increased dramatically over the last decade. My rate of growth on real estate was wrong. I had the old stats in my head.
Good thing you bought when it was cheaper :)
WORDS OF WISDOM RIGHT THERE.
@@andresmattos7541
Thanks. Appreciated!
the alternative is to rent...paying for other people's mortgage. I do agree on buying a modest home instead of a McMansion. Also there are ways to pay off a mortgage early and save on the interest.
@@HoJackson2011 yes but smaller home. Not necessarily rent :)
I’m been thinking that way also. Thank you for clarifying.
@@gachauni9083 you’re welcome! I hope you save lots of money :)
The social culture teaches everyone they need a fancy home, car and every gadget there is. This is to keep people working and spending.
@@ubiquitousdiabolus yes. It’s also good for the govt and economy. So our whole culture, govt, etc just keeps pushing it.
@@RetireearlyNYC We do need to spend money or the economy (and most of us) will suffer, so it's probably best to spend money in private small businesses. That way, most of the money goes to regular people instead of rich corporate investors.
Well, I bought my house cheap in 1999. And it’s already paid off and I’m very happy.
@@Riconald
Nice! But will it be a good investment for anybody else who wants to buy your house? Was it a good investment for you while you owned the house? Did any extra money that you put into the house make 10% per year? Those are the questions.
But yes, no doubt having a house and paying off a house are great things. Different questions though ;)
Congrats :)
Yeah boomers bought houses for 5k in 1960's while one income was enough to raise a family. How about buying right now when starter homes are 1 million and interest rate is 8 percent? Who can afford that?
sorry mor boomers were teens or kids in the 60s
@@mikekoerner3992 fine. 1970's were also cheap, one income could support a family. Now making 70k is poverty level in most large cities. I don't even understand how people survive making less than that.
Johnny, bingo. Well said. It’s all the hidden costs. You truly have to run the numbers.
Yes! Instead of repeating the lies, just run the numbers! Numbers don’t lie!
I could not agree more with you! A house it's a terrible investment unless you renter it out.
@@1alfonsorico
Yep! Good topic for another video ;)
Oh really?? Try renting when you are in your 60's.
@@quychang4471
We’re not talking about renting a house for ourselves ;)
"The reason they call it the American Dream is because you have to be asleep to believe it." - George Carlin, RIP legend.
People who pay for a mortgage for 30 years really do get taken for a ride. Gotta pay that mortgage off early. Once it's done your cost of living goes way down.
@@Nikotromus
Yes!
We got a relatively small house, with 15 year mortgage and paid it off in 11 ;)
And then downsized to an apt, paid all cash bc the apt was half the price of the house :)
Pay off mortgage, pay off your car, pay off college loans and somehow save 1.5 million to be able to retire while also paying sky-high rent and taxes. Who is able to do that? One has to be making over 200k per year to pull off all these steps. I did not even mention having kids.
@@00_UU
I live in NYC so 2 cops or a cop and a teacher make $200k -$250k. It’s all relative.
My parents and in-laws never made more than $70K. Managed to pay off their mortgage in 15 years. Yes they bought when prices were “low” it’s all relative. It was high for their time and rates were 12%.
There are ways :)
@@00_UU - It wasn't imposible in the past. However the people who own and control this world want us to be forever renters. They are sealing the door shut as we speak.
@@RetireearlyNYC I refuse to eat ramen and spam for many years just to pay off my mortgage and then I will owe millions for all GI doctors. Cops in NYC make 200k? Nope. Maybe after 15-20 years and getting up to higher ranks, but it is a dirty job with overnight shifts that damage ones health, not to mention damage mental health.
As a single man with no children, it's laughable what people pay in the name of "good schools". Something "nice" is now $500k and everyone in the neighborhood is sweating making payments. Why would I want to spend that kind of money and be a part of that hussle?
@@jacobstrouble6631 you are absolutely correct. And in the NYC area, something “nice” is well above $1M.
I don’t think the American dream is a lie, it still exists and you gotta believe in yourself, the American dream is about the opportunities that this country provides.
@@boutiquemimi7176 yes I agree
It’s just click bait;)
Totally agree with you on how so many people think their primary home is an "asset". True that you can build equity, but it doesn't bring you positive cash flow and requires maintenance.
@@AkinoriKobo it’s usually just a hole that you throw money into lol. So make it a small hole. 😃
Buying is better than renting in most cases.
@@Victor-it6bv true. But not a buy vs rent video. Just saying buy less :)
@@RetireearlyNYC I honestly rather live in a van, but i have a family to take care of. Lol
Happy new subscriber here! Keep telling the truth! Thanks Johnny 👍🏾
@@littlemissroxie thanks for watching!
Depends on who you are.....America is a winners take all society.
@@bobbyallen4555 yeah unfortunately true in so many areas of our culture.
What i have learnt is that for every decision one must have evidence based information. I bought a house for my children stability when they were small and to avoid surprise from the landlord who can wake up one morning and telling you that i am selling my property. I have children at a good school so i decided to buy a house but i paid it off within 2 years and half.
I saved a lot of money from the bank.
The last flat purchase i paid it cash and my son used it during his university studies.
We must always plan and get the right information.
Experience is the BEST TEACHER. We should learn to avoid EMOTION and follow the CROWD. One has to be BRAVE to swim against the commoner.
Life is short, we only have 1 life to live. When we die, we can’t bring our money and house to our graves….enjoy our life with what we presently have and be grateful for what we have…..stop living a stressed life trying to pursue the so-called American dream!
Life is not short anymore as people now live up to 90. If you have nothing you will have a miserable life
I want a friend like Johnny NYC...thanks man!
@@anonanon7235 YW! I hope you found the info useful :)
People are waking up!
@@BROS_Guzz
I hope so ;)
I agree 100% our investment is gone. The middle class is screwed and on top of that we get taxed the most. American dream is a joke.
@@peted7687 it’s harder than ever. Just ask our younger Americans. However it still can be done :)
Also, due to inflation, 1 million in 30 years is equivalent to 500k today anyway. An apartment is even worse because after 30 years you will end up with an old apartment with high maintenance fees. Land could outpace inflation if the population is increasing, but apartments have very little land so they may just increase with inflation or do worse because people would rather buy new apartments.
@@maxwells2602
Agree and disagree.
Depending on whether you live in the burbs vs cities. Apts in cities hold their value or appreciate just as well as houses in cities. And I would say apts appreciate even faster due to the fact that most of them tend to be in the core of the city. Usually the core will appreciate more vs outskirts.
Use to be but not anymore. But you can still live prosperous if you’re willing to work in small town America. In Wyoming, Nebraska, Montana, etc. you can still get by. But where I lived in Southern California, impossible. I still agree with this. Especially, in the Cities.
@@Aluminatihusker it’s tougher, but still very possible. :)
And cities is where you make the big money ;)
With housing prices going up, it's just getting people into more debt. It's great to own a home and not worry about dealing with greedy landlords, but home prices have gone up so much, it's becoming absurd. I know a lot of people buy a home and then think of how to make more money to pay their mortgage and other expenses. I don't want to live like that.
@@Enchanteralle
Agreed. Don’t get dragged into a 30 year sentence aka as much mortgage as you can afford
I buy 25-30% of market value fully fixed up, minus rehab cost and mostly flip but sometimes keep. If you can do that it’s not too bad and it’s predictable. Real estate is great if you already have good income and just want some tax bennies and long term as an investment. Literally deletes any income I have from the IRS eyes due to the high cost to maintain, depreciation and other costs.
These houses are very distressed and people abandon it. We just fix it up and make it livable
@@theindivisible
That’s awesome! We had rentals. Kinda looked into flips and commercial. But after a certain number we just decided to call it quits and paid the taxes :)
@@theindivisible
This video was for a HOME. So I’m not saying all real estate is bad. But a home is a bad investment, if any investment at all lol
@@theindivisible
It’s on my list to do a video on how to make money in real estate as an average person :)
@@RetireearlyNYC I agree with the home.. It's not an investment.. It could be a little bit of a hybrid if you house hack.. or have multifamily 4plex and live in one unit..
But for regular people buying a home is a "liability"... Buy a small home.. with some land.. and get it paid off is the best thing.. once you don't have anymore debt.. having a home is the best thing that's paid off
@@theindivisible
Agree 100%. But you knew that ;)
Agree. Great video. Was homeowner for 8 years. You either have to house hack or live in low tax state......i lived in a high property tax state. so basically you pay high taxes (rent to county) for the right to make repairs and pay interest lol. I did the math and broke even after 8 years. Buying a house now with 7% interest is a scam lol. 500k house ...20% down payment - that's 400k principal for interest. 28k a year.....taxes 10k a year.....thats 38k a year before opening the door.......Once you open the door, good luck with the repairs and utilities.
Owning your primary residence is infinitely better than renting long term. Just look at the average net worth of homeowners vs non homeowners to see who is better off. Renting for your entire life you will end up with nothing at the end of it.
@@markadler8968
That is correct.
Renting usually sucks, although it depends on the numbers.
Example, in Taiwan and China, everybody owns a home or 2. Nobody rents. If I were to live there I’d rent for life and invest the difference. A $1M apt might rent for $500/month. While in NYC it would rent for $5000. Depends on the numbers.
But this is not a own vs rent debate. It simply defines what is an investment :)
This not about renting.he say buy a home you can afford.
Very good advice, respect 🫡
Property Taxes are killing the American Dream 😮
@@kwaichangcaine8234
It’s part of it. But it’s unavoidable. So we try to minimize it by living in a smaller home.
@@RetireearlyNYC I'm in Cook County Illinois and I live in a 719 sqft house built in 1906 probably worth 250k - 300k and my property taxes are 9k ! I'm a self employed carpenter and I find it a financial hardship .
@@kwaichangcaine8234
Wow that is outrageous!! We used to pay about the same for a $1.1M house here in NYC and we thought that we crazy. But we also pay income taxes to the city and state. So that equals it out I guess
My colleague and I debated over this topic awhile back. The goal of home ownership is to build equity, create nest egg and lasting memories. Is the renting alternative more favourable albeit certainly less headache?
I think keeping a home longer will diminish your ROI since there is higher maintenance and modernity needs with age to preserve its resale value. A house will appreciate over time but the cost of home ownership eg, interest paid on mortgage, insurance, property tax, utilities and upkeep, can easily offset or even exceed the appreciation.
A house is intended for living not speculation.
@@hz240 yes. Your last sentence.
On renting, this is not a rent vs buy debate. Merely defining what an investment is and how a home is a terrible investment;)
@@RetireearlyNYC Words of President Xi not mine. -last sentence
I have a friend who was expanding his rental business like no tomorrow until Covid hit. The passive income suddenly disappeared with endless headaches. Now busy with tribunals trying to evict tenants who refuse to pay rent. Tenant laws in Canada do not favour landlords. 👎
4:58... Also, the insurance...
@@kevincheung436
Thank you. Yeah I did miss a few items. Not easy to do videos on the fly and only do 1 or maybe 2 takes while waiting to pick up my kid from her job. And I’m not gonna learn how to cut and stitch videos together. So it is what it is. But thanks for picking that up :)
This is true 💯 Someone said that 'mort' means death in French and 'gage' means pledge. So mortgage is basically a death-pledge you pay if you want to have a house which makes it a money pit. You don't really own the house.
You are paying interest to stay in your house. Otherwise you could live in the streets or in an apartment.
@@syz911 It's still a money pit
@@syz911 We don't have to agree
Ouch wow. How true that is lmao
@@DayeRussell it is not a money pit because you didn't waste your money for nothing, you paid to enjoy certain things. Everything has a monetary value attached to it.
Great video! And if you lose your job during a plandemic, and can't make those payments, you can kiss your house you have been paying on for years GOOD BYE!!! Robert Kiyosaki says a house is not an asset b/c it does not put $ in your pocket, even our definitions of assets have been changed. peace from Poland.
@@biglance
Thanks! Hello from NYC. And it’s refreshing to hear from those who actually get it ;)
@@RetireearlyNYC I do man! I've spent a lot of time in Asia, I see in the future more Americans moving to SE Asia b/c you can rent an apt. for a few hundred a month, a nice one, in a safe city like Bangkok for example. Good luck with everything, peace from Poland!
@@biglance
Yeah I’ve seen those rent prices in Taiwan and China. If I lived there, I would totally never buy. Makes no sense when a $1M condo rents for $500 a month lol.
I’d put all my savings right into an index.
Take care
The requirement, stress and/or inability to sell a house often prevents people from even CONSIDERING job promotions, career changes, and other major life possibilities. This impact to their finances and quality of life can be immeasurable!
Gotta live somewhere. So own but buy modesty.
@@JJJ5.7
So simple a message. But not many get it ;)
You sir are definitely one wise man
In my opinion, American dream is running own business to make money. For me owning home is not a dream at all.
@@mrfreddo461 yep
There are different dreams :)
Goes together w owning a home? At some point, you gonna realized so much one person can do at most things? Sure you a one man clown can do a circus show but not everyone.
I sort of agree. I just paid $12,000 a few weeks ago to finish my mortgage off but in the end, the city will always be your landlord whether you have the title or not . I just did it to save some money on interest and also I anticipate the economy may collapse. There are some intangibles that benefit owning your house such as stability and freedom to do what you want with it.
@@MrSanford65
I agree with you. We too paid off our house early. 11 years of a 15 year mtg;)
It totally didn’t make sense numbers wise, esp as our rate was 2.65%!! But it was peace of mind for my wife, as we were preparing for her retirement. Having only my income, we felt better to have no mtg.
However I wonder which part of the video you disagree with. Lots of people thought I meant “don’t buy a house”.
The message was to simply buy LESS house and invest the rest.
Thoughts?
@@MrSanford65
Oh and I don’t agree with the economy collapsing. What makes you say that?
Thanks for dropping by :)
@@RetireearlyNYC well the stock market just crashed today at 1000 points. And unemployment is rising plus the debt is now out of reach . I’m 57 so at my age I I believe it was better just to go for stability before the economy becomes more unstable.
Oh man if you only held on to that Brooklyn property !!
@@byron9630 haha. I’ve checked. Hadn’t gone up that much since 2019. But the stock market HAS. ;)
The important thing to realize about the American Dream is that it was/is a MARKETING CONSTRUCT that wasn't created out of concern over your happiness. It was created because it just HAPPENS to be the platform that optimizes the most consumption needs, everything from furniture to landscaping to cars. People realize, usually too late, that an awful lot of those expenses don't "pull their weight" toward happiness, but because your expense is someone else's income it creates bad political incentives and a real treadmill. As a lone individual you're told not to question it (you should), and that your power to change it is limited.
@@myfriendgoo2816 yes! It was designed to keep you slaving away for 30 years of consumption. It’s good for the economy ;)
You have to live somewhere. Either you're putting money into your own appreciating asset, or you're putting money into someone else's appreciating asset. Thirty years ago, I used to rent. Then I bought a significantly nicer home. I now have an asset that I can sell for a large amount of free cash. If I tried to rent the equivalent for the same period of time (which would have been more expensive.), I'd have nothing to show for it.
@@bbmw9029
Yes buy a home and live in it. Just don’t think of it as an investment. It’s more of a liability. That’s what people end up buying. So buy as little liability as possible if you want to retire earlier is what I’m saying ;)
@@RetireearlyNYC I don't know anyone for whom a house is a liability. It's usually a huge asset.
@@bbmw9029
It IS a huge asset. An asset has value. It IS also a liability. A liability costs you money. It is NOT an investment. An investment makes you money. Run your numbers ;)
(There are a few lucky people whose homes turn into investments, ex buying in Brooklyn after the last crash and cashing out a few years later)
@@bbmw9029
Think of it like a classic car. It’s an asset, has great value. It probably will be worth more money one day. But in the meantime it’s costing you money just to keep it and drive it (unless you rent out your beloved asset to somebody else.)
@@RetireearlyNYC Unless there is a huge disparity in the cost to own vs cost to rent (with rent being lower) for the same type of property, owning is ALWAYS a better investment. If you rent, you're paying the mortgage, maintenance, and tax costs of the propery, but you get no deductions for these, and you're paying you landlord a markup. If you own the property, these costs Are either immediately tax deductible, or reduce the property's cost bases for capital gas tax purposes when you sell. And, of course, long term real estate tends to appreciate. A lot of people have retired based on the value of their houses in higher priced areas that they've had for decades. If they rented, they'd have nothing.
Johnney thanks it is refreshing to hear simple truths we tend not to know
@@klee06able
You’re welcome! Share the message if you like it :)
work 25 yrs to pay a house and ur lucky to live to see it paid off
Yup, you’re absolutely 1000% right
Thanks Johnny!
@@joeyparra3937
My pleasure!
While we need all the essentials of life, if you adopt this mentality, you will be content regardless of what the economy does:
"a crust of bread and a corner to sleep in"- Paul Lawrence Dunbar.
This has seen me through many difficult times when money was so tight that all that I ate for a time was potatoes, bread, and drank water. Other times, I could only eat one meal a day.💪
@@jeffreyjackson5229 absolutely!
Its not a lie , problem is it died decades ago 😂😅
It’s definitely harder to attain that dream today than 30 years ago. But still very possible if you live below your means :)
@RetireearlyNYC live In tijuana mexico and work in san diego , thats what I do
A house you just live in it. I totally agree. It's not to flip or competing with others for bigger plots and all that... it's just to live in. Great video
@@Rjisawake
You get it;)
Good for you :)
You didn’t talk about property taxes
@@foreststretchinghawk63
Thanks yeah maybe not lol. It’s usually a one take thing for me while having some spare time waiting for my kids or something haha.
Insurance is the thing you can't control
Yep a big Bug scam 😒 Thanks John great video 📹
@@frederickbartholomew6290 thanks for dropping by :)
Rich dad said,” the house you live in is not an asset. It is a liability!”
@@bbq8282
Yep!!! I’m so glad I read that 20 years ago. Along with many of his follow up books, and books by his wife and friends on similar topics. But I would never buy his “get rich quick” schemes. :)
You’re right. Rent rent rent. This way when you retire you can cash in your monthly rent receipt for absolutely nothing. You will have paid off my house 10x over. Thanks!
@@Aldo-d6z not a rent video lol.
Hate to tell you this, but youre doing it wrong. A property will yield you 3% YoY in equity but with just a 10% down payment that's actually 30% YoY. It's actually the only way to beat inflation. Additionally, you'll need a place to live regardless, so if you work out the math it's much cheaper to freeze your cost of living rather than paying rent. In 5 years, your mortgage will be comparable to nearby apartments. In 10 years it'll be cheaper than anything you can rent. Not to mention the tax benefits and freedom to rent out your space, start a business in your garage, or whatever you can imagine. Homeownership is freedom.
In previous times, yes.
These days its debatable. If you live in CA or NY, and you pay 1.5M @7% interest, it might not be worth it
@@demri123 There has never been a 10 year period where real estate hasn't appreciated. That is because the dollar is designed to inflate. Fixed rate debt is the only way to beat inflation. It also feeds back into the system by allowing new loans to be created. This is why banks and government incentivize you to buy real estate. So pick any property in your area, calculate todays payment, and come back to your comment in 5 years and you will understand what I was saying.
Real estate ALWAYS feels expensive in the moment. Yes, 7% is relatively high, but the market is calling for higher wages to catch up with inflation. Wages are often the last to increase, but when they do, you'll wish you had locked in whatever you could've afforded back then.
@@jayflaggs
Not the only way. And there are certainly other ways, which include less work or zero work :)
@@RetireearlyNYC Please name one investment that allows you to beat inflation. Speculation in the markets is not an investment because you can't tell me what the value of any stock will be in the future. A mortgage, however, is a leveraged play on inflation and we know exactly what inflation is in the future. So there is very little guess-work in determining equity, paydown, etc. Warren Buffet can't even be certain about stock values, he get's it wrong all the time.
@@jayflaggs
Any broad market index will handily beat inflation. 100 year history of doing it. Avg 8-10 per year. And 15% last 15 or so years. Doubled my money every 5 years the last 15. With zero work.
And yes I’ve done real estate as well. But what I’m talking about here is simply your home, not a rental property. And yes as you stated, it can be very profitable, if done right. I easily outpaced the S and P during the last decade. But looking back, was it worth the extra headache? Everybody will feel differently. But I don’t think it was worth it. After a certain amount, I’d rather just not work for any more money (current mindless PT job excluded. But I’m just doing it for fun). 😊
Stocks gave historically 2x house appreciation …. Facts
@@JC-dt7rn
Yep! But many people are afraid of stocks bc they don’t understand them. They think of it as stock picking. They don’t understand that indexing is much safer.
I began to understand this at 10 years old....lol!
American nightmare is real than ever.
@@TheKkpop1 yes many people having a hard time. But the dream is still achievable. I hope you achieve your dream
Everyone should own a house to live in. An investment property is one your rent out. If you don't own you through it away in rent and it will go up over time.
@@Traveler-PKK
Yes. It’s just a place to live in. Not an investment. Unless you rent it out AND can cash flow.
You are 100% Correct ✅ 😊
father used to say "what's the use of having money if it doesn't make you sleep at night"… Worrying about the stock market. Worrying about the costs of homeownership. I don't agree with many of the responses below that only a sucker rents. I rent. Got sick of paying $30,000 for a new roof. $30,000 for plumbing repairs. Termites, mold damage, hundred other things. Owned six properties. Bought sold, bought sold. The happiest day for me was the day I sold all of these places after the buyers buzz wore off. maybe you save money buying, pay more if your rent pay less if you buy etc. who cares. Do what makes you sleep at night. Some people are not disposed towards being a Nestor. Some of us are nomadic. One year in Los Angeles, the next year in London, the next year in New York City.… Things like that. Can't do that if you own but renting… Pay your lease and then throw the keys on the floor when you leave. Into my 60s now and I love being a renter. All the stressors are taken off of me. Not much in the markets either I'm happy with the 5%. For me the key was to put a couple of million in the bank, and then own nothing. Happily today I can say that's the case. I own nothing. I rent. I'm mobile and I'm nomadic I pay 4000 a month to live in Laguna Beach right now and next year a year in Manhattan for about the same is the game plan. Try doing that if you buy something. We all have our own versions of paradise.
Yes we all have our own versions of paradise :)
Well said. And yes there’s nothing wrong with renting. (Also I’ve never mentioned renting. Just defining what an investment is).
To each their own. :)
this dude is 100 %
Finally somebody speaks my mind on it! Buy only with cash if you could otherwise you are modern slave for big corporations!
@@tseringnamo
Absolutely! Or with as much downpayment as possible. Don’t fall into the debt trap. Thanks for dropping by :)
It depends on where you live. I paid off my mortgage in 13 years and 3 months + I have a seven figure retirement account did this on a BlueCollar truck driver income.
Renting = Wealth transfer. The landlord’s goal is to get rich (own an income producing asset), that the tenant(s) paid off😊😊
Are you an owner? Since no company driver can bank that much money. On the hand, you had also lived in the truck for many years denying yourself "normal" life. It all depends.
To me, one of the biggest risks of buying a house is ending up with psycho neighbors. You can't just pick up and leave like you could as a renter. You're stuck with it until you decide to sell. Sometimes, it doesn't make sense to buy a house. If you are 50 years old, do you really want to pay a monthly mortgage for the next 25..30 years? By the time you almost pay off the house, you might be dead or only have a short time left to enjoy it. I see the benefit of home ownership as locking in the cost of housing as opposed to rent that only goes higher every year.
@@George-f8h great points. It’s not one size fits all. There are benefits to both. Usually I would side with buying. But it depends on the numbers. And neighbors ;)
The American Dream. It's called a dream, and you have to be asleep to believe it. -George Carlin
U nailed it.
@@andydo725 thanks :)
Don't underestimate the New York State Property Taxes.
You might be paying, over the course of 30 years, multiples of the entire original cost of the house in
New York State property taxes.
@@Orwellian-One yep can’t get away from taxes. All we can do is try to lessen them
There certainly were times when a flipper could make money in the past. Flipping a home has become much more difficult in the last 20-25 years. Maybe a general contractor can still rehab buildings in neglected or blighted areas, but it is even a dicey move for those with the skills and labor to do that these days. It's very tough to compete with venture capital nipping at your heels. I am afraid the 'sweat equity' ship has sailed. Too many people on the hunt for fast money.
@@eddenoy321
Yeah there was a time even I was looking at flipping. Early 2010s. NYC. Those prices are gone.
But also, this video is only about your primary home, which as you know, is a horrible investment ;)
You have to buy fixer upper homes and fix them yourself if you want to make money on them. Another way you can make money is adding space and renting it out.
The key is buying a simple house to save money for retirement.
If u r filthy rich then buy what ever u want
@@michaeltphan correct!
Its the American Nightmare now ~
@@cancel.lgbtq.6892 for far too many unfortunately.
Im 42 and still renting at about 3500 a mo. Very glad my wife and I didn't fall into that home ownershit lie. Renting , although pricey is still your best bet. Additionally, you're not tied down for 30 yrs. There are pros and cons to everything. But for those who really think they own their house, keep living in Lala land !
@@Blkshark wow I guess you rent in a big city somewhere? I didn’t mean don’t buy though. I haven’t mentioned renting in any of my videos so far. But yeah it’s a numbers game. If it makes sense, rent. Invest the savings
I thought I was the only one on the planet who thought so
No lol. It’s just the majority don’t think like us ;)