WHY Renting May Be A BETTER OPTION Vs Buying A Home! | Minority Mindset
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- Опубликовано: 7 май 2024
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Renting vs. Buying A Home - Which One Is Cheaper?
0:00 - Video starts
0:30 - Is renting as bad as people say it is
1:20 - How to calculate the real cost of owning a home
10:50 - How to calculate if you can afford to own a home
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This Video: • WHY Renting May Be A B...
Channel: / minoritymindset
Video host: Jaspreet Singh
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DISCLAIMER CONT'D: I'm just a random guy on RUclips so do your own research! Jaspreet Singh is not a licensed financial advisor. He is a licensed attorney, but is he is not providing you with legal advice in these videos. This video, the topics discussed, and ideas presented are Jaspreet's opinions and presented for entertainment purposes only. The information presented should not be construed as financial or legal advice. Always do your own due diligence.
Thank you for watching! If you enjoyed this video, you should watch - How To Earn Passive Income With $1,000: ruclips.net/video/nGa53uNPNMM/видео.html
I pay 525 a month utility included plus free cable😌😌😌
Your channel is great, but has so much spam. They even opened a minority mindset username
@@betruetoyourself7162 mcmgm
In my country it is even cheaper to rent than but a house, you can pay around $1000 dollars a month for a really nice house, but around $2000 a month in a mortgage, makes less sense
Most people don't get tax benefit of 200$ with 24k standard deduction ; So I think it misleading to put out this video in 2020 with tax benefit. Remember. SALT deduction is only 10K. Sorry you are right... if I put 14K in charities.. I can take 200$ tax benefit
Halfway through this, my wife told me that the toilet is leaking.
figures
Trees eat
IMO - it’s a zero sum game at the end of it ..
😩 last think you wanna hear right now
Lol
I’m just going to buy an old 500 dollar van and live in it 😂
Live down by the river!
Looking more and more like the new American dream
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.
Most people venture into real estate, stock and crypto to be a millionaire, meanwhile, I just want to be debt free
That's very practical and smart goal, a wise man once said do everything you can to get outta debt, one of his tips to getting rich
@Eva Helen Crypto is the future, investing in it will be the wisest thing to do especially with the current rise
@@popsarah7805 stock is good but crypto is better
Hello,
Have heard lot about crypt0, but haven't tried it before cos am scared of losing. I need a guide, someone that can lead me to success
@@alicemark5918 Then I will personally intro you to Anna Wilson of UCLA Anderson financial institution. Anna has always been the best in that institute, I have been working with her for months now, investing with her is awesome and of no regret.
I've had both. I rented and I owned property. Its all up to what's best for you, but do your homework. Don't just jump into it.
That's the real message and an honest one.
What was best for you?
@@letsgetjackdup9952 Owning my own property was best, because I had children and they had a back yard to play. There was even a swimming pool.
Exactly
@@winter051 absolutely
I agree 10000%. Where I live, renting is frowned upon, but housing is EXPENSIVE. I have a close friend who has purchased his own home, after mortgage payments, he barely has money to survive and depends soley on overtime (which isn't guaranteed)... Meanwhile I am renting, and because of videos like this I am able to set aside money for an emergency acct, future savings for my kids, an account saving money with which I will use for investments. I REFUSE to fall into that mortgage trap
Well said my Man 😅
I feel you but rent is only going up where as your mortgage is locked in for good
You could have a mortgage on an investment property instead - interest only. Pocket the difference in rent and remortgage at the end of every term - reinvesting the gains (but bearing in mind that capital gains are taxed when you liquidate). Watching these RUclips videos is teaching me a lot.
@@Itsdjsigi I own my own home and mortgage is not 'locked in for good'. Property taxes and homeowners insurance go up every year and this makes your mortgage payment go up also. A friend of mine, who owns her home had another $400.00 tacked on to her mortgage payment each month because of this. You never know and can be hit with this at the end of each year unfortunately.
@@sandysimmer1279 My co worker told me this happened to her recently as well, thank you for the info.. I wasn’t as informed when I posted that comment.
Ever watch The Money Pit? That was us. Bought a waterfront property that turned into a nightmare on every level. We sold it six years ago, and the new owners also sold it. Been renting since, and now my money is in the bank instead of a contractor's pocket.
He forgot, that rent goes up every year about 3-5%. Plus, the owner can kick you out if he wants to sell the place.
Buying a home is at best keeping the value of your money, committing 30yrs on a single investment is insane if you ask me. 3-5% is nothing, SnP 500 along goes up 10% each year, with proper investments you can beat that number at least in short term. Renting gives you more cash flow which can help you build actual wealth if you know what you are doing. Why do you think all the fund managers are working their arses off just try to beat the index? Shouldn't they be out there buying properties?
@@kaydens6964 yeah it’s crazy, but it actually does work. It is like renting a car or furniture or tools. Depends if you want convenience, just rent. If you want stability buy. Personally, I have seen a lot of older people struggle with rent, thinking renting forever will be great. They end up back with kids or in a dilapidated home or apartment stressing g about rent
@@betruetoyourself7162 I’m all for buying a place to call home if you can afford to do so. Just a bit idiotic to think it as a financial investment option. It’s more like a forced monthly payment for people who do not know how to manage their own money, so when they get old even if they spent all their money at least they have a place to live.
@@kaydens6964 wow idiotic to buy a home? Ok if you think that, good for you
@@betruetoyourself7162 idiotic to think it as a investment. You are leveraging a large amount of money to bet your situation do not change for the worse for the next thirty years. For example, just a year ago pilots were great jobs, and now most of them need to find something else to do.
Thank you Jaspreet for giving me a reason to look forward to 7:30 a.m. 👌🏼
MM the first thing I watch in the morning 🔥
4:30 am for me. Popcorn (cereal) ready
Haha right
I seriously wake up for these videos! :]
5:30am here lol
I wish everyone realized this instead of glorifying homeownership as the holy grail. The decision to buy a home is complicated for all the reasons Jaspreet described. Please take note, people. Renting isn't bad if you do it wisely whilesimultaneously saving and investing. I know so many people who are "house poor" because they've been told homeownership is essential.
Thank you, Jaspreet & Minority Mindset!
I needed to read this. My boys have been telling me to buy a house and I rent right now and can create my own savings and investments and avoid being house poor
They don't know basic maths and what is opportunity cost haha
Everybody at work pressures me to buy "I only pay xxx in mortgage" but there are hidden costs and this demonstrates so wonderfully I will just link my colleagues to shut them up.
@@Wahinies yeah when they see this they gonna be like ! Whuuuuuuuttt!! 😯😂
@@Wahinies People can pressure you all day long. When you need work done on your home are they willing to offer you finance or a lending hand?
Rent is cheaper when you have a roommate that covers half of the expenses. It has worked for me, and was a great method of paying off my student debt. As of july I am debt free. Owning a home is nice, but dont forget it aint just the motgage you gotta pay. But also the property tax.
If you're renting you are very likely paying property taxes too. It's just "included" in your rent payment.
You can have a roommate owning a home too.
@@davidaaron28 I agree its just that in the event something goes wrong, you are fully responsible for repairs and maintenance. And if you lose your job and/or decide to move to another place for work you still got to go through all that hassle and hope someone will buy. I still would rather prefer to own a home but i gotta live within my means for now.
And homeowners insurance, HOA fees, landscaping, list goes on and on lol. Still glad I did it when I did. 2009 during the crash, at the closing table and the previous owner was cursing me under their breath lol
There are no separate property taxes with renting. No huge deposit. No repair costs. No homeowner association fees. No home insurance. No lawn maintenance. No 20-30 obligation to pay every month without leaving. Complete freedom to leave anytime without having to find a buyer.
I bought my 750sqft home for $24k cash. Good neighborhood, decent shape, taxes are only $90/mo. Closest rental in my area comparable to my house is $900. I think I made the right call buying lol
I did the same thing. The neighborhood gentrified and the same tract house on my street is selling for $150,000. I bought in 2008.
congrats on your investment, that is small....wow. I own a 1000sqft home. Its me and my two cats. I feel closeted and looking to get a bigger home. I too am in a wonderful neighborhood, middle class educated folks who are pharmacist, teachers and nurses. Near by great downtown shopping and restaurant area.
Where & what state did u buy a home for $24K ?
@@creativethink5448
Warren ,Ohio
@@creativethink5448 Beloit, WI. The owner of ABC Supply Diane Hendricks is revamping the town. I bought my house 2 years ago
Me saving this video to send to family and friends who try to pressure me into buying a home when I’m not ready 😆
Please don't buy unless you're ready. I don't think family would enjoy helping you pay for a leaky roof or plumbing. Just because they think what's best for you. It can put you in deep debt.
Don't let anyone scare you into buying a house. If they really think you should build equity than just put your money in a bank. It's a much cheaper savings account.
@@traceycolvin0504 ... I agree. I asked asked them the same question and they made it seem like maintaining a house is not that expensive. It’s hard, but I won’t succumb to the the pressure though.
@@jordanroberts7931 ......Yea, I’m really not ready. I recently started investing and I’ve made some profits during that time. I think I’ll stick with that for now until I’m ready to buy a house.
@@MsKerry-lp1ue Do any of your family or friends own a house? Ask them how much are their expenses each month. Not only are you paying for property tax, there's heating which can cause an arm and a leg during the winter months. Lord forbid if the furnace happens to go out. Water bill can be high and don't forget about maintenance and up keep of curb appeal. Just to name a few of the things I had to maintain in keeping my home up.
I felt so miserable owning, because I couldn’t move when I wanted. It took 4 months of planning to sell and move to a new location. I will be very careful before buying my next home. It’s like a prison. I would rather be free and pay a little more by renting.
Wow this is how I felt (recently sold my home)
Are you kidding me ! You felt like this too ?! Wow 😯 I guess that’s how it is sometimes
Thank you all for your comments, I didn't know it felt like this. I'll stick to investment properties for now
I absolutely hate moving, I don't get it, my house is like my wife, the first time I laid eyes on her I knew she was the one, why would I move from my beloved house?
I felt the same way. Sold 2 weeks ago
I on Rental properties but I rent aswell I love being able to pick up and leave or just have amenities that I borrow and give back. Great videos brother
I'm heavily into real estate too. My funding for most of my projects comes from my crypto portfolio. Are you in crypto?
That freedom is good. I don't move as much now so purchasing made sense for me.
Don't forget closing cost unless you can negotiate them in, but with the way the market is right now that will be hard. On 400k closing will be over 10k could be different but from what I have seen im thinking closer to 15k+. So you can add that now your looking at 90,000+ to move in.
The only reason I rent (despite rent hacking so that I basically live for free) is so that I can save up for mortgage deposits. And I also rent additional apartments to then use in my Airbnb business as that model is much easier to scale than owning (at least at my current net worth)
Smart move
I'd rather own a home off in the country somewhere so i don't have to deal with the power of landlords and the annoyance of neighbors telling me what to do
amen
And it’s cheaper than living in the city
Besides you can grow a garden and keep chicks🤗
Dean Gerber in the majority of townships growing chicks is banned. Forget about it. Garden, maybe, if it is not a gated community.
@@sergiyprykhodko6222 That's why he said "off in the country"-- less zoning hassle. Of course you can look into the laws and pick a work-around even in more urban areas. My (urban) county puts a numerical limit on hens and forbids roosters. A male duck is a "drake," so apparently they forgot to regulate waterfowl. Unfortunately it is the ducks that are loud rather than drakes, but you need ducks for eggs (& both for duckings & therefore meat), so this is still better if you live at some distance from your neighbors. In the right climate or with the right shelters, muscovies (wart ducks) are much quieter than domesticated mallards (all other domestic breeds) though they're more of a meat than egg breed. Aquaponics probably won't be regulated either (no noise, except for the plumbing). Rabbits and guinea pigs are essentially silent, but sometimes the cuteness leads to animal welfare rules that consider them pets rather than livestock. Anyway, look at the laws and see what you can do. Sadly property taxes are so high in many areas that the savings value you get by growing your own food probably won't match the money you give to the government. In America, food isn't a top 3 expense. In an urban area, the economic thing to do is rent out floors you don't use, though I am not personally sure I am on board with the hassles of being a landlord, and the homesteading thing is definitely a more enjoyable hobby IMHO.
Thank you much for sharing Jaspreet! This was so EXTREMELY valuable to me.
If you decide to rent don't waste the money you save
(instead of buying a deposit) Invest it 🚀🚀
I disagree I own rental properties but rent where I live because in my profession I want to be flexible to move whenever I need to for a job opportunity, and it free my time up so I dont have to deal with maintenance.
@@tidey4 that makes no sense. You already do maintenance on your rentals, correct? ? Your home you pay down on your principle. If you bought right , and right location it will be easy to sell and move.
Banks are sneaky , front loading as you call it!!!
@@recyclespinning9839 Yes I do, but the rentals pay for themselves with left over cash flow. I'll eventually buy a house but at this point in my career I need to be flexible to new opportunities.
All I'm saying is that buying a house is not a correct solution for everyone. Also there's no cookie cutter solution,everyone needs individualized answers.
@@tidey4 thats why you should buy and HODL Cryptocurrencies.
It will surpass gold’s market cap!
One thing you forgot Jaspreet and that is, for most people, a house deposit will be most of their wealth. Then they use it to buy one house in one neighbourhood.
They are concentrating their wealth, there is no diversification.
They tie their financial future to the success of the housing market in their area.
If they rent they can invest in a variety of assets.
Importance of paying off your home early. Payed my home off in 3 years. Now I have a newer home and no mortgage. Yes I could have put all that money into investments but I secured my place of living outside of utilities and taxes. And if so thing goes really wrong I can work a minimum job to keep a roof over my head
Best answer yet. I’m so tired of people saying renting is better than owning.
There’s nothing wrong with renting as longest you realize eventually you could buy a home. However some people are better off renting would you rather go back to the fiasco of 2008 or rather have people be responsible and buy homes with time.
@@eliot5220 renting is better if you plan on staying in the place for less than a year. It doesn't make sense to buy a home if you plan to move out in 8 months.
However, my opinion is different if you plan to stay longer than a year. The issue is at that point is everyone don't qualify for a mortgage and this is why we have a renters market.
My plan exactly
just wait until biden raises taxes on capital gains...
Probably one of the best videos I've seen on this subject! Thank you!
Mr jasperrt thank you so much for everything. From the bottom of my heart i can't thank you enough for your great effort and breaking things and making it as simple and easy as possible especially for a none educated person like myself.
Investment property is better than owning your own property for yourself. The best thing to do is buy an investment property in an area where development is barely beginning so that in 10 years it is a solid investment property that yields a lot.
Ahhhh thank you for the wake up call! I was staunchly a renter then felt the allure of home ownership and started looking again but you’ve reminded me that I need to run the numbers instead of just listening to heuristics
He makes it easy to understand..
Should also include closing costs of buying and selling, as these are thousands of dollars and make short term ownership highly impractical. Realtor fees are about 5% of home value.
The intrinsic value of your kids having a place they can call home....priceless...
I second this. Not having to worry about having pets, growing a family, having guests come over is priceless. Humanity cannot be quantified. I have no problem renting while I am young but I dont' want to rent when I plan on settling down. There are always ways to rent out this home and move.
Well, actually, it has a price and you decided to pay it apparently. For some people, it's simply not affordable unfortunately.
@@emptystuff1593 affordability is a different topic. I'm talking about being able to afford a house but deciding to rent instead
Also, a house is much bigger than an apartment.
That's fair, I'd say plan accordingly. The myth is, a home is an investment, which is false. If you're young, invest your cash and buy when you have a family
Great work at explaining the Home vs Rentals parables. I agree on the passive streams to sleep better at night, as well as, let other assets or renters pay for your home (property investments).
Until you get the streams going, then determine fo you have either a career that is Downsizing Secure or skills translate in maintaining same lifestyle income streams.
Great vids, very informative!!! Thank you for wonderful content!!!
Im single and rent from my friend. He owns the house outright he worked hard to pay it off. But I get low rent and I save the extra money and buy guacamole and ETFs.
Lol, guacamole
@Susan Ananda I have a strategic guacamole reserve of course and I cannot discuss those numbers because it's strategic. 😂👍😁
Can't beat good guac🤙🏼
To Summarize...
Rent where you live,
rent out what you own
Happy thanks givin! Stay safe and thanks for this cool info
Giving
Happy Thanksgiving. You’re really inspirational. I enjoy your vids. Informative. Simple. You’re amazing!
You missed the most important point. If you're paying a mortgage then you should have a paid off house to live in when you retire. If you're renting then you'll still have to pay all the way through retirement...
You pay property tax foreverrrr.
300 vs. 2500+
@@davidaaron28 assuming taxes don't raise significantly over time. But you would still own the house
The argument is that when you rent you invested your down payment ($80k in this example) so when the renter retires they'll have $1,586,991.95 of investments ($80k invested for 30 years assuming a 10% return). Personally I think I could live off that no problem in retirement.
Agreed. If you rent, you’ll pay rent forever.
If you own it, eventually you’ll freakin stop making payments and get to enjoy that extra cash for something else.
Also, you have to look at it like this...
If you rent: You paid out $400k and walk away from that house with empty pockets.
If you own: sure you paid 400k but you can sell that dump and get your 400k BACK when you walk away from the house, essentially, living for FREE that entire time. 🤷🏻♂️
Owning always prevails over renting, the only exception is if you can’t afford home ownership, otherwise your just giving 2500/month away to someone who took advantage of homeownership I.e. landlord....There’s an end to a mortgage or ways to create equity or leverage by renting out your home...there’s no end to renting.........................!
That's ridiculous. There are major unrecoverable costs of ownership like mortgage interest, higher insurance and property taxes, and the opportunity cost of home equity v stocks/bonds. I'm not saying no one should own, but renting is also perfectly viable.
you did not watch the video did you?
Another nice information! Gotta add this in my next VIDS.
This was extremely useful and educational. Thank you. Liked and subscribed
You forgot home insurance
That's probably assumed in the mortgage with escrow. To be fair, your mortgage on a $400k property will never be $1,300 lol. Maybe $1700 at the cheapest.
@@jordanroberts7931remember he paid $80,000 down.
Agree missing HAO and insurance
@ sure in this scenario. But the vast majority of people just get into FHA loans at 3% down so this scenario is even worse for them with PMI. The most expensive "savings account" in the world.
It’s common sense he figured we all know
Too good and valuable information
Needed this, thanks for sharing your knowledge ✊🏼
Thanks for commenting, I will refer you to my trade analyst and accountant to make good income, go more on digital assets..
His what@app
+ 1 8 1 8 6 9 7 1 5 5 4...
This information really valuable like seriously!! I watch almost everyday now 💻
In 30 years your rent will be up to $3500 a month and your mortgage $0
Just buy land they aint making it anymore.
Real talk.
you forgot about Taxes
Your property taxes will be $3500 by then. The Great American Ripoff.
@@thetalkingboard Canadian my land taxes are next to nothing
Well if you feel broke or you wanna get richer, look at the chart for Apple,Amazon, Tesla, Etsy
,McDonalds. Then look at the chart for gold and silver . Then ask your self what you would rather invest
your hard earned money in . Also look at the charts for these stocks during the 2008 financial crises and
the global pandemic of 2020 . Did gold live up to its promise as safe-haven ?. Gold and silver crashed
together with stocks . so if you want to start building wealth with your hard earned money , which asset
is better ? The charts speaks the truth louder than the hot air coming out from the mouths of gold and
silver bags I rather invest In bitcoins , make more than enough of my capital rather than to continue to
recycle in gold and silver that always promises to be a long term investment year in year out.
The 2020 stock market has been weird and proven difficult to invest
Despite all the economic crisis this is the right time to start up an investment
Nice words
You're right investing is the key
It can be said a little simpler.if you want to be rich then focus on saving and investing.if you want to be
poor focus on spending.
Dude I really appreciate how you explained all this. Feels like I have an educated bro giving it to me straight.
You, my friend, are the best financial RUclipsr! This is an excellent video. People are told so many lies and they don’t realize it
Looking forward to this one.👍
🙏🙏
THANK YOU FOR THIS
Yeah he stay dropping jewels.
Thank you to all of you that has served our great nation and thank you to those that have helped make us money. Thank you Jaspreet.
Simple solution.......
You RENT a $400k house
You BUY a $250k house
😊
Smart
That's flipped. People rent the house they need today, but they buy the house they want in the future. In general, people buy more house than they would otherwise rent.
Good luck finding a 250k home in California.
@Susan Ananda I forgot the question mark lol.
Buy 250k house
Rent out two floors
Sleep in one
Is very simple..either you pay your own mortgage or you pay somebody else mortgage
Actually some houses are owned free and clear so you wouldn't be paying someone elses mortgage.
@@johnjacob688 mostly likely those houses paid in full are for long time home owners.. I'm saying for first time home buyers...take it from somebody has being paying a mortagage for more than 10 years
Yeah try leaving your rented apartment to your kids
Your simple outlook does not consider the math.
@@moneybags179 most family member think you owe them something thats why I neve rent to any of my family members
This channel is the most informative source I've found on the entire internet. Hell, it's more informative than any college courses I've taken.
Thank you for this episode. This information is a real public service!
Thanks for commenting, I will refer you to my trade analyst and accountant to make good income, go more on digital assets...
His what@app
+ 1 8 1 8 6 9 7 1 5 5 4...
My mom sold her home after 50 years for $285k. Now purchased retirement home for $72k. Put $100k in bank and $50k in stock market. She has no money worries and watches TV all day. Next door neighbor pays $1,000 month rent and has to work p/ t at nursing home. Who is better off ?
Your mom?
They're women, they're both miserable
What if the guy spent the last 50 years investing 500 bucks every month since he didn't have to pay for repairs, property tax and home insurance? He'd be worth 2 million.
The point is for your "Average US Citizen " buying a house and paying it off in 30 years is good for raising a family and then an investment. Plus, your chance of success is extremely high.
I am seeing some discrepancies here? Where did the rest money($63000) go?
To be in your mom’s position, people need to have $285000 home to begin with. Not everyone has it, especially those who are relatively new immigrants.
Well as a tenant you’re free from most liability that comes with owning a home
definitely especially now a days where tenants have more rights than the land owners do and in areas like mine even squatters have more rights than the land owner...
Yes renting is the most convenient. Just plan to rent during retirement and you would be okay. Just remember, the older you get the more conveniences you need/want. If a landlord provides it to you, be prepared to pay a premium
Words of wisdom. Thanks for sharing!
Brilliant and honest wisdom, am left speechless but to accept that knowledge is wealth, I thank you.
The math is wrong the mortgage would around 1600 dollars a month for a 3% 30 year on a 400k house. And get real property taxes on a 400k house are more like 600 plus a month. And mortage insurance another 100 plus homeowners another 150 a month. That's equals 2450.
just stick to the basic principles, do not worry about calculations. deduct the down payment from principal.
Im trying to look at houses in that range (400K) in this state, the monthly mortgage is double of what was mentioned. 🤔
Opportunity cost is huge and we tend to miss it for most of the time.
No mames
Aren’t you unemployed?
@@edwardlopez9061 Ach! Right in the logic! :)
What? Sounds like some random bot talk
Thanks for this.. you just saved me a lot of hard ache
Worst parts about renting in my experience: Incompetent property owners, sharing walls with inconsiderate neighbors and struggling to find parking in your own apartment complex.
You are very wise , I learn so much from this channel . Thank you 🙏
Thanks for commenting, I will refer you to my trade analyst and accountant to make good income, go more on digital assets..
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When I bought my 1st home in 2005, I underestimated the cost of non mortgage items, and the one thing that jumped out at me is maintenance, this is a very overlooked cost of ownership when going from renting to buying.
And taxes!
@@LindaN83
I meant non mortgage related expenses....taxes are taken up in escrow and built into the mortgage.
@@enigmathegrayman2953 Just because they're excrowed in, doesn't mean they don't rise.
@@enigmathegrayman2953 yes but taxes vary. My friend was not prepared when her taxes went up.
@@LindaN83
Never said it didn’t rise.
Very informative keep up the good work God bless you
Thanks I enjoy your work
Buy home to rent all the rooms 😂
Exactly, each room $750 /4bd home = $3k Lol
I have a co-worker who just bought a house and rent out all the room
My aunt bought a 4 bedroom home and rent out 3 up stair room for $800
@@RickiHockersmith83 yeap, here in FL , easy you find tenant for $800 per room , just lit more headache to deal..
@@LuMusk I once rented a room from a lady that had a bf staying with her that was on drugs. He broke into my room and stole my TV, Playstation, and Laptop. It was the first and last time I rented a room from anyone.
Thanks. This clearly explained. Neither works , so settled for van life.
Thanks, Do you experience difficulty in trading...Inbox + 1 (4 0 9) 2 0 6_1 3 4 6
Wow, this was actually more valuable for me to sit through than sitting through a Ramsey Show video. Lol. Sometimes he doesn't make his reasoning very clear. You both have the same idea, ie, don't buy a house when you don't know where you want to settle down, but I like that you broke things down. Thank you for your insight.
Excellent vlog!!!
I had a colleague who bought a small townhouse in downtown San Francisco in the 1970s. He is glad he didn't rent a place back then.
Your landlord (if they're smart) pays all the expenses associated with owning the home and still turns a monthly profit. Therefore buying is obviously cheaper, but it's not always practical/possible.
Fantastic presentation and wonderfully presented!
Good video, Jaspreet! Thanks for posting. A few things to consider. When buying a home the mortgage devalues over time due to inflation but rents go up. So for a 30 year mortgage that 1300 will stay 1300 over 30 years but the rent could increase to over 4K, 5k within that timeline.
Mortgage will also decrease to zero once it is paid off. And that’s huge for retirement. Social security and 401(k) distributions can only go so far to pay for living expenses once you retire. Would be good to live in a paid off home and only need to pay property taxes, homeowners insurance and maintenance.
This right here 👏🏾 ☝🏾
Yeah, invest 80k and make more money then invest that profit and make more money then repeat.
What people dont understand is that we earn money to live and we dont live to make money.
Create passive income, achieve financial freedom but dont forget to live.
16:34 As Macklemore would say “I have cash in the bank and gas in my tank”
Love the insights. I was considering buying a condo for my kids to rent, but it would stretch me too much and with the lost opportunity costs, etc., I’ve stepped back from that plan.
needed this thank you
I think the attraction in owning is that you are fairly sure that as long as you meet repayments you won't need to move perhaps every few years as Renters sometimes do.
This is particularly important where kids are in Schools they feel good in, have friends in the neighborhood etc..
Home ownership, especially after the Mortgage is paid off, also gives a person a sense of stability ....something that is missing in almost all other aspects of life these days.
The problem is that when the investment is your primary home if house price increase the overall cost of all other houses in the market will also have increased so u also end up purchasing an inflated property. So zero sun game really.. Ofcourse it makes sense if u move from higher cost area to lower cost
This is so valuable 🙏🏽
Brilliant!! Thank you for your thorough explanation!!!!
My dream home was the cheapest home in a safe area that I could pay off in a few years.
Ah, I got pretty close to that. I paid a little too much because when I was buying inventory was low, so I had to settle for a 3BR instead of a 2BR.
Patience is important if you're chasing the dream. I wish I had extended my apartment rental for another few months for my house hunt instead of buying early. Or if you can't be patient, at least stop browsing Zillow once you've decided to buy so you don't see the houses you could have bought.
@@ordinaryhuman5645 That browsing needed to be stopped 😅
Finally someone with common sense!
I’d rather a trap house in a shitty area so I can pay it off in a few months lol
One thing you didn’t mentioned was that every year the rent payment goes up and the 30 year mortgage payment stays the same . So the goal is if you’re going to rent to only rent for 2 or 3 years the most, not for 10 or 20 years . after 2 or 3 years it’s more convenient to get a mortgage.
Your property taxes are subject to increase every year as well. The local school district, community college district, university system as well as you municipal, county and state agencies may propose a mil increase on property taxes. Those jokers take turns raising taxes. Im still a home owner and would not suggest not owning a home or property to anyone unless they were under 25.
Thanks i knew about Michael Hill! He was my professor in Oxford and told us about FBC13 algorithm!
Very practical and feasible. I've made a few mistakes here, but thanks to your content, I'm learning and I'll DEFINITELY do better. New sub here!
the house I bought has a second kitchen on the second floor, very easy to rent out the second floor while I live in the first floor.
My neighbor are annoying
As long as its legal, go for it.
One thing missing is that housing insecurity isn’t mentioned when you rent ! I’m turning 50 and just bought my first home so I have rented my whole life so far and have been subject to landlords rising rent, sometimes significantly, and landlords selling the property so having to move with a few months notice ( 2 months notice one time) . Buying is security
Also I used my VA home loan ... no money down and was still cheaper than my last apartment!
@@bigchills7194 Don't mean to be a pessimist. But no money down isn't a good thing. It just means you have no skin in the game and a higher probability of defaulting in the future. You can pay down your home, but the cost of property taxes only rise and will get you.
@@bigchills7194 No money down means you got shafted buddy. Sorry to break the news to you.
@@LindaN83 Property taxes increase for landlords too. The tenants then pay via rent increases.
@@LindaN83 but for a veteran, they have preferential status on job apps so they are more likely to have a steady job. I think @bigchills71 did great.
Dude you’re awesome thanks for all your hard work.
Also that beard man on point everytime.
Spot on video and if you like changing out vanities, cabinets, flooring, etc., as trends change you will need approximately $800 per month for repairs and remodels as trends change.
I wish home prices in my area were 400k. They were that in 2004 or so.
Come to Boise idaho buddy.
We own nothing in this world anyways, might as well rent and get bent..
So when you die you soul won't be attached to things left behind. Aka R.I.P 🙏
Deep ! I’m still paying for the house though! lol. Just messing with you 👍🏻
But I can leave the home to someone I love.
:)
@@tishagonzalez725 lol
Good work brother as always
Really enjoy your value!
I like your brain speed. I don't have to speed up these videos by 1.5x or more 👍
It’s crazy, I have a rental property that I just paid off last year and now I get $950 a month in passive income. After the virus is done with I will be looking for my 2nd rental property!!!!
Wow that’s cool af how old are u btw 💯💯💯
@@Tonymontana_420 42
Frank The Tank Im following ur footsteps 🙏
Great work Jaspreet!!
Thanks for this Jaspreet! We followed almost every step before buying a house except the 20%. Unfortunately we have to leave, so we’re going in at 10%. But with zero debt, high credit, great savings we paid upfront PMI, got lower than market interest rates.
Everyone: try to save the 20%. I wasn’t willing to jump into my retirement to get out the bridge so I’m doing upfront PMI which cost $3,800. Do you really want to give $3,800 away? Rather keep it in my emergency fund as we move out. (We will be walking out with 4 months living expenditures in emergency. $3,800 would put us at 6! 😭)
Other than that - list is solid and that’s exactly what we did and was able to get all we want of our home that’s being built. We knew the floors, windows, types of filters based on how our previous rentals went! Knowledge that saved serious $$$.
In these uncertain times...... Keep things simple.
Thanks for commenting, I will refer you to my trade analyst and accountant to make good income, go more on digital assets..
His what@app
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