this is so smart. It is so beautiful to live in a house in the middle of nowhere than live in apartments in the city where culture, knowledge, and science are generated. where you get any care in no time. not wasting whole your life in a car to drive you little kid to every class in the car. is this a joke? there are a dozen reasons to choose one over another and I'd avoid a person who gives such an arrogant quote.
@@dmitriyrabochiy4475t This generalisation is crazy. I grew up in a house in a village: I always walked to school and had most businesses one might need (barbershops, vet, grocery stores, clinics, etc) at walking distance from my house.
6 дней назад
@@dmitriyrabochiy4475what is tummy is that you gave an arrogant comments on that quote.
@@jenti422 Yes, MOVE USDA Rural Home Loan Less than 35K population Less than $119K Family income I did my Landlord gave me $10K to break the 30 year lease (15 years left on rent control) In 2010 houses on my street sold for ~$40K, $10K down, $180/mo
Dave really teaches lessons on humility more than anything else. Don’t spend or buy homes to impress your friends or society, those who really like you don’t care.
exactly. only leeches would care about how much you make and you can attract them by being so shallow to show off things you didn't initially want to buy but did just to show off. I've had friends of all socioeconomic standings growing up when I was little - wealthier than me or less wealthier than me. And I never looked at their socioeconomic standing as a big thing.
@@laur-unstagenameactuallyca1587 they are called gold diggers! How many super models date homeless guys? How about zero. You just woke up now into a red pill world.
It was the American dream to own a home. It make since in the 1950. The government passing ton of laws to make own a home more affordable. The problem is that most people are not financially responsible. That why we have Dave .
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
Anticipate rising home prices due to inflation, potential economic fluctuations, and Federal Reserve actions, emphasizing the need for expert financial advice amid uncertainties.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. Thanks.
You can literally buy a condo 3 times cheaper in Maryland than in DC and about 15 percent cheaper than Virginia. Montgomery County or Prince George County are excellent.
Rented for 5 years at my place and was hit with a surprise non-renewal notice by an evil, spiteful landlord who wanted retribution for past complaints and to hike up the rent again. At least with paying a mortgage, you have more stability and security. Renters are at the mercy of landlords and their whims. I've spent $80,000 on rent. And in one month I will be homeless. It is a COLOSSAL waste of money. I have half a mind to return to OTR trucking or saving up for an RV.
It’s a waste of money. I agree 💯. Working or being in a job you’re constantly being pressured by your boss and coworkers. I can just live in a mini van for 1 years and save up to 100,000 a month. W point. The guy responded to has no idea how hard it’s to earn money.
@@TheIdentifiedPatient Have fun wasting money with 7% interest rates, record high home prices, etc. Also have fun replacing that HVAC in the summer and roof in the winter.
@@matthewphillips5483 not all properties are single-family homes. If you own a condo or otherwise a unit in a multi unit structure, you’re insulated from surprise fees. They’re rare due to the property management, and when you do get hit with big expenses, they’re spread out across the owners (a special assessment), and if the board is well run, it’s usually no more than a few thousand USD. Do not rent. I own two condos and I’ve lived with my parents until I was 26 (I’m 28). Renting is a waste of money.
$2k is really not bad for Arlington at all. Renting in metro DC is quite a bit cheaper than buying considering any decent house in Fairfax or Arlington county is $750k minimum and taking into account closing costs, repairs, insurance, HOA, condo fees (if necessary), property tax, and opportunity costs of taking money out of the market for a large down payment. You end up paying $3500 a month for a house with maybe a few hundred going to equity.
I’m first place was in Arlington back in 2012. I was paying $1600 for 1 bedroom. Cheapest place I could find. Thought I was making out for that area (Clarendon). I was working full time and going to school full time. Told myself I wanted to remove any stress that wasn’t completely necessary. One stressor being commuting/getting around between work and college. Looking back I still wonder how much of that might have been me trying to keep up with the Jones’s. The pretentiousness of that area is nauseating.
@@stefanossmitty3318 But they're still paying too much. They're newlyweds. They don't need more than one bedroom. They can get that OUTSIDE of Arlington.
@@user-wq5ws1qs7x a mortgage will always be cheaper than rent however once you consider the roof leaking, the water heater, HVAC or any little thing going wrong the scale tips so fast it’s crazy.
Rent, pay off your debt, then start investing like crazy. Ignore the hype of owning a home. Learn how to invest well and you will outperform investing in a home.
@@tompain2751 In reality, what matters is the % of the income you spend on rent, not the amount. Some places have higher costs of living alongside higher earnings for the same job. For example, in my field stipends in New York for a Physics Phd programs are higher than Floridas, but cost of living in some of New York's school is so high you end up with less money each month. But it depends in the area and the school, you do not know until you do the math comparing potential earnings to expenses.
I was able to first buy in my late 20's but it didn't feel right so I waited till my late 30's and I am glad I did. I felt 100% at peace when I walked into my home and knew it was time. If it doesn't feel right that is your intuition telling not to so listen to it.
I never owned a home and am in my late 30s. I'm almost ready for the home chapter in my life but I'm able to do so debt free and you are right. It is a different feeling feeling ready vs not feeling ready.
If you go to a restaurant, and eat a nice meal, did you 'waste' your money, even if the food is now gone? No because you got something you needed and enjoyed. If you rent you're not 'wasting' money because you get a roof over your head and a place to live.
A lot depends on if you have outstanding bills and how much you spent. If you have bills past due date and you have to put the meal on the credit card, yes, you wasted money.
I see your point but not the best analogy. Maybe "go to a doctor for a physical" instead of "go to a restaurant for a nice dinner" would have been better.
That is true. However, it can be a great investment depending where you live. In some areas it is cheaper to own a home than it is to rent. Sadly tho, there are a lot of people that cannot qualify for a house loan.
I bought my house when I was 25. It was tough living paycheck to paycheck. Rent would have been $300 cheaper. But 20 yrs later my home was paid off. The same place I’d looked at renting is now $2500 a month, it was $700 when I bought. My house is worth 4x what I bought it for.. I just pay $2200 a yr in property taxes. It allowed me to semi-retire at 49, and I put the money I would have paid in mortgage payments to income generating investments. What worked for the area I live in, won’t work for all areas. Real estate is based on location. I bought close to a beach in California. In a new housing community. Now that it’s all built out, the demand to live there is HIGH. But supply there may be 3 houses for sale in a 5 square mile area. There’s no more open land so no where to build.
The thing about buying a house is initially it sucks because the mortgage payment is the same if not more than renting. HOWEVER, as time goes on (generally speaking) rent goes up, and mortgage payments stay the same. That means theoretically if you rent a place for 10 years, you may start out paying $800, but at the end of those 10 years you are likely paying $1200+. Someone who bought a house nearby may start out paying $1000/m, but 10 years later they would still be paying $1000/m. *You can also sell the house*. *You can also live rent-free when the house gets paid off.*
@@annietribble3062 Yes here in Dallas, or anywhere in Texas. It’s so much cheaper to buy than rent. The mortgage of 2000 sq ft is cheaper than some 1 bedrooms here
Renting always gets a bad wrap, but when you factor in house maintenance, taxes, closing costs, insurance, time downpayment isn't in the market, etc, it's not always the golden goose it's seen to be (especially when you're young and might move around). Home ownership certainly can be profitable, but it's important to find the right time!
And if you get a mortgage, you’re going into debt. 4% over 30 years on a 300k home = 215k in interest. You’re giving the bank $215k for the privilege of living in a house. You don’t own it, the bank does until you pay it off. I’m dumbfounded by the amount of people who don’t understand this. They only see a lower monthly payment and that’s it. 🤦♂️
@@JohnnyD5 Haha I googled the difference and Merriam-Webster stated "Bad wrap is considered wrong and is best saved for referring to wraps and tortillas". You learn something new everyday!
@@YaYousef5 do you know in 30 years , your home would worth a lot more than 300k ? I bet it will be doubled. Also, while renting, you putting away at least 15k a year. 30 year = 450k into dumpster . Furthermore, the rent price is not consistence, 15k a year will go up by ~3-5k every 10 years.
A lot of housing in America is overpriced for what things are worth. In Seoul, Korea a couple can still find affordable and decent living place for 400-600 a month, making roughly the same as American counterparts in terms of their occupation. That city is also far better in terms of public transportation. American cities need to get it together.
I’m 52 years now and we did this when we were your age. Dave’s advice worked for us and paid off. I was always so confused as to why we couldn’t afford all the extras that our neighbors had, until years later and saw their bills came due and they lost their stuff and we got to move up.
Or our poor friend whose husband passed away and she didn't know he had taken out a second mortgage on their home and spent the cash! Now she is elderly and can't retire! But they sure looked good when her husband was alive!
There are so many more expenses to owning a home then people think. I wish everyone was more open about all the extras you have to pay for. People might be a little more content renting until they’re financially stable
I don’t agree. If you don’t over extend yourself and actually save for when these problems happen. You can’t sell all those years of renting when you want to move on. I went from a two room in a triplex to a 1300 sqft home for half the price of rent. So for half of what I was paying I get an investment that will contribute to our future. I have friends that bought at a home at 18 years old. Ya it was hard for them but the homes where later used to move farther forward.
People aren’t more open about the true costs because that would highlight that their decision to own was in fact just as expensive as renting. Therefore they would be wrong, and people don’t like being wrong.
I understand the renting concept. But i bought a dump when i was 19. Mortgage was $400-$600 less then renting in the area, and that included insurance and taxes. Knowing that i set aside that same 400 every month to take care of expenses/repairs. Now 10 years later. My house is paid off debt free and renovations have been done. All with just the money i set aside a month from the difference between mortgage and rent.
I bought a house for $700 a month. It's small, but for an apartment the same size it'd be 1200 or more. Renting made no sense for me. Rent is sky high right now. Buying might make more sense.
Homeownership will definitely take all your money. Over the years I've replaced the furnace, hot water heater, roof, exterior door, windows, multiple appliances, electrical and plumbing work (including water main to my house), as well as tons of other projects. Eventually though, your house payment will be lower than renting. The value of my house hasn't changed much over twenty years but rent prices have continued to rise. Once its paid for you can then work for a lot less or retire. Your property taxes continue to rise they will still be much lower than renting.
We rented for 3 years before buying a home. People criticized us but 🤷🏻♀️ people will always have something to say. So glad we waited until we were actually ready.
Sometimes it’s cheaper to rent than to pay interest on a 30 year mortgage if you can’t put down a large down payment. On a 30 year term at 4% interest you’d be paying 165,000 in interest on $35000 loan. Yikes
I am 35, single, and making 75k/year with zero debt and I STILL am not ready to own a home mostly because I hate the state/city I live in and plan on moving within 5 years. I also hate mowing/shoveling snow with a passion.
My parents' generation. Bought homes. Low prices, low or no taxes. No income taxes some places. One car often. no student loans. No extra spoiled kids. World now is COMPLETELY different
If you don’t have enough money to buy a house outright you pay interest on the mortgage. That interest is effectively rent. It allows you to live in a house you don’t own until you have paid off the mortgage. Of course it’s a little more complicated than that because you take on the liabilities of the property including maintenance, insurance and either profit or loss in the value from the moment you “buy” it. So the much quoted idea that rent is dead money is a myth. If you rent you are paying the owner of property for the use of the property. If you buy you are paying interest to the lender for the use of the money. Interest = rent.
Yup, property tax. It's more like "licenced permission to claim something". And if you dont pay the tax, the government has the authority to take the home you "own", whereas if you dont pay the rent the landlord will have you evicted. I know what taxes are for and all, but why tax somebody to own something? It's like it's just a subscription. Sad truth is you own nothing when you live under capitalism. Renting makes sence as it's not your house technically because it's on your landlord's property. So your paying to Barrow the place you live. Simple and understanding enough.
Yeah totally agreed, Dave says Arlington is expensive but don't think he really understands...$2000 a month for 2 gets you an ok townhouse in the area lol...he had great advice though...pay those loans and buy the house when you're ready
@@bangladeshirealtor if it's modest, a townhouse is definitely doable for 2k, though I agree with your sentiment... Arlington is just incredibly expensive. MD will always be superior imo for working in DC area with the best living conditions that doesn't kill the bank
I'm 30 and I rent and I love it. I don't have to worry about spending money on repairs or maintenance. I pay $550 a month for a 2 bed/1 bath in Oklahoma.
Consider also, that you could go a different route than buying a full big house. What about a bungalo or a smaller, cheaper place to live that you could still manage to have a partner and child live in comfortably. Look into cheaper housing options that you can own. What about living in a caravan somewhere (if possible based on location etc), rather than renting? It could be way cheaper than renting a flat.
Back in the 80's I rented an apartment in Arlington Texas. Now in 2021 they call Jerry's World. It cost me $290.00 a month no bills paid. Now it is sec 8.
Here's how the insurance company makes a profit. Makes it more expensive Warranty = Avg cost of maintinence + OUR EMPLOYEES SALARY + OTHER COSTS + PROFITS FOR SHAREHOLDERS
@@DXmYb Bought a home, FHA required Home warranty. Moved in (REO), made a list of non working items. Water heater, oven, garbage disposal, dishwasher, over range microwave Cost of Move-in warranty, $452
I manage a hardware store. You wouldn't believe how many times I hear, " I don't need to fix it correctly, just good enough to sell." It's always with roofing, concrete work, and plumbing 😂
"Because they're not gonna be forgiven and you'll be saddled with them the rest of your life and they are the major impediment between you and building wealth. That's the bottom line." 2 years later it seems prophetic. Don't trust empty promises and get a head start on your debt.
On the plus side, you can report your rent to the credit bureaus, or you can get a ledger of payments from the bank for an independent mortgage underwriting company. Renting is not that bad because it gives you a representation of how well you pay your bills.
I'm glad I didn't follow this advice. At 23, we bought our first home in December of 2018 for $250k (new build, so maintenance was minimal). Our rent at our apartment was $1200 a month, and our mortgage was $1600. We just sold our house for $390k, and used the proceeds of our sale to pay off all our debt, PLUS we put a huge down payment on our next house. We will have the new house paid off in about 10 years. Oh and our old apartment complex is renting the same apartment we were in for $1750 a month now......
Very happy you got a great break in life. Unfortunately I half agree with you and with Dave. If you are in the position that your home will be an excessive amount over your rent. You should keep your head down and save a little longer. If you have the funds to actually buy a home and think you should spend that on student loans first, you're wrong. Spend that on buying a place that will give you a roof over your head. Worse case scenario in life you end up with just that one home, BUT it's your home.
This is really bad logic. It's like saying extended warranties are a good deal because you were one of the few people who broke down. Bad decisions do not become good decisions just because sometimes things work out.
Dave's advice left out what he usually says which is don't buy a house until you've paid off debt (school and credit cards and cars) and have your 3-6 month emergency fund in the bank. THEN you can buy house within your budget. So Tim, I assume you were in good financial position with good income to buy that house at 23?
With the housing prices nowadays. It might be difficult to purchase a home. With renting, it might be beneficial if you’re using Chexy to pay for rent using your credit card and earn points from it. It’s a win win if you know how to utilize your credit card and have the right card for it. Pay it off every month, repeat.
@@greenmean230 you are probably right but for anyone buying house after 2018 my rent is cheaper than their property tax. BTW my landlord got the house in 1970s. This is the stupidity of American capitalism which is capitalize the gain and socialize the loss.
@@La_sagne where were those apartments? In Seattle (the only place my family can make a decent living) the cheapest rent is $1500 not including utilities or electric.
It's like that literally everywhere with rent now, not even just "nicer" areas. I've looked at apartments in several different cities, and a 1/1 is always $1200 minimum, nicer apartments are up to 15
@@brendanpeck9780 We own a rental in a small college town, and charge $875 for a 2 bed/2 bath updated home. It's all about location. Most places are not like CA or VA.
Cheff Jeff best advice is just do it. I have 2 rentals and bought them at 22 and 23, don’t get into unless you are handy. And don’t buy dumps. But if you have the money saved to buy one I say dive in. You may find you don’t enjoy being a landlord, talk to a realtor in your area. Buy something fairly move in ready
@@cheffjeff5908 do real estate wholesaling to build capital so then you can invest and pay down rentals while having renters pay as well, so you’ll double down on the payment and start your passive income stream faster
I'm 38 from 4 years I'm debt-free, and all my colleagues are still either renting or painting mortgages. It is a great feeling to stand in the middle of the shop and say to myself: "There is nothing here that I can't afford"
House comes with taxes, insurance costs if you dont have 20% down, repairs (renovations, upgrades, boiler, water heater, plumbing), cleaning costs, yardwork. It is definitely not an asset
Manny your points are all valid.. but Owning a home is an asset / investment because you can be in an equity position and sell your home for a profit. Your points are valid because you listed liabilities against a mortgage. Bottom line- don’t buy a house until it’s the right time 😀
It’s absolutely an asset. The appreciation typically exceeds the maintenance costs - by a long shot. And when you get a 15 year mortgage, the home pays off in 15 years or less and your monthly payment goes away which means increased cash flow and increased ability to build wealth because a huge chunk of money is freed up every month to invest. When you rent, the monthly payment never goes away and it increases every year. Chris Hogan’s book Everyday Millionaire shows the the biggest commonality among millionaires with a net worth of $1-5 million is wealth built in their 401k/mutual funds, and a paid off home.
Thats what i think. I personally think if you can save up enough for your 20% down to cover PMI, and you are still able to afford the payment without issues, then you are building equity instead of renting and throwing the money away. However i do think renting to get an emergency fund saved up and your 20% down is a good idea.
True..if this is the case ..then renting is better option..when things break down..its fixed by property management like pipe bursting or sewage problems ..its fixed by landlord..if we buy its out of our pockets
@@blissessentials524 that's if you have a decent landlord that gets around to fixing things. I've seen too many that neglect their rental properties, renters having to beg their landlords to get things fixed.
I used to live in Arlington about 17 years ago. Back then we were paying $1400 a month for an average 2 bedroom 1 bath apartment in the "hood"/ South Arlington. "Hood" in qoutes because even back then Arlington was too expensive to have a proper hood. More like lower working class with immigrants. $2000 a month rent today in Arlington is not crazy. Arlington is basically DC and you're going to pay to live in that area.
I live in this area and Arlington is one of the more expensive neighborhoods. They can get a decent one bedroom apartment in a different area, still close to DC for $1200-1500
As someone who lives in DC, $2k is actually pretty good. I think the average rent for a 1 bedroom is $2,500-2,800. Saw a new building advertising 1 bedrooms “starting” at 3k.
Levi Yea, the apartment actually followed the standard, “You need to make 3X the rent to qualify”. I was in high school at the time. My parents rented it. My dad was deployed so it was just my mom and I for a year and I was a senior so we stayed so I could graduate w/o messing up my credits and risk having to repeat senior year. But that’s why people “put up” with it. I’m sure my neighbors all had good gov’t or gov’t contractor jobs.
My daughter foolishly purchased a very expensive condo, because her manipulative boyfriend demands the best of everything - especially if she's the one that pays for it. I found the exact same condo, within the same area, for less than half the price. Since buying the condo, they suddenly married. She no longer speaks with me. I don't think I want to leave any inheritance to her, because he just wasted hundreds of thousands of dollars. I worked all my life saving the majority of that money while supporting her. She worked really hard to get a doctorate degree and it's all gone to waste. This entire situation has left me very broken-hearted. As hard as you work to save money, you have to work even harder not to let master con artists take it away from you.
Old water heater and undisclosed water damage to flooring under the fridge the seller generously left for us. 2000 to fix both. Also home inspector also did the pest control for the house a month before we closed. What a coincidence
The issue some find is that paying rent is more expensive than a monthly mortgage at least thats the case in the UK. E.g. where I live, the rent is easily £1200-1300 for a 2-3 bedroom House in an average area. On the other hand, monthly payments for mortgage is around £500-£600 for a 3 bedroom house. This is why many who do have a deposit will straight leave renting to buy a house and you can sell the house and retain some money from the sale of the house.
Just got married this year and I was in an uber one day and a man asked if I paid alot to live at the apartment. I said, "no I only pay 800 for a two bedroom." He was like "wow you think thats cheap? Your better off just buying a house here." And I was so disgusted but what he said especially knowing im young. But also the fact that someone can sit there and act like a house isn't a commitment. I rather pay $800 a month or less, pay off debt and save for my dream home somewhere in this country than buy a house in my hometown that I dont like with a 15 year commitment "just because its cheaper"
I know of someone who bought a house, invested time and money renovating it, and diligently paid the mortgage for 26 years. Sadly, illness struck, leading to the loss of their home. The devastating blow sent the homeowner into a deep depression, and within a year, they passed away. It's a heartbreaking reality that often goes unspoken; we're accustomed to hearing about "forever homes," but life's twists can sometimes shatter those dreams.
Buy a home, rent it out and live off rice and beans. You will be making money from the rent while also making money from your regular 9 to 5 job. That double whammy of income plus owing an asset (the house) is the secret to building wealth.
Buying a house is like a new toy... until the AC needs to be fixed.. you need a new fridge... and suddenly your car breaks down. Renting may be higher but it’s not ALL going to the landlord..you’re paying for the labor on all the stuff that goes wrong that you don’t have to worry about. Your rental payment helps to maintain the property, yard work, insurance, and that 10 million dollars they owe Home Depot and the Construction Co.
when the ac or water heater goes out you still have a roof over your head, if your rent goes sky high and can't pay you are evicted and are now homeless. Rather live a house with no AC or hot water than on the street.
Renting is better than negative equity. Also, being able to invest funds into assets that are gaining value quicker than property is a benefit of renting.
Almost nothing in existence grows equity faster than a home in the 100+ years we've tracked it, for most families a home is the ONLY way they improve their quality of life in a shorter amount of time than decades
@@jtowensbyiii6018 Literally lots of investments grow faster than a home. Just buy an SP500 index and you'll make about 8% every year (on average). Most homes don't make even half of that.
Rent is like throwing your money in a fire, but I would rather live in an apartment for a year or two to save up for a nice house than to buy a cheap house that I don't like
@@ttr8141 Yeah, it's terrible. It's a bit harder for me to leave California since I'm a "baby lawyer" and am only barred in California, but I am seriously considering taking the bar somewhere else.
Come to Free America! Conductors are taking trains out nightly. Leave the Democommunist Occupied Zone. The sponge is in the microwave. The Lexus is double-parked.
It is genuinely a waste of money, when you could be repaying the mortgage to get the value of the asset back where as u have nothing to get back for renting.
Have you factored in the interest on a mortgage, maintenance costs, taxes etc vs. the comparitive returns if investing in stocks instead? On average stock market wins, UNLESS you have super low interest
Not to mention, people love to forget about the amount of interest, insurance and property taxes they pay every year on the home they own. I own multiple rental properties and rent the house I live in well below my means. It works great for my wife and I.
I rent, I’m a single girl who doesn’t wasn’t the burden of maintaining a home and constant repairs and cost and I don’t need much space. Renting makes more sense for me. I’d rather invest and save other ways. Also, I would feel unsafe in a house with multiple entrances and first floor
Totally agree w you!!! Peace of mind is more impt. than "owning" a property. As well as feeling safe and having the support of a landlord. Different people, different circumstances, different lifestyles, different needs. This is the advise I needed 16 years ago when i bought a big home just for myself 😥 Lesson learned. I'll also considerate if i would like to live there long term... Being a home owner is not for all.
@@bluesky2026 yes!!! Often I’ve found everyone pushes single people (to marry 😃) and to buy a home so much, they forget sometimes buying isn’t the best choice financially or for their lifestyle. Additionally, I don’t need much space. A two bedroom resells between but I don’t need it.
They have good advice but they are out of touch with reality. They don't understand how bad inflation is. Prices are not the same as when they were in their 20s.
Youre absolutely 💯. Prices have literally quadrupled in some areas for houses but not the salaries. At least in the medical profession (im an RN) It was great for people who invested back then but for the younger generations it really sucks. Something has got to give, just don't know when.
The prices might be high but if you think you're spending too much on rent, a house for the same amount will always end up being more because people go crazy buying furniture and decorating etc etc and then they don't take into account utilities, taxes, insurances, closing costs and inspections or if anything has to be fixed. Our neighbors sewerline had to be replaced and it was $10,000. Things like that must be fixed with a house and you don't get a choice. It isn't a fixed payment every month like with rent.
if you think renting is wasting money just remember this. You are RENTING the money you borrow when you buy a house. So you are renting either way. If you buy a 300k house on a 30 year loan you might pay as much as 600k in RENT on the 300k you borrowed in the loan. That rent is called interest, but it is a rental fee. You rented the money. So yes renting is wasting money, but if you are just going to replace renting a house with renting money you haven't fixed anything. You are not avoiding rent. You are still wasting money on rent.
Needed to hear this. I’m a recently single 28 year old male in FL who makes $104k base/year and have been feeling like I need a home. I currently have $26k saved for that home (obviously have a lot more saved in other investments) but have felt that pressure that I need it. Seeing my friends buying homes is making me a bit jealous; However, trying to stay patient and keep saving so that I can buy a better home in a few years without going house broke.
You want to Buy and give to People In the Long Run or for Yourself you can be pretty cheap when you have no debt rather than Rent what is an anmount you need to pay forever you are there.
I Rather Buy or Buy Stocks than Let the Money get used up by Rent or Expensive Holidays. Now is the Time to keep the Money going in your Control like 10 Years and later spend some.. The move you Save // Invest the Better you have it Long term.
$2000/month is a ton to be spending on rent. I've been living with my GF (now fiance) in a 800 sqft 1 bedroom apartment for $1200/month in an expensive area in my state. Now we're debt free, getting married and moving into a 2200 sqft townhouse next month that we own.
Congratulations I’m curious about where you live though. You’re not getting a 1 bedroom in the DC area for less than $2,000 so what they’re paying now is pretty good. Average 1 bedroom costs around $2,500 on average here.
@@stefanossmitty3318 Not in DC. We're in a southern state. We make $175k/year combined gross income. People who suffer in high cost of living areas thinking it's worth it because of higher salaries are getting scammed
@@pey7777 ok, that’s wonderful! I live in DC and do Ok and wouldn’t say I’m getting scammed. I like having a Metro station a block away (I still have a car) and being within 40 minutes of 3 major airports is a bonus since I love to travel, not to mention cultural attractions and a lot of diversity. I grew up in a rural area and I’ve learned that I’m definitely a city guy. Congrats again and wishing y’all lots of happiness.
I got my 20k loans discharged because of the ITT fraud scam. But I also didn't make much money back then, here I am 20 years later debt free. I also agree with Dave you should go aggressive to pay those off since you can afford it. Some of us aren't so lucky.
People need to factor in cost of living when deciding where to work and live. A $130k income DC while having $80k in student loans and $2000 rent will leave you struggling to make ends meet. God forbid they have a kid or two.
I bet they’ll probably have a kid before their student loans are close to paid off since they just can’t wait to start a family. Then they’ll justify buying a home because their apartment didn’t have enough space. Then for the second child, they’ll probably justify a loan for constructing an extension to make room for the second baby.
When having a child, Dave recommends going in stork mode and piling up cash while paying minimum on debts, so if they are following Dave's advice, they'll have money for the child before child is born. Having a child while paying off debt isn't impossible with proper planning. You can go back to gazelle intensity on your loans after baby is born and you know what your monthly expense is with child included.
Truth! 15 years ago I tried to talk my sister into moving to Arizona. She was a teacher in SoCal and her husband a business manager. That business was opening in our town and they needed a manager. He could have gotten that job. She told me that the salary fur teachers was half of what it was where she lived. Great except yip are skipping that a nice house here (this was 15 yrs ago) was 200 k and a nice place there was over a M. Then there’s taxes which are higher in California. Fast forward to today and she is still renting. She won’t consider buying a town home even though they were down to 400k when the market collapsed. It has to be a house. She has set herself up to be miserable forever. Meanwhile rent has gone from 2k to 3.5k a month where she lives and she realizes at some point she won’t be able to even rent. Watching people make mistakes is so painful
Trust me it’s not a waste,own a condo time to buy new appliances,lousy whirlpool range fails less then a year,what a joke!have to pay for all this stuff that won’t last 5 years and have to do it all over again! Point is it’s best to rent!
I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me, retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income-generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@ScottBrown-b7o Having an investment adviser is the best way to go about the market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
I was confused as well. I think Dave had some sort of mental blunder here. They are spending less than 20% of their take home pay on rent. That is immensely low. Rent is not their problem.
If I can finance a mortgage with monthly payments roughly equal to my current rent payments, why shouldn't I buy a house? Yes, I understand that property tax and maintenance will also add to the cost, but I value the freedom of being able to have complete control over my own property. Even if it takes me 2 extra years to pay off loans, I think it would fit my value structure better to buy the house.
Then thats a lifestyle decision, not an investment decision. Which is fine. But if your goal is to build wealth, you really have to calculate and with current interest rates its very unlikely you'll come ahead with the house. unless you're very lucky and buy in an area that becomes the new silicon valley after you bought your house.
Work with a trusted real estate agent when you are ready to buy: bit.ly/3CWZGsS
😂😆 Lol
"I'd rather move from an apartment to a house than a house to an apartment," -- Best aunt quote ever
this is so smart. It is so beautiful to live in a house in the middle of nowhere than live in apartments in the city where culture, knowledge, and science are generated. where you get any care in no time. not wasting whole your life in a car to drive you little kid to every class in the car. is this a joke? there are a dozen reasons to choose one over another and I'd avoid a person who gives such an arrogant quote.
@@dmitriyrabochiy4475t
This generalisation is crazy. I grew up in a house in a village: I always walked to school and had most businesses one might need (barbershops, vet, grocery stores, clinics, etc) at walking distance from my house.
@@dmitriyrabochiy4475what is tummy is that you gave an arrogant comments on that quote.
“I wasn’t wasting any money renting, because I wasn’t ready to purchase a home.”
That’s it.
$100K home, USDA, less than 0% down (negative equity loan, 0.35% for the life of loan)
@@aolvaar8792 there is no $100,000 house here California
@@jenti422 Yes, MOVE
USDA Rural Home Loan
Less than 35K population
Less than $119K Family income
I did my Landlord gave me $10K to break the 30 year lease (15 years left on rent control)
In 2010 houses on my street sold for ~$40K, $10K down, $180/mo
@@aolvaar8792 I'm confuse! We are going to move where?
@@aolvaar8792 That was long time ago. Maybe now it's more expensive.
Dave really teaches lessons on humility more than anything else. Don’t spend or buy homes to impress your friends or society, those who really like you don’t care.
My bumper sticker says, my other car is a 401k.
@@justinacase2623 that’s awesome lol
exactly. only leeches would care about how much you make and you can attract them by being so shallow to show off things you didn't initially want to buy but did just to show off. I've had friends of all socioeconomic standings growing up when I was little - wealthier than me or less wealthier than me. And I never looked at their socioeconomic standing as a big thing.
@@laur-unstagenameactuallyca1587 they are called gold diggers! How many super models date homeless guys? How about zero. You just woke up now into a red pill world.
It was the American dream to own a home. It make since in the 1950.
The government passing ton of laws to make own a home more affordable.
The problem is that most people are not financially responsible. That why we have Dave .
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!
Anticipate rising home prices due to inflation, potential economic fluctuations, and Federal Reserve actions, emphasizing the need for expert financial advice amid uncertainties.
I need a guide so i can salvage my port-folio due to the massive dips and come up with better strategies. How can one reach this advisor?
'Mary Ebi Ahearn’ is the manager I use. Just research the name. You'd find necessary details to set up an appointment.
I greatly appreciate it. I'm fortunate to have come upon your message because investing greatly fascinates me. I'll look her up and send her a message. You've truly motivated me. Thanks.
The Jones’s in DC are nuts!!! Truer words never spoken. Funny and spot on.
You can literally buy a condo 3 times cheaper in Maryland than in DC and about 15 percent cheaper than Virginia. Montgomery County or Prince George County are excellent.
*Democrats
Christmas Eve I will be debt free after paying off 135k in student loans in 23 months! Best day of my life!!
God bless you, sir!
How much did you pay off per month?
@liveyourbestlife 1 Thank you! I'll be a tad upset if they forgive all loans in the next few months. Refund! lol
You go boy, I mean Sir.
nice
they're killing it, especially for 23
@9INE PLANETS I assume from your saying 'was', this is no longer the case. Best not to compare your situation with theirs. ;)
"Spending everything you make just to look like you're not broke." That's a classic. I'm going to plagiarize it.
🗣🗣🗣🗣💯
And your not really a cpa🤣
That part👏🏽👏🏽👏🏽!
‘Don’t go broke trying to look rich’
We used to say "Buying things you don't want or need, to impress people you don't know."
130K household income at 23. If they get their act together and stop trying to live the luxurious lifestyle they should be fine.
I thought they were making $130,000 each.
After taxes too. Seems crazy high. Probably some bs useless government job.
@@MrJay197409
They both make total of $130k after taxes renting a high end condo/apartment. They could knock off $500-$800 a month with smaller place.
@@mxerb5912 she mentioned he was a consultant
Mr. Carroll Ware Wait, are they both making 130K or 130K combinedv
There is nothing wrong with renting just like there is nothing wrong with buying. The difference is choosing which works for you.
Rented for 5 years at my place and was hit with a surprise non-renewal notice by an evil, spiteful landlord who wanted retribution for past complaints and to hike up the rent again.
At least with paying a mortgage, you have more stability and security.
Renters are at the mercy of landlords and their whims.
I've spent $80,000 on rent. And in one month I will be homeless.
It is a COLOSSAL waste of money.
I have half a mind to return to OTR trucking or saving up for an RV.
It’s a waste of money. I agree 💯. Working or being in a job you’re constantly being pressured by your boss and coworkers. I can just live in a mini van for 1 years and save up to 100,000 a month. W point. The guy responded to has no idea how hard it’s to earn money.
@@TheIdentifiedPatient Have fun wasting money with 7% interest rates, record high home prices, etc. Also have fun replacing that HVAC in the summer and roof in the winter.
@@TheIdentifiedPatient going back otr and getting a RV shit brother I call that smart living. I know plenty who did that, it's really a smart move.
@@matthewphillips5483 not all properties are single-family homes. If you own a condo or otherwise a unit in a multi unit structure, you’re insulated from surprise fees. They’re rare due to the property management, and when you do get hit with big expenses, they’re spread out across the owners (a special assessment), and if the board is well run, it’s usually no more than a few thousand USD. Do not rent. I own two condos and I’ve lived with my parents until I was 26 (I’m 28). Renting is a waste of money.
Her: "I feel like"...
Dave: NUMBERS. Your feelings don't determine reality.
He says just before launchiing into an emotion-fueled rant.
You are correct
@Matt he didn't say to live without emotion. He stated it wasn't reality.
It’s his way of not having empathy.
$2k is really not bad for Arlington at all. Renting in metro DC is quite a bit cheaper than buying considering any decent house in Fairfax or Arlington county is $750k minimum and taking into account closing costs, repairs, insurance, HOA, condo fees (if necessary), property tax, and opportunity costs of taking money out of the market for a large down payment. You end up paying $3500 a month for a house with maybe a few hundred going to equity.
Yep! As a DC resident, they’re making out like bandits paying 2k in Arlington.
I’m first place was in Arlington back in 2012. I was paying $1600 for 1 bedroom. Cheapest place I could find. Thought I was making out for that area (Clarendon). I was working full time and going to school full time. Told myself I wanted to remove any stress that wasn’t completely necessary. One stressor being commuting/getting around between work and college. Looking back I still wonder how much of that might have been me trying to keep up with the Jones’s. The pretentiousness of that area is nauseating.
@@stefanossmitty3318 But they're still paying too much.
They're newlyweds. They don't need more than one bedroom. They can get that OUTSIDE of Arlington.
buying a house while in debt is like brushing your teeth while eating
haha I love a good analogy...
I love this!
Except when a house is cheaper then renting in many cases.
@@user-wq5ws1qs7x until the roof leaks, or a hot water tank goes, etc.
@@user-wq5ws1qs7x a mortgage will always be cheaper than rent however once you consider the roof leaking, the water heater, HVAC or any little thing going wrong the scale tips so fast it’s crazy.
Rent, pay off your debt, then start investing like crazy. Ignore the hype of owning a home. Learn how to invest well and you will outperform investing in a home.
Love this advice💯💯🥂
@Go Live Leverage is for gamblers because leveraged bets only work for shorter time frames. You have greater odds to lose with leverage.
@Go Live Why comment on my comment and ask me this just to say I don't have a clue?
Quality post this.
I hear people talk about investing all the time. But invest in what ? I cant get a hold on anything. I would be happy to have a grab on 3-7% return
Don't make an emotional decision based on temporary situations!
Exactly !
The Dave Ramsey show, the only place where "You got a nice place!" is almost an insult. ❤️🤣
😂😂 I was just thinking that! Same thing when he says “you got a NICCEE car”
$2k in rent for the DMV is on par for an okay place to live.
@@mattm7115 $2K a month is a low number to me.
@@fredferrell I don't pay that for my 2 family house,and take $900 a month income from the property!...You folks live in the wrong place.
@@tompain2751 In reality, what matters is the % of the income you spend on rent, not the amount. Some places have higher costs of living alongside higher earnings for the same job. For example, in my field stipends in New York for a Physics Phd programs are higher than Floridas, but cost of living in some of New York's school is so high you end up with less money each month. But it depends in the area and the school, you do not know until you do the math comparing potential earnings to expenses.
people aren't patient, that's why we are all broke , we want it "now"
Bing. Go.
I was able to first buy in my late 20's but it didn't feel right so I waited till my late 30's and I am glad I did. I felt 100% at peace when I walked into my home and knew it was time. If it doesn't feel right that is your intuition telling not to so listen to it.
I never owned a home and am in my late 30s. I'm almost ready for the home chapter in my life but I'm able to do so debt free and you are right. It is a different feeling feeling ready vs not feeling ready.
If you go to a restaurant, and eat a nice meal, did you 'waste' your money, even if the food is now gone? No because you got something you needed and enjoyed. If you rent you're not 'wasting' money because you get a roof over your head and a place to live.
A lot depends on if you have outstanding bills and how much you spent.
If you have bills past due date and you have to put the meal on the credit card, yes, you wasted money.
I don’t see your logic. Priorities are first, don’t waste your money on luxury such a nice restaurant better learn how to cook buddy
@@pedrogomezrodriguez4121 keep trying, you’ll get it.
I see your point but not the best analogy. Maybe "go to a doctor for a physical" instead of "go to a restaurant for a nice dinner" would have been better.
It’s not a waste per se, but you aren’t building equity. 100% of money paid in rent, you will never see again or be able to use in the future.
The chemistry between Dave and his colleagues is beautiful.
He is a great youtuber and podcaster , Anthony O’Neal
A true servant leader!
“Chemistry” ... I would fake chemistry too with someone paying me millions
I just saw your comment on another post.
"I'd leave her where she is"
Kemist
I love when anthony said “I wasn’t wasting money renting because I wasn’t ready”. Best comment
Dave must think this is 1980. 2000 a month is a steal in arlington
lol right! I pay 1500 for a one bedroom in nc lol
Right? In 2000 you’re in the hood still 😂
@@betterthanemril988 exactly
@@betterthanemril988at least it’s the working class, hopefully you got a ring doorbell camera to deter thieves
LOL
That’s the first time I heard him say something other than “better than I deserve”
i see people who have a house but nothing else because their broke and living check to check. Having a house isnt the ultimate goal.
That is true. However, it can be a great investment depending where you live. In some areas it is cheaper to own a home than it is to rent. Sadly tho, there are a lot of people that cannot qualify for a house loan.
I bought my house when I was 25. It was tough living paycheck to paycheck. Rent would have been $300 cheaper. But 20 yrs later my home was paid off. The same place I’d looked at renting is now $2500 a month, it was $700 when I bought. My house is worth 4x what I bought it for.. I just pay $2200 a yr in property taxes. It allowed me to semi-retire at 49, and I put the money I would have paid in mortgage payments to income generating investments. What worked for the area I live in, won’t work for all areas. Real estate is based on location. I bought close to a beach in California. In a new housing community. Now that it’s all built out, the demand to live there is HIGH. But supply there may be 3 houses for sale in a 5 square mile area. There’s no more open land so no where to build.
The thing about buying a house is initially it sucks because the mortgage payment is the same if not more than renting. HOWEVER, as time goes on (generally speaking) rent goes up, and mortgage payments stay the same. That means theoretically if you rent a place for 10 years, you may start out paying $800, but at the end of those 10 years you are likely paying $1200+. Someone who bought a house nearby may start out paying $1000/m, but 10 years later they would still be paying $1000/m.
*You can also sell the house*.
*You can also live rent-free when the house gets paid off.*
Not to mention more rooms = more things "needed" to by to fill those rooms!
Furniture can really add up!
@@annietribble3062 Yes here in Dallas, or anywhere in Texas. It’s so much cheaper to buy than rent. The mortgage of 2000 sq ft is cheaper than some 1 bedrooms here
Property tax is a reminder that you don't really "own" your home
Or if it's in a hoa community
Yep
And...home owners' insurance.
@@mattmorris2141 if your house is paid for you wouldn’t get home owners insurance?
It's killing us in California
Renting always gets a bad wrap, but when you factor in house maintenance, taxes, closing costs, insurance, time downpayment isn't in the market, etc, it's not always the golden goose it's seen to be (especially when you're young and might move around). Home ownership certainly can be profitable, but it's important to find the right time!
DING DING DING!!!
Just FYI, it's bad rap. Not trying to nitpick, just trying to be helpful. And yes, agreed, renting makes sense in many situations.
And if you get a mortgage, you’re going into debt. 4% over 30 years on a 300k home = 215k in interest. You’re giving the bank $215k for the privilege of living in a house. You don’t own it, the bank does until you pay it off. I’m dumbfounded by the amount of people who don’t understand this. They only see a lower monthly payment and that’s it. 🤦♂️
@@JohnnyD5 Haha I googled the difference and Merriam-Webster stated "Bad wrap is considered wrong and is best saved for referring to wraps and tortillas". You learn something new everyday!
@@YaYousef5 do you know in 30 years , your home would worth a lot more than 300k ? I bet it will be doubled. Also, while renting, you putting away at least 15k a year. 30 year = 450k into dumpster . Furthermore, the rent price is not consistence, 15k a year will go up by ~3-5k every 10 years.
“Well, who’s gonna pay for them, Elizabeth Warren?” 😂😂😂😂😂
No AOC. She wears 20k clothes so she can pay for it.
Googled Elizabeth Warren and found she is a senator from Oklahoma, Is that whom they're referring to actually ?
@@virtuosowins OK and MASS
$2000 in Arlington is not "too nice", it's just an average one / two-bedroom apartment...
A lot of housing in America is overpriced for what things are worth. In Seoul, Korea a couple can still find affordable and decent living place for 400-600 a month, making roughly the same as American counterparts in terms of their occupation. That city is also far better in terms of public transportation. American cities need to get it together.
That’s what I’m saying. 2,000 is damn near an the price of an efficiency
$2,000 sounds cheap tbh... if you want to live withing 1 hour of commute. Unless if you dont work in the City
Real
Believe it or not, there are many places in America that are, in fact, too nice for newlyweds who are carrying $80k in student loan debt.
I’m 52 years now and we did this when we were your age. Dave’s advice worked for us and paid off. I was always so confused as to why we couldn’t afford all the extras that our neighbors had, until years later and saw their bills came due and they lost their stuff and we got to move up.
Amen
Exactly. It should be a requirement in schools at a very young age to read “Millionaire next Door.”
Or our poor friend whose husband passed away and she didn't know he had taken out a second mortgage on their home and spent the cash! Now she is elderly and can't retire! But they sure looked good when her husband was alive!
Did you take one to Dave’s Programs?
There are so many more expenses to owning a home then people think. I wish everyone was more open about all the extras you have to pay for. People might be a little more content renting until they’re financially stable
Agreed.
Yeah taxes, insurance, and mortgage interest really add up. I know people that only rent because of this and instead invest more.
I don’t agree. If you don’t over extend yourself and actually save for when these problems happen. You can’t sell all those years of renting when you want to move on. I went from a two room in a triplex to a 1300 sqft home for half the price of rent. So for half of what I was paying I get an investment that will contribute to our future. I have friends that bought at a home at 18 years old. Ya it was hard for them but the homes where later used to move farther forward.
People aren’t more open about the true costs because that would highlight that their decision to own was in fact just as expensive as renting. Therefore they would be wrong, and people don’t like being wrong.
usually the older the home then more expenses.
I understand the renting concept. But i bought a dump when i was 19. Mortgage was $400-$600 less then renting in the area, and that included insurance and taxes. Knowing that i set aside that same 400 every month to take care of expenses/repairs. Now 10 years later. My house is paid off debt free and renovations have been done. All with just the money i set aside a month from the difference between mortgage and rent.
Great stuff Ian...thats why I am unashamedly pro- buying, even if it means eating beans and rice in the short term.
Smart, smart, smart! Way to go!
How did you qualify for a mortgage at 19 tho
@@callmeosho7792 idk man. My friend was able to purchase a home at 19 (Rochester, NY 1999.). He put down ~ $2K; I don’t know any other details though.
@@mazibukomail the trick is calculating the TRUE cost of buying vs. owning before making your decision. The cheaper option varies by region.
I bought a house for $700 a month. It's small, but for an apartment the same size it'd be 1200 or more. Renting made no sense for me. Rent is sky high right now. Buying might make more sense.
Homeownership will definitely take all your money. Over the years I've replaced the furnace, hot water heater, roof, exterior door, windows, multiple appliances, electrical and plumbing work (including water main to my house), as well as tons of other projects. Eventually though, your house payment will be lower than renting. The value of my house hasn't changed much over twenty years but rent prices have continued to rise. Once its paid for you can then work for a lot less or retire. Your property taxes continue to rise they will still be much lower than renting.
Nahh you get more Value back even if it 25% Per Year you earn more. Having a Home is like a easy Second Job.
Wow, I got this video today when I opened RUclips, after finding out the bank didn’t approved my mortgage, just what I needed to hear.
Thanks
We rented for 3 years before buying a home. People criticized us but 🤷🏻♀️ people will always have something to say. So glad we waited until we were actually ready.
Yeah and now where are they
No matter what you choose, somebody will criticize. Do it the smart way for you.
My partner and I try to rent as cheap as possible making $143k combined
@@kennnnnnnnnnnnnnnnnnn1242 the quality of the kingdom is in the character of those who reside, not the cost of rent. good job, guys
Sometimes it’s cheaper to rent than to pay interest on a 30 year mortgage if you can’t put down a large down payment. On a 30 year term at 4% interest you’d be paying 165,000 in interest on $35000 loan. Yikes
I am 35, single, and making 75k/year with zero debt and I STILL am not ready to own a home mostly because I hate the state/city I live in and plan on moving within 5 years. I also hate mowing/shoveling snow with a passion.
Same, mostly because I don't know where I want to stay yet.
Hope you got someone. Being lonely at 35yrs is very bad
Same. 35, single, 80k/year, zero debt. Renting because there's a high chance I'll move in the next 5 years.
@@andytownsend19projecting?
@@davayun meaning?
My parents' generation. Bought homes. Low prices, low or no taxes. No income taxes some places. One car often. no student loans. No extra spoiled kids. World now is COMPLETELY different
Yup
If you don’t have enough money to buy a house outright you pay interest on the mortgage. That interest is effectively rent. It allows you to live in a house you don’t own until you have paid off the mortgage. Of course it’s a little more complicated than that because you take on the liabilities of the property including maintenance, insurance and either profit or loss in the value from the moment you “buy” it. So the much quoted idea that rent is dead money is a myth. If you rent you are paying the owner of property for the use of the property. If you buy you are paying interest to the lender for the use of the money. Interest = rent.
YOLO = Thank God It’s Friday, Oh God It’s Monday 😅👀
Please tell me she made up that name.
Who names their kid after the drink mommy had when you got conceived.
TSLA calls, YOLO
It's not really wasting money because there is an upkeep cost to owning a home.
Yup, property tax. It's more like "licenced permission to claim something". And if you dont pay the tax, the government has the authority to take the home you "own", whereas if you dont pay the rent the landlord will have you evicted. I know what taxes are for and all, but why tax somebody to own something? It's like it's just a subscription. Sad truth is you own nothing when you live under capitalism. Renting makes sence as it's not your house technically because it's on your landlord's property. So your paying to Barrow the place you live. Simple and understanding enough.
Where do you, think the up keep money comes from ????
2000 for rent in Arlington split between 2 people is not bad at all.
Yeah totally agreed, Dave says Arlington is expensive but don't think he really understands...$2000 a month for 2 gets you an ok townhouse in the area lol...he had great advice though...pay those loans and buy the house when you're ready
They’re married so it’s only one not 2. If you’re single and have a roommate it’s not bad at all.
@@FloppedPizzaParty townhouse ? Lol more like a 1BR apartment in one of the older buildings in the city .
@@tomsa2796 to be fair 2 separate incomes but agreed, roommates help a lot!!
@@bangladeshirealtor if it's modest, a townhouse is definitely doable for 2k, though I agree with your sentiment... Arlington is just incredibly expensive. MD will always be superior imo for working in DC area with the best living conditions that doesn't kill the bank
I'm 30 and I rent and I love it. I don't have to worry about spending money on repairs or maintenance. I pay $550 a month for a 2 bed/1 bath in Oklahoma.
Wow 😳 I’m moving to Oklahoma. I pay $1600 for a 2 bed/1 bath in Connecticut.
$550 for 2 bedrooms? What? Do you live in the boonies? I paid that in college sharing a 3 bedroom apartment.
$550? Wow. I thought thought I was doing well at $745 for my 2/1. What is your annual income if you don’t mind me asking?
@@adfmo2195 I make about $32k before taxes
@@TMartins379 I live in a residential area!
Consider also, that you could go a different route than buying a full big house. What about a bungalo or a smaller, cheaper place to live that you could still manage to have a partner and child live in comfortably. Look into cheaper housing options that you can own. What about living in a caravan somewhere (if possible based on location etc), rather than renting? It could be way cheaper than renting a flat.
RUclips recommended this video to me... watched it... now I'm hooked on the show!
I Rented for 5 yrs after selling my house but I acquired more money for retirement and savings comparing having a house.
Back in the 80's I rented an apartment in Arlington Texas. Now in 2021 they call Jerry's World. It cost me $290.00 a month no bills paid. Now it is sec 8.
When you buy a house EVERYTHING suddenly breaks all the time or needs repair/replacement. Which costs $$$
Yes, but if you have a warranty it’s not $$$$
@@hopalongjohnny9797 are you 5 years old? nothing ever breaks under warranty
Here's how the insurance company makes a profit. Makes it more expensive
Warranty = Avg cost of maintinence + OUR EMPLOYEES SALARY + OTHER COSTS + PROFITS FOR SHAREHOLDERS
@@DXmYb Bought a home, FHA required Home warranty.
Moved in (REO), made a list of non working items.
Water heater, oven, garbage disposal, dishwasher, over range microwave
Cost of Move-in warranty, $452
I manage a hardware store. You wouldn't believe how many times I hear, " I don't need to fix it correctly, just good enough to sell." It's always with roofing, concrete work, and plumbing 😂
"Because they're not gonna be forgiven and you'll be saddled with them the rest of your life and they are the major impediment between you and building wealth. That's the bottom line."
2 years later it seems prophetic. Don't trust empty promises and get a head start on your debt.
On the plus side, you can report your rent to the credit bureaus, or you can get a ledger of payments from the bank for an independent mortgage underwriting company. Renting is not that bad because it gives you a representation of how well you pay your bills.
I'm glad I didn't follow this advice. At 23, we bought our first home in December of 2018 for $250k (new build, so maintenance was minimal). Our rent at our apartment was $1200 a month, and our mortgage was $1600. We just sold our house for $390k, and used the proceeds of our sale to pay off all our debt, PLUS we put a huge down payment on our next house. We will have the new house paid off in about 10 years. Oh and our old apartment complex is renting the same apartment we were in for $1750 a month now......
Idiotic
Very happy you got a great break in life. Unfortunately I half agree with you and with Dave. If you are in the position that your home will be an excessive amount over your rent. You should keep your head down and save a little longer. If you have the funds to actually buy a home and think you should spend that on student loans first, you're wrong. Spend that on buying a place that will give you a roof over your head. Worse case scenario in life you end up with just that one home, BUT it's your home.
This is really bad logic. It's like saying extended warranties are a good deal because you were one of the few people who broke down. Bad decisions do not become good decisions just because sometimes things work out.
Dave's advice left out what he usually says which is don't buy a house until you've paid off debt (school and credit cards and cars) and have your 3-6 month emergency fund in the bank. THEN you can buy house within your budget. So Tim, I assume you were in good financial position with good income to buy that house at 23?
@@LordScrambles couldn’t have said it any better
So glad I convinced my wife to live in the cheaper apartment for our first 2 years while we saved for a 20% down payment.
Tried that with mine it didn't work very hard headed
That's the wise thing to do.
That's cool. Cheaper apartment for me is in the ghetto. Not happening.
Why 20% and not 0% or less( negative equity loan)
@@aolvaar8792 buying house with a 0% down payment is a bad idea. you want to pay *as much* as you can up front to avoid paying interest down the line.
I’m 29 and I make 6 figures and I still don’t think it make sense for me to purchase a home yet and I have 0 debt
I’m trying to be like you
What do you do?
I’m 30, and my income is lightyears below yours.
With the housing prices nowadays. It might be difficult to purchase a home. With renting, it might be beneficial if you’re using Chexy to pay for rent using your credit card and earn points from it. It’s a win win if you know how to utilize your credit card and have the right card for it. Pay it off every month, repeat.
My rent is cheaper than property tax of the average house. And size is just enough for me.
Will you clarify your comment? Maybe one month of your rent is equal to one year of your landlord’s property taxes.
@@greenmean230 you are probably right but for anyone buying house after 2018 my rent is cheaper than their property tax. BTW my landlord got the house in 1970s. This is the stupidity of American capitalism which is capitalize the gain and socialize the loss.
I can see that. Property tax is $10000+ in $1M+ homes here in Bay Area. So if your rent is less than $1K, it's cheaper.
@@kiraasuka9943go live in a more communist country than America then. You can move now since you rent!
Dave, this is NOT the 70s... today 2000 is NOTHING in Arlington VA. You advising them to get out of their place and go where??
found plenty of appartments between 600 and 900 sqft for under $1500. if youre in your early 20s you dont need to live like you made it already.
@@La_sagne where were those apartments? In Seattle (the only place my family can make a decent living) the cheapest rent is $1500 not including utilities or electric.
2000 for rent is insane to me, regardless where you live
For real. That’s what I was thinking, $2,000 doesn’t even get you a one bedroom in Seattle.
@R W apartments com.. type it in and youll see
Dave: “2,000$ you live in a nice place!”
Me in SF: what??!!
Yeah in Arlington VA that's not into "nice place" zone.
@@PaulSullivan828 Exactly what I was thinking. So confused right now.
It's like that literally everywhere with rent now, not even just "nicer" areas. I've looked at apartments in several different cities, and a 1/1 is always $1200 minimum, nicer apartments are up to 15
@@brendanpeck9780 We own a rental in a small college town, and charge $875 for a 2 bed/2 bath updated home. It's all about location. Most places are not like CA or VA.
Haha right?! Yeah in LA a 1 bedroom on the low end is $2500
Bought my first house at 30. At 43 now and I own 6. I think they will be fine.
Can you give me some advice I'm 25 years old and I just bought my first home I would like to buy some rental properties as well
Cheff Jeff best advice is just do it. I have 2 rentals and bought them at 22 and 23, don’t get into unless you are handy. And don’t buy dumps. But if you have the money saved to buy one I say dive in. You may find you don’t enjoy being a landlord, talk to a realtor in your area. Buy something fairly move in ready
@@cheffjeff5908 do real estate wholesaling to build capital so then you can invest and pay down rentals while having renters pay as well, so you’ll double down on the payment and start your passive income stream faster
Out of curiosity, are they all debt free? (Your properties)
@@tinawelch2545 My primary has a mortgage. All my rentals are debt free.
I'm 48 and I never listened to Dave Ramsey before this weekend. I love this guy! Finally someone who gets me!
I'm 38 from 4 years I'm debt-free, and all my colleagues are still either renting or painting mortgages. It is a great feeling to stand in the middle of the shop and say to myself:
"There is nothing here that I can't afford"
House comes with taxes, insurance costs if you dont have 20% down, repairs (renovations, upgrades, boiler, water heater, plumbing), cleaning costs, yardwork. It is definitely not an asset
FINALLY! Someone agrees with me.
Manny your points are all valid.. but Owning a home is an asset / investment because you can be in an equity position and sell your home for a profit. Your points are valid because you listed liabilities against a mortgage. Bottom line- don’t buy a house until it’s the right time 😀
A house is definitely an asset
It’s absolutely an asset. The appreciation typically exceeds the maintenance costs - by a long shot. And when you get a 15 year mortgage, the home pays off in 15 years or less and your monthly payment goes away which means increased cash flow and increased ability to build wealth because a huge chunk of money is freed up every month to invest. When you rent, the monthly payment never goes away and it increases every year. Chris Hogan’s book Everyday Millionaire shows the the biggest commonality among millionaires with a net worth of $1-5 million is wealth built in their 401k/mutual funds, and a paid off home.
A house is still an asset
This duo is like fire and ice. It’s pretty dope.
Hard to save for a home when apartments are just as much as a house.
Thats what i think. I personally think if you can save up enough for your 20% down to cover PMI, and you are still able to afford the payment without issues, then you are building equity instead of renting and throwing the money away. However i do think renting to get an emergency fund saved up and your 20% down is a good idea.
Or more.
True..if this is the case ..then renting is better option..when things break down..its fixed by property management like pipe bursting or sewage problems ..its fixed by landlord..if we buy its out of our pockets
@@blissessentials524 Try not to break things. Then owning is better
@@blissessentials524 that's if you have a decent landlord that gets around to fixing things. I've seen too many that neglect their rental properties, renters having to beg their landlords to get things fixed.
I used to live in Arlington about 17 years ago. Back then we were paying $1400 a month for an average 2 bedroom 1 bath apartment in the "hood"/ South Arlington. "Hood" in qoutes because even back then Arlington was too expensive to have a proper hood. More like lower working class with immigrants. $2000 a month rent today in Arlington is not crazy. Arlington is basically DC and you're going to pay to live in that area.
I doubt they are paying 2000 for a studio or 1 bedroom. They are barley married don’t have kids so don’t need extra room!
$2000 a month sounds pretty cheap in Arlington
@@bigpap90 2500/ month for a 2br apartment is pretty standard in that area.
I live in this area and Arlington is one of the more expensive neighborhoods. They can get a decent one bedroom apartment in a different area, still close to DC for $1200-1500
As someone who lives in DC, $2k is actually pretty good. I think the average rent for a 1 bedroom is $2,500-2,800. Saw a new building advertising 1 bedrooms “starting” at 3k.
I moved in 2013 but I think rent for the 2 bedroom I lived in in Alexandria was $2,800.
@@arondag yep. That place is probably $3200-3500 today, or more.
Aron Rodriguez I paid $2100-2200 for a 2 bedroom in Alexandria
That is insane. Not worth it unless you're making 100k or more for $3k rent (if thats by yourself)
Levi Yea, the apartment actually followed the standard, “You need to make 3X the rent to qualify”. I was in high school at the time. My parents rented it. My dad was deployed so it was just my mom and I for a year and I was a senior so we stayed so I could graduate w/o messing up my credits and risk having to repeat senior year. But that’s why people “put up” with it. I’m sure my neighbors all had good gov’t or gov’t contractor jobs.
My daughter foolishly purchased a very expensive condo, because her manipulative boyfriend demands the best of everything - especially if she's the one that pays for it. I found the exact same condo, within the same area, for less than half the price. Since buying the condo, they suddenly married. She no longer speaks with me.
I don't think I want to leave any inheritance to her, because he just wasted hundreds of thousands of dollars. I worked all my life saving the majority of that money while supporting her. She worked really hard to get a doctorate degree and it's all gone to waste.
This entire situation has left me very broken-hearted. As hard as you work to save money, you have to work even harder not to let master con artists take it away from you.
so true
I wish you and your famy the best Diane. Sorry to hear about your situation.
n-mom alert
Bought house and a couple weeks after, the water heater broke. Spent 2k to replace. Welcome to home :)
I’m a plumber, I can do it for cheaper!
Ya thats what scares me when i own a home..just so many expenses compared to renting.
Old water heater and undisclosed water damage to flooring under the fridge the seller generously left for us. 2000 to fix both. Also home inspector also did the pest control for the house a month before we closed. What a coincidence
Should have hired a home inspector. You could have negotiated the price you paid for the house
Not really. When you rent, you can use the down payment as investment money.
The issue some find is that paying rent is more expensive than a monthly mortgage at least thats the case in the UK. E.g. where I live, the rent is easily £1200-1300 for a 2-3 bedroom House in an average area. On the other hand, monthly payments for mortgage is around £500-£600 for a 3 bedroom house. This is why many who do have a deposit will straight leave renting to buy a house and you can sell the house and retain some money from the sale of the house.
Just got married this year and I was in an uber one day and a man asked if I paid alot to live at the apartment. I said, "no I only pay 800 for a two bedroom." He was like "wow you think thats cheap? Your better off just buying a house here." And I was so disgusted but what he said especially knowing im young. But also the fact that someone can sit there and act like a house isn't a commitment. I rather pay $800 a month or less, pay off debt and save for my dream home somewhere in this country than buy a house in my hometown that I dont like with a 15 year commitment "just because its cheaper"
Who would want to be house poor in these times. Paying down debt is much better option.
I know of someone who bought a house, invested time and money renovating it, and diligently paid the mortgage for 26 years. Sadly, illness struck, leading to the loss of their home. The devastating blow sent the homeowner into a deep depression, and within a year, they passed away. It's a heartbreaking reality that often goes unspoken; we're accustomed to hearing about "forever homes," but life's twists can sometimes shatter those dreams.
The US is the only country in the developed world that has people going bankrupt because of medical bills.
Buy a home, rent it out and live off rice and beans. You will be making money from the rent while also making money from your regular 9 to 5 job. That double whammy of income plus owing an asset (the house) is the secret to building wealth.
Buying a house is like a new toy... until the AC needs to be fixed.. you need a new fridge... and suddenly your car breaks down. Renting may be higher but it’s not ALL going to the landlord..you’re paying for the labor on all the stuff that goes wrong that you don’t have to worry about. Your rental payment helps to maintain the property, yard work, insurance, and that 10 million dollars they owe Home Depot and the Construction Co.
when the ac or water heater goes out you still have a roof over your head, if your rent goes sky high and can't pay you are evicted and are now homeless. Rather live a house with no AC or hot water than on the street.
Dave needs to update his rental price spreadsheet.
Renting is better than negative equity. Also, being able to invest funds into assets that are gaining value quicker than property is a benefit of renting.
Almost nothing in existence grows equity faster than a home in the 100+ years we've tracked it, for most families a home is the ONLY way they improve their quality of life in a shorter amount of time than decades
@@jtowensbyiii6018 Literally lots of investments grow faster than a home. Just buy an SP500 index and you'll make about 8% every year (on average). Most homes don't make even half of that.
Rent is like throwing your money in a fire, but I would rather live in an apartment for a year or two to save up for a nice house than to buy a cheap house that I don't like
I feel like I'm wasting money. I only make 72k before taxes and I pay 2k a month. I live in LA, so rent here is outrageous.
You may want to consider moving out of California. I heard the homelessness, income tax rate, traffic, etc has gotten bad.
@@ttr8141 Yeah, it's terrible. It's a bit harder for me to leave California since I'm a "baby lawyer" and am only barred in California, but I am seriously considering taking the bar somewhere else.
Come to Free America! Conductors are taking trains out nightly. Leave the Democommunist Occupied Zone. The sponge is in the microwave. The Lexus is double-parked.
@@ttr8141 como to Stockton California
It is genuinely a waste of money, when you could be repaying the mortgage to get the value of the asset back where as u have nothing to get back for renting.
Have you factored in the interest on a mortgage, maintenance costs, taxes etc vs. the comparitive returns if investing in stocks instead? On average stock market wins, UNLESS you have super low interest
@@redmax9346 What maintenance? Your acting like a house just needs constant maintenance, its most likely every 5 years or so.
Not to mention, people love to forget about the amount of interest, insurance and property taxes they pay every year on the home they own.
I own multiple rental properties and rent the house I live in well below my means. It works great for my wife and I.
I rent, I’m a single girl who doesn’t wasn’t the burden of maintaining a home and constant repairs and cost and I don’t need much space. Renting makes more sense for me. I’d rather invest and save other ways. Also, I would feel unsafe in a house with multiple entrances and first floor
Totally agree w you!!! Peace of mind is more impt. than "owning" a property. As well as feeling safe and having the support of a landlord. Different people, different circumstances, different lifestyles, different needs. This is the advise I needed 16 years ago when i bought a big home just for myself 😥 Lesson learned. I'll also considerate if i would like to live there long term... Being a home owner is not for all.
@@bluesky2026 yes!!! Often I’ve found everyone pushes single people (to marry 😃) and to buy a home so much, they forget sometimes buying isn’t the best choice financially or for their lifestyle. Additionally, I don’t need much space. A two bedroom resells between but I don’t need it.
They have good advice but they are out of touch with reality. They don't understand how bad inflation is. Prices are not the same as when they were in their 20s.
Youre absolutely 💯. Prices have literally quadrupled in some areas for houses but not the salaries. At least in the medical profession (im an RN) It was great for people who invested back then but for the younger generations it really sucks. Something has got to give, just don't know when.
The prices might be high but if you think you're spending too much on rent, a house for the same amount will always end up being more because people go crazy buying furniture and decorating etc etc and then they don't take into account utilities, taxes, insurances, closing costs and inspections or if anything has to be fixed. Our neighbors sewerline had to be replaced and it was $10,000. Things like that must be fixed with a house and you don't get a choice. It isn't a fixed payment every month like with rent.
if you think renting is wasting money just remember this. You are RENTING the money you borrow when you buy a house. So you are renting either way. If you buy a 300k house on a 30 year loan you might pay as much as 600k in RENT on the 300k you borrowed in the loan. That rent is called interest, but it is a rental fee. You rented the money. So yes renting is wasting money, but if you are just going to replace renting a house with renting money you haven't fixed anything. You are not avoiding rent. You are still wasting money on rent.
This is a unique but interesting point 👍
My wife and I have no debt and double their household income but house prices are too damn crazy. Just gonna keep investing our extra income for now.
Needed to hear this. I’m a recently single 28 year old male in FL who makes $104k base/year and have been feeling like I need a home. I currently have $26k saved for that home (obviously have a lot more saved in other investments) but have felt that pressure that I need it. Seeing my friends buying homes is making me a bit jealous; However, trying to stay patient and keep saving so that I can buy a better home in a few years without going house broke.
Long-term, it is a waste of money. In the short term it can definitely make more sense to rent than buy
You want to Buy and give to People In the Long Run or for Yourself you can be pretty cheap when you have no debt rather than Rent what is an anmount you need to pay forever you are there.
I Rather Buy or Buy Stocks than Let the Money get used up by Rent or Expensive Holidays. Now is the Time to keep the Money going in your Control like 10 Years and later spend some.. The move you Save // Invest the Better you have it Long term.
I would always disagree with this. I would whether buy as soon as I can instead of staying in a home paying someone else a month.
$2000/month is a ton to be spending on rent. I've been living with my GF (now fiance) in a 800 sqft 1 bedroom apartment for $1200/month in an expensive area in my state. Now we're debt free, getting married and moving into a 2200 sqft townhouse next month that we own.
Congratulations I’m curious about where you live though. You’re not getting a 1 bedroom in the DC area for less than $2,000 so what they’re paying now is pretty good. Average 1 bedroom costs around $2,500 on average here.
@@stefanossmitty3318 Not in DC. We're in a southern state. We make $175k/year combined gross income. People who suffer in high cost of living areas thinking it's worth it because of higher salaries are getting scammed
@@pey7777 ok, that’s wonderful! I live in DC and do Ok and wouldn’t say I’m getting scammed. I like having a Metro station a block away (I still have a car) and being within 40 minutes of 3 major airports is a bonus since I love to travel, not to mention cultural attractions and a lot of diversity. I grew up in a rural area and I’ve learned that I’m definitely a city guy. Congrats again and wishing y’all lots of happiness.
will you be buying the townhouse ?
@@lionheart93 5% down conventional loan
Equity, equity, equity. Renting is a waste, especially if you can invest in your house to make it worth more.
I got my 20k loans discharged because of the ITT fraud scam. But I also didn't make much money back then, here I am 20 years later debt free. I also agree with Dave you should go aggressive to pay those off since you can afford it. Some of us aren't so lucky.
"The idea that home ownership is grand, but it's not, sometimes it's 50 Grand"
I really appreciated that play on words
People need to factor in cost of living when deciding where to work and live. A $130k income DC while having $80k in student loans and $2000 rent will leave you struggling to make ends meet. God forbid they have a kid or two.
Give me that kind of income and I'll show you how to make it.
2K for two people? Almost sounds like free rent
I bet they’ll probably have a kid before their student loans are close to paid off since they just can’t wait to start a family. Then they’ll justify buying a home because their apartment didn’t have enough space. Then for the second child, they’ll probably justify a loan for constructing an extension to make room for the second baby.
When having a child, Dave recommends going in stork mode and piling up cash while paying minimum on debts, so if they are following Dave's advice, they'll have money for the child before child is born. Having a child while paying off debt isn't impossible with proper planning. You can go back to gazelle intensity on your loans after baby is born and you know what your monthly expense is with child included.
Truth! 15 years ago I tried to talk my sister into moving to Arizona. She was a teacher in SoCal and her husband a business manager. That business was opening in our town and they needed a manager. He could have gotten that job. She told me that the salary fur teachers was half of what it was where she lived. Great except yip are skipping that a nice house here (this was 15 yrs ago) was 200 k and a nice place there was over a M. Then there’s taxes which are higher in California. Fast forward to today and she is still renting. She won’t consider buying a town home even though they were down to 400k when the market collapsed. It has to be a house. She has set herself up to be miserable forever. Meanwhile rent has gone from 2k to 3.5k a month where she lives and she realizes at some point she won’t be able to even rent. Watching people make mistakes is so painful
Renting is a waste of money.
I’m glad I found you and your teachings.
Thanks a lot for all you do
Trust me it’s not a waste,own a condo time to buy new appliances,lousy whirlpool range fails less then a year,what a joke!have to pay for all this stuff that won’t last 5 years and have to do it all over again! Point is it’s best to rent!
I admire the financial independence of people, But you can live better if you work a little more. After watching this I think there are people out there, on the extreme, who plan to die early just to be able to retire early. To each their own but to me, retirement isn't just about not having to work, it's about having the freedom to do whatever you might reasonably want, such as travel, buying things, enjoying life, etc. I don't think I could retire with less than $3m in income-generating investments, maybe $2m at the very minimum. I plan to work until I'm at least 45
Nobody knows anything, you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving
@@ScottBrown-b7o Having an investment adviser is the best way to go about the market right now, especially for near-retirees, I've been in touch with a coach for a while now mostly cause I lack the depth knowledge and mental fortitude to deal with these recurring market conditions, I netted over $220K during this dip, that made it clear there's more to the market that we avg joes don't know
@@MaryPatricia-wr3wj Who’s the person guiding you
@@ScottBrown-b7o credits to KRISTIN GAIL CUNNINGHAM, one of the best portfolio managers out there. she's well known, you should look her up
@@MaryPatricia-wr3wj Thank you, I just checked her out and I have sent her an email. I hope she gets back to me soon.
Dave keeps stealing Anthony's thunder. LOL
“ How Long You Been Married?”
1:28
Too much thunder came in hot
@Anna annanymous it's nice to have different perspectives... and they have likeable personalities.
dave is daddy anthony is baby for now. soon anthony will grow and take dave's thunder back : )
If you're living in Arlington. $2000 isn't much Dave. You have to move away not down.
Yeah, I live in DC and it doesn’t sound like Dave has been here in a decade or two. Many people would sell their right arm to pay 2k in Arlington.
I was confused as well. I think Dave had some sort of mental blunder here. They are spending less than 20% of their take home pay on rent. That is immensely low. Rent is not their problem.
They absolutely ripped her apart. But she was lucky to hear it.
If I can finance a mortgage with monthly payments roughly equal to my current rent payments, why shouldn't I buy a house? Yes, I understand that property tax and maintenance will also add to the cost, but I value the freedom of being able to have complete control over my own property. Even if it takes me 2 extra years to pay off loans, I think it would fit my value structure better to buy the house.
Then thats a lifestyle decision, not an investment decision. Which is fine. But if your goal is to build wealth, you really have to calculate and with current interest rates its very unlikely you'll come ahead with the house. unless you're very lucky and buy in an area that becomes the new silicon valley after you bought your house.
@@redmax9346 you can always refinance, and on top of that, equity build.