@@Lady.Luck.think the issue is people want to start out with 4 bedroom house instead of what they can afford. In my area of Jacksonville you can still buy 1bed1bath condos for $130k -$160k. Yes I know I know, people 40 years ago paid a quarter of that for a full house. Well times have changed, if you’re a single adult with no kids like the caller, save the money and get the 1bed1bath condo first while you then save for the house. I was making $46k at the time of my purchase in 2021. 2 years later I’m making $80k and saving a ton for our future home while still building equity. Because we don’t NEED the extra space, we’re saving to just pay the house off cash which at our rate of savings should be 5-6 years Depending on this callers area, he may be looking for instant gratification of a single family home instead of upgrading slowly.
Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
she's a known advisor. I actually did look her up curiously and went through her credentials on her webbsite... Top-notch! I wrote her an email, hopefully she's accepting new intakes.
I genuinely mean it when I express my stress and concern regarding the market crash and high inflation, particularly in relation to my retirement. I have been experiencing losses for quite some time, and while some may argue that crises can present opportunities, I am feeling overwhelmed. However, I understand that investing is a long-term endeavor, and it is crucial to maintain focus on the bigger picture and the long run...
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment...
This is why Dave's math on buying a house is laughable. 60k after taxes is about 45k. Dave doesn't want you to spend more than 25% of your take home pay, which leaves you with about $937 a month. Then, he says to do a 15 year fixed mortgage. At the current interest rates of 6.5%, this means the average American family can only afford a home that costs 105K, according to Dave. 😂
Right and with the cost of apartments, it doesn't make sense for people to keep renting because they can't afford his math. A 30 year fixed at 30% of your gross income totally changes the options for a person on a $60k income.
I'm 28, but I bought a home at 22 for $125,000. Put down $8,000. Refinanced in 2020 at 3.25%. Mortgage is $700. In todays numbers though I'd be paying much more. Got super lucky and I feel so bad for people in today's market
I pay 600 a month in property taxes. 3 bedroom 1 bathroom 1500sf ranch style home. You can't buy a trailer that burned to the ground for 125k in NJ. I'm not exaggerating either.
I bought mine at 24. I’m 31, and ready to relocate…I am not fit to buy a house right now in this economy. It’s very sad. Home pricing increasing, but pay is not.
I pay 700 USD/month in property tax--on a small, 80-year-old Cape Cod in Chicagoland, IL. As a homeowner: in addition to the ongoing, regular expense of the (1) property tax, (2) utilities, (3) insurance and (4) maintenance, I can't imagine having a mortgage right now.
Lets be honest, we all feel this guy, I don't know how many odds and ends he is working to make $60k. But lets just start with this. Most people cannot afford to live where they work. They cannot make enough where they can afford, do you follow me? Moving out far enough to afford something means moving too far from your job. What the folks at Ramsey need to start doing is giving these people some new advice. My suggestion is to retire the old "Just look in an area that's more affordable" this is very insulting; its like asking someone to find a part of hell that is cool because you know they are stuck there.
The caller is 30 years old. Who knows maybe his life circumstances change? Maybe he gets married at 35 and his wife is also a teacher making $60k? That's $120k between the both of them. At that household income, they should be able to easily afford a $300k house in Knoxville, TN (assuming they put 20% down). This also doesn't consider that his income should have increased somewhat over the next 5 years.
If we’re honest, we also need to admit this problem has only cropped up in the past couple of years. I know Knoxville well, in 2020 there were lots of homes you could buy for 200K or less at 3% for 30 years. He could have easily afforded a 3 bedroom home in a typical starter suburb and his mortgage would have been under $1000/mo. Rachel is wrong about the areas she’s suggesting (like Powell, a typical suburban community), those homes that used to be in the 150 to 225 price range don’t sell for anything less than 250. Also, by the way, the Knoxville is situated, a lot of the homes in West Knoxville run along the river, which is considered relatively nice property because of all the lakes and water things to do here in Knoxville. Into the east, you run into the great Smoky Mountain national Park. Beautiful scenery. There truly is no way for this guy to be able to drive out to a location for a decent starter home for 200k. They existed in spades just 3 years ago, but not today. I don’t know how to fix the problem except pray that interest rates go down and inflation goes down. That’s the only way people are gonna start putting their homes on the market and increase supply. In general, I agree with Ramseys advice - especially for people that haven’t been around the block financially, and don’t know what they’re doing. It’s not bad advice at all. But I do think that a lot of people on this thread, have a real point that the idea somebody making an average salary can afford a home in today’s market, at today’s interest rates, is flying out the window.
Yep. If you move somewhere where the homes are like 40% cheaper, you're probably gonna take a pay cut pretty close to that. So then it isn't even worth moving.
@@musicman1eanda honestly, I’m not even sure if that’s true. For example, Knoxville had never been considered a town with high home prices. It’s a nice small city, it’s right next to the great smoky mountain national park, it sits by the Tennessee river, which has a lot of dams that have created lots of man-made lakes and reservoirs for boating, fishing, water, skiing, etc.…, And has the University of Tennessee right downtown. You struggle to find a place to live (realistically) that’s turnkey ready for family of four in what I would call s Typical Suburban setting for under $300,000. Five years ago, that wasn’t the case you could’ve had a home for a third less, if not more. I actually looked up a few things after reading this thread to find out why this is going on, and was happening is something called the “stuck supply” problem. People aren’t selling their homes because interest rates have jumped so high, so fast, that it doesn’t make sense for someone who would like to move, but doesn’t have to, to voluntarily pay more money to the bank. I think things will get better lOnce interest rates come down (if they ever do), or we adjust to a new normal, where interest rates are simply excepted to be at six and 7% in the future. The stuck supply problem we’ll fix itself if that’s the case, because Time marches on, and circumstances change for everyone.
@@MarksTournamentsHe might be able to make it happen in 5 years for a 15 year if he saves 50% of his $60k income and puts 50% down on a 300k house depending on the interest rates at that time.
@@Tunechi65 Have you ever used a mortgage calculator before? Try plugging those numbers in at the current 15 year interest rate and see what the monthly payment is. Will be higher than the recommended 28%, but might be doable.
This is extremely validating. I live in Texas and make what should be considered a decent salary (and maybe in a small town in the Midwest, it would be). Yet I could never afford a house on this salary. Due to the cost of living, it's hard to save very much.
You are not alone. To keep up with rising cost we are beginning to see the equity of our home for what it truly is. Its becoming hard for us seniors not to ask the obvious question: Should we cash in, invest the money, and rent?
@@AnatolyIvor I know times are uncertain. I and my spouse are working on a ballpark estimate of $5M for retirement, and I have a good 6-figures each loaded up for this, you mean we can't do it in 5 years at most? I'm nearly 55.
@@marcoerrett Very true, people downplay planners role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license-fiduciary advsors. Thankfully, I came across someone of practical knowledge, and decades of experience, I liquidated 200k of 325k from my 401(k) it has yielded nearly 1 m after subsequent investments so far.
I bought a house IN FULL, cash, after saving up on my $31k income for 4 years....sounds to me like you have a skill issue if you can't "afford" a house with 2 times my income...
The math is just ridiculous on their plan and they know it. 60K is about $4k a month in take home pay. 25% of $4k is $1,000 for a mortgage. That means, by their standards, he could only buy a $120,000 home ASSUMING he puts down $36,000. That would be $1,000 per month. Find me a Zillow listing for a $120,000 home that is decent within 100 miles of where he is living.
I put $16,000 down on my $150,000 home and pay $820 a month. I got it a month before interest rates went up. Does interest rates make THAT big of a difference?
The housing prices are going up faster than any working person could save. I was really hopeful of my investments this year, but all my plans have been disoriented. I've been studying the housing market and I realized some investors made millions from the recent recession and I was wondering if such success rate could be achieved in this present market.
I feel exceptionally lucky I started investing in my early 40s and compounded my income to create more cash flow. I opted for a more aggressive approach and so far I've made over $350k in raw profits from just q1 of 2023 from mainly blue chip stocks, S&P500, coins and high yield dividend funds. ever grateful to Trisha Jean Webb my F.A... House and cars all paid off and no other debt.
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
@@susannnico Professionals just take money from you. Yu don't need anything from them you can't find online or already know. Just buy a few popular index funds and ETFs like VOO and VTI and you are good for. The professionals nickel and dime you to death and end up costing you big time over time. They might even buy into funds that give them kickbacks so not even in your best interests. Only you care about yourself so you have to do it. Once you set it you can just forget it and let grow and auto invest however you set it up to auto invest and leave it hands off. They do no better and actually do worst than those that just stick to the advice I just gave. That advice made a little more sense like in the 80s and 90s but not today where you can everything yourself and do it so easily.
60k is the average salary . Back in the days one with an average salary could support a family, have a house, and a car. United States is not what it used to, inequality is getting out of control
Thats why I compare America to the Dallas Cowboys. Everyone keeps telling me how great we are, but when it's time to prove our greatness, we fall short time after time.
@@agees924 Boomers are living off fat SS and pensions that the current working class pays for. We will never get these benefits and yet they are trying to gut our retirement and raise our taxes to pay for their benefits so they can continue to stay in homes we will never afford. The political divide is not left vs right. It is old vs young and young people need to stand together and cut SS taxes and benefits so the economy can normalize.
Both can be true: Housing has always been a long term financial goal, and often requires sacrifice to achieve it. First time buyers between 22-35 years old who failed to buy pre Covid are getting absolutely screwed. More than any other generation.
It will take longer for wages to catch up but if we stop the massive printing of money, keep interest rates high for long enough to stop inflation, stop the rampant immigration, the prices will likely normalize relative to income. Investors won't buy everything, too much risk.
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian.
I live in Tampa. I'm a teacher and I make the exact same income. Had I not purchased my 100k, 840 sqft condo in 2020 early in the pandemic, there is no way I could afford it today at nearly 200k. My old apartment rent went from 1000 to 1,900 in the three years I've owned my condo .... It's only a mile down the street. The fact is that teachers, cannot buy a house on 60k as the economy currently stands. And I don't see it changing soon. And it's a darn shame because they want teachers to be highly educated. And who's going to pay those student loans?
I wouldn't buy a house if it does not have at least half an acre of land minimal. I would never buy a condo---I want a place to thrive not live. I'm fine with renting otherwise. I want to be able to do whatever I want on my property as long as it is approved by city hall.
Buying a house has always been difficult in every single generation. My grandparents bought a house in Mexico in 1920's for 400 pesos it was a terrible sacrifice. My parents came to the US and bought a house in the 1980's very difficult I bought a house in the 2010's it was a sacrifice and I am a teacher as well. Buying a house anywhere is a sacrifice and it will never be easy.
But all you have described have never had to buy half a million to million dollar home. The newer generation knows better than any about sacrifice. I will have to sacrifice having a family and social life for the next 5 years to purchase a home. Not fun- Edit: more like next 10 yrs because licensing for healthcare providers is crazy just to earn 40k more annually
A house has never been an easy purchase. I had to save all in my 20s to have a good amount for down and misc house related stuff in my 30s. Some seem to think just bc you have a decent job, you immediately deserve a home…it’s a lot more than that.
@@SweetPotata10 sir I had to go back to school to change professions bc 80k was not enough for rent, health insurance, car insurance, food, no paid holidays, no paid vacations, no retirement match, etc. No one should have to work 5-6 days a week to live ans provide there own basic benefits which is what many employers are doing. You really do not know the struggle. Sorry let me add I started saving for a home at 21 while paying tuition. Do you see these tuition prices even at public schools? Not dorming- just class and additional fees. Its crazy. Its not about playing victim, its about being empathetic and recognizing Houston we have a major problem
The caller and I are in the same situation. We both are 30 make around the same a year and are single. The housing market is definitely not friendly to us making less than 100k/ year.
@@MarksTournaments are you sure? What’s with all the CA and New York license plates in Miami traffic? They all put locals out of the market. I wish you all would go back to your gas-stove/wood-fire free states.
My wife just got a job at a community College in knoxville and there were over 200 applicants. I can't believe how competitive a 50k a year job is. Sures there's great benefits but thank God we have 2 incomes
That’s insane over 200 applicants for a community college jobs. Well there’s a lot of pros. Most of those are 9 month positions, but like I tell most people that I don’t get paid for those months not worked in the summer.
This is depressing…I’m 30 and I make the same also and I’ve been renting for the past few months, feeling like I’m such a disappointment for not being able to afford a house that I feel I deserve. But I’m starting to feel somewhat proud of myself since I’m also taking care of my 2 kids and there mom that I’m separated from while also living comfortably and not struggling with bills.
Im 29 and feel a similar way, most of my older cousins are married and bought homes while I decided to purchase a mobile home in a cheaper part of my state. Sucks how if I literally entered the job market and graduated just a couple years earlier, I couldve bought at least a nice townhouse before the BS price runup.
Well you said your problem yourself. You’re paying for your 2 kids and their mom. The only way out is to make more money sadly unless you can convince momma bear to come back and get married and pay for the kids and mortgage payment with you. I don’t know many 1 bedroom houses lol they are made for families aka mom and dad both pay. You got it brotha put the head down and grind to make more money you can do it!
What did we think would happen by letting corporations gobble up all the residential real estate?! 25% of the homes in florida are owned by corporations. Including private investors, it's probably closer to 1 in every 3 homes being owned by an "investor". That's either going to keep prices out of reach for most people, or contribute significantly to a price correction. I feel bad for young couples today staring at a $400k "starter home".
Yeah it’s messed up how these investors have taken over. It’s happened right here in Ohio even with the bad neighborhoods. They renovate them then charge astronomical rent or purchase prices.
After people die, those homes come on the market all the time. Those are often well built, in established neighborhoods, and may simply need gradual updates to personal preferences.
Ramsay says you should get a 15 year fixed mortgage with the payment no more than 25% of take home pay. With 20% down, the median priced home in the US would mean you need to make over $250,000 a year.
I agree with Dave Ramsey's program, but lately it is just theoretical. I completely agree about not being in debt to the extent that it's possible. But this caller just illustrates that sometimes it just becomes a."only for the rich" situation. The best advice they can give is get a higher paying career? Discolor is dutifully, working multiple jobs, paying down his debt. Maybe this caller has another three years to pay down all of the debt. Then another five years of putting life on hold to save for a house. Pretty soon he's going to be pushing 50 with nothing behind them but backbreaking work trying to accumulate the bare minimum on the tiniest, most rundown piece of real estate on the market.
Isn't the median priced home ~400k? I know there are plenty of places in the States where that is low, but there are plenty more where you can easily find a condo or smaller home for less than that. My family earns nowhere close to $250k, but we would be able to afford a home in this market. Thing is, similar to how people say when you sell (stocks) during a downturn, you lock in your losses. I know we would be overpaying for anything purchased and being upside down on a mortgage is scarier than "missing out" on owning mortgage now. We are being patient to either wait for things to improve or a place to show up that is worth the potential risk.
This is such an important video. It's so frustrating to constantly feel like you need to make more and do more, when you already have a good job. But it's not enough to keep up with the cost of living. Especially when you're single. You shouldn't need part-time jobs and side hustles which lead to burnout and no life.
@@dianabenavides2913we have a whole separate problem..I got 3 kids I need to train to live in this mess.. it's unrealistic to think my daughter needs to be making the same or more than me at 80k to afford a rent
@@crzycolchris personally i see two strategies play on the defense or offense like in soccer you play defense by always being back and offecnse always attacking. In finamce playing defense means you gaurd and budget every dollar and playing offense you work harder and make more money. There are people that know how to live on way less than that and still save money each month.
We bought our first home in 2017. It has almost double from what we paid. I couldn’t imagine trying to buy a house now, even though I’ve had a significant pay bump since that time. Imagine how bad things are going to be in 10-20 years.
@@Ididntwantayoutubehandlit doesn’t have to.. especially when we’re roughly 4M homes behind on demand. Once interest rates start getting cut again it’s only going to force price up higher
When she said “look into a townhome” and then said “owning a piece of real estate is a great option to have so I would continue to keep searching”…… Now Rachel….
Her advice is the same as Dave’s, who built his fortune from the ground up. He lives in a multimillion dollar home too. Why shouldn’t we take financial advice from people who are winning with money? Nepo baby of sorts, sure, but she’s here working, earning her keep, and has been for years. She’s still a credible source.
Her guidlines with the current housing market just isnt feasible for most people. For example, if you bought a $300,000 house with a 20% downpayment (60k) your total monthly amount for a 15 year fixed loan at current interest rates (6.5% currently) would be $2,500 without utilities. So in order to fall with in the 25% guidlines for take home pay, you would need to net in a little over $10,000 a month to make it work which would be $120,000 NET. I don't know about everyone else but I don't know many people that bring in that kind of money per month. It just isnt practical.
And that’s if you are lucky to live in an area where they still have 300k houses. In Miami, FL, you can buy an old 2/1 condo apartment at best with that money. And then add HOA fees.
Exactly. $60k per year is about $4k take home per month which gets him a $1,000 monthly payment.. So, for a 15-year fixed rate mortgage at current rates, that’s gonna be about a $115,000 home.
Yeah at first, $300k doesn't sound like much. My place was $335k, and I put 20% down for a 15 yr. My mortgage is $2k/month, but that's because I got an APR of 2.4%. So an APR of 6.5%-7% really fucks you over.
It's always interesting to see others situations and perspective. I guess for me and my friends/colleagues, we all earn about similar so household income of about 250k-350k is the norm. Always have to remind myself that I'm in my own bubble with similar people so not everyone earns what we do. And once upon a time we were earning far less as well to get to where we are today so mobility for higher income is high in America for sure and living the American dream is real. But earning 60k a year for a 300k house is pretty insane to do. It is doable if you have a big sizable down payment but with high interest rates it will be near impossible. You will have to be house poor. When my wife and I bought our first home it was around 290k in 2016 we had a household income of only about 150k at the time and took a loan of 230k. It was still tough with this income where we budgeted a lot and lived under our means, I can't imagine earning 60k a year. After 7 years we have our 2nd house and since our focus was to pay off our mortgage we are now mortgage free on top of earning a lot more income. Feel very blessed.
You mean one of these people actually believes it's possible to improve their situation? Normal everyday people do NOT CALL because they think their situation is helpless and hopeless.
I think it would be helpful to do another video like this- but with Dave & Team putting some numbers together on various home prices & down payments and such for a 15 year mortgage etc.. - so people could be helped by looking at what they need to work for as a goal… a roadmap. ❤️
It still doesn't change the fact that the home prices are unaffordable. They admitted it in the video... The reality is that we need a fix for the cost of housing. What this fix is, I do not know. But the reality is that the majority of people DO NOT make much more annually than the man in the video. The average salary in the U.S. currently is right around $60k. That means the vast majority of people living in this country right now CANNOT afford to buy a home on their current salaries. It doesn't matter which way you put the pen to the paper. Mathematically it is NOT possible to follow Dave's philosophy and own a home in the current housing market on a $60k annual salary. Therefore, we need a fix for this current housing crisis. It's not just a personal finance issue. It's an issue with the market itself, supply, demand, and the overvaluation and inflation of the prices of said homes that are on the market. Ultimately, as much as I hate and loathe the federal government, some kind of action and regulation is going to have to take place to fix this issue.
The cost of homes isn’t a problem that can be “solved”. The market dictates the prices of homes. What an individual can influence is their household finances. If it’s really important to someone to own a home, but their income cannot get them to the home they dream of, regardless of the market, then somethings gotta give. You are in control of your income. You are in control of your budget. You can control how much down payment you save up which in turn increases your buying power and affordability. If you’re frustrated by this paradox, don’t let it get you down. Tighten that budget, drive up that income and save up the biggest down payment you can. Then start looking at houses based wholly on what your personal circumstances can afford - not by zip code or what the bank say you can borrow.
@@JoshuaParnell-k2yit’s possible on a $60k salary but not easy. It’s all about the down payment. Let’s say you wanted to buy a home in the $250k - $300k range. Could you take 3 years and save up like $125k for a down payment? What if you worked an extra job on top of your salaried job for those 3 years? Could you save $3500 a month for 3 years? Or maybe stretch it to 4 or 5 years to come up with the down payment. It’s possible. Not fun, but possible. The reality is that a single person probably needs to make $100k or more to more easily buy a house. That’s just the math today.
This caller represents so many Americans today and it’s saddening. Best of luck to him!! I was fortunate enough to find a couple who needed to downsize and had contingencies -which actually worked in my favor as well. In 2021 I went into contract with them for my first property, as a single parent without even having all that was needed for closing cost. I accepted the contingencies as it gave me extra time to work like a dog to come up with closing costs and gave them time to find a new place to live. I have no doubt in my mind this was all by the grace of God❤ today I live with my girls in my condo peacefully and now focus on paying off all my debt. Had I only focused on paying off debt first, I would’ve lost this amazing opportunity. My best wishes to the caller and hope he can find a gap to buy the home he so much desires 🙏
Our family makes 90k a year and we feel like this. We're in ohio where homes are less than the area he is in, and we feel the same way. Inventory is so low that everything is going for 15-30k over asking. We decided to pause on looking for a bit to save accordingly. We've been watching the market for a bit and it's frustrating when you see that 6-9 months ago this wasn't happening.
She can't do anything else really. Following Dave's plan strictly means that only high income people can buy homes. At the end of the day it's up to the people listening to decide if they want to follow the plan and be priced out of the market. Or if they want to do a normal 30 year fixed like most people do.
I know the feeling. In 2019, I was working a minimum wage job and doing a lot of volunteer work because that's what I felt "called" to do. If I would have been working a real job in 2015-2019, I would have a house right now. We finally started working multiple jobs in 2020 to save for a house, but the prices went up faster than we could save. Now, it feels like we will never afford a house.
@@alinatamashevich3354the average person can’t. Foreclosures can’t be purchased on a typical mortgage in almost every circumstance because a bank won’t touch it and most people don’t have that cash.
@@c2s2942I am average and have done 2! My first one was a regular 30 year fixed rate mortgage, it was a HUD repo. The lender will be happy to have the property sold, so they are looking to unload it. Banks deal in MONEY, owning real estate is not what they do.
I moved to a small town and bought a small plot of land and put utilities on it for $15k. Then I financed a 16x75 singlewide for $106k. I make $60k/year and my monthly mortgage is $1.2k/month. While my takehome is $3.8k/month. I live comfortably and know no matter what I own a home by the age of 60 even if I do nothing to pay it off early.
@@budc.8172 That singlewide was a waste of money though... They always go down in value, a lot. If you plan to live in it for the rest of your life you'll be okay though.
So following the Ramsey principle of payment shouldn’t be more than 25% of your take home pay and also a 15 year mortgage with 20% down that would mean they could afford 100,000$ for a home.
@@aolvaar8792 That's 50 years ago and in Cali on the coast... That's a very specific market. The lot the trailer is sitting on is what is worth 1 mil+, not the trailer.
It really made no sense to me when he said ''It doesn't matter whether I'm right or wrong, whether the market goes up and down. I'm good regardless''. People are really losing a sh*t ton of money out here. I personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!
Sometimes, the strategies to stay on constant green in a downturn markets are quite rigorous for the regular-Joe. Matter of fact, they are most successfully carried out by experts who have had a great deal of skillset/knowledge of the market. Maybe you should hire one.
@@freedomisEexpensive-08 Agreed! I first contacted a Financial Analyst because these days, it's easy to buy into trending stocks, but the task is knowing when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. I’m currently 60% up in profits just in 5months with my initial capital of $160k
@@NotyourBusiness-urto6 Sure. NICOLE DESIREE SIMON, a well-known person in her field, is my advisor. I got to know her through my wife. It's my wife that has her number, but you could further investigate her credentials and contact her yourself.
The advise is crappy as well. Something I just saw. Our national debt hit 32 trillion June 16th less then two weeks later we added 122 billion. This is not sustainable.
@@winterhavenfarmlife agreed... the numbers are so big they feel made up. Once the student lan payments resume, the American financial crisis is only going to get worse
I'm a single woman in MN, I make $24.73/hr plus $1.25 because I work overnights The cheapest rent in 30 miles is where I live now, 1bd 1ba $1,200/month. It's crazy, I pay my bills but have like $300 left over every month. It's not much room
In 2019 if you i followed Dave's plan and went to pay off my student loans instead of buying a house i would have paid my 40k student loans but i would have need it 120k more to buy the same house i bought in 2019. Buying a house should be the number one priority because it caps your spending and stabilize you mentally to focus on paying debt faster. No financial advisor is always right because circumstances changes but their precious opinions never do.
Well there is the math, as you mention. But I think Dave also factors in psychological, emotional and values based concerns into his business of financial advice. He doesn't make a secret of this. It is possible you'd come out higher in wealth numbers by other ways than the Ramsey style. But Dave Ramsey puts high value on not being in debt and being independent of a lender. He feels that there is a certain psychological strength and freedom that comes out of being debt-free as a way of life. And that furthermore, that sense of relief or peace that comes out of not owing anyone any money is likely to give a better mind setting to make more positive decisions. I do think the mortgage conditions of his plan for home ownership is tight and needs a serious re-look.
Back then yes, buy as much home as you could afford. Now? buying a home is not currently a realistic investment. Rates and prices simply do not math right for that to be the case.
Wow. Did you seriously just tell a teacher they need to change jobs so they can buy a home? What a chump move. I guess we wont have any teachers anymore cause none of them can buy a home. Great advice.
@@ZT_313the fact you even have the nerve to ask this shows how little you care about society and raising future generations. There is more to this world then $$$. Teachers deserve to be paid a wage where they can afford basic transportation and the ability to own a normal home. Without teachers no one would learn or grow in society and our progress as a nation would collapse very quickly. There already is a teacher shortage due to lack of wages which is causing crowded classrooms and reduced learning opportunities. The Ramsey show is in a wonderful position where they could be lobbying for wage increases for teachers and other critical jobs across the nation. They have the wealth and influence to make a difference and join the cause. Instead the Ramsey team supports the idea of {we don't need teachers, quit your job, leave all those kids out to dry, and focus on yourself. It's fine. You can't own a home with that job so just leave it to get the important stuff. That's what matters, not the impact your job has in society. Forget others and be selfish}. Teachers should not quit their jobs. They deserve to be treated properly and paid for their efforts. The work they do is more important than any doctor or lawyer will ever accomplish and each of them deserves to be paid for it. Government and society have failed teachers, and someone with the Ramsey shows influence and money should be saying something about it instead of supporting that failure.
It's because people like dave ramsey bought all the homes in 2008 and plan to keep forever and constantly increase the rent. I don't know why you would ask advice from people who cannot relate.
I half agree and half don’t. People using real estate as an investment has made the supply of homes to buy for the average consumer go down. So yes, it has made it more expensive. But I think people go to Dave because he is an example of where they want to be financially. It’s nice to have mentors that have walked the path to success. All of that being said-it is tiring to hear Dave tell people that owning a home has always been hard and people are just coming up with excuses… when the reality is, wages and prices of homes have never been as far apart as they are now.
It completely depends on the market. I teach school. I have a masters degree and five years of experience. Plus, I work any overtime I can get and work a second job. All of that together gives me a net pay of around 55k. My wife and I only have a small car payment-which should be paid off within the next year. But rent where I teach in Arizona is around $2500 for a basic two bedroom. We live about 30 minutes from where I work, and rent is still around $2100 a month at the cheapest-not including fees and utilities. Houses are only more. So making some kind of blanket statement is silly. I am leaving my job and leaving the state because I can’t afford to live there.
There is a huge shortage of housing due to no building going on during Covid. Add in how Biden has allowed over 7 million illegals in on top of that sucking up all the cheaper housing and I don't see a lot of downward pressure until the entire economy collapses.
too late, i bought one a couple months ago. Mortgage/taxes/insurance/ = $2,300. Renting an apartment $2,100. Both situations I had a roommate. There aren't many good options.
I don’t see that they helped this man in anyway. A lot of empathy and filler talk, but no resolution. You know our current working class is fucked when not even The Ramsey Show can give you a straight answer on where to begin to finally resolving your issue.
@@JakeStewart1343that is true but doesn't solve the problem. The fact millenials and Genz are having a harder time affording a home then past generations did is really concerning.
@@chrisflo24 It is concerning but the newest generation is better off in other ways. Knoxville isn't even that expensive, there are livable houses there for $150k and he's making $60k so even though Ramsey won't recommend it, if he did a 30-year loan it would be only 30% of his gross even at todays high rates. If he gets married, gets a raise (he JUST started the job), hustles harder, etc., refinances for less, or fixes the house a little while he lives and then resellls in 10 years he would quickly become a comfortable homeowner. Where I live the wages are about the same but you will absolutely never find anything close to livable for only $150k.
This is the biggest problem I have with the DR plan. There's currently no way you can afford even a garbage trailer in a ghetto on an average income and have it less than 1/4 takehome on a 15YR fixed. I'd have to be making nearly 200k in my area to afford an average 1400 square foot home and keep it below 1/4 takehome. Prices are still above 350k for an average home and interest rates are like 8%!! It's impossible.
Couldn’t you get a 30 year fixed and then just pay a bit more towards the mortgage loan every month? Every little bit adds up overtime, even if it’s a $100 extra every month you’re adding to the monthly payment
Dave would say you are looking at the wrong neighborhood of the garbage trailers in the ghetto. You need to look at the sewers in the ghetto like the Teenage Mutant Ninja Turtles did. I am just joking, Dave Ramsey.
i got a house in 2016 making $45k/yr. Totally impossible now to do the same thing. If I had to get another house today, I'd have to move to the W virginia mountains and find a house in an abandoned coal town.
@@CressidaWrench my house 2x in over 6yrs. My salary definitely has not. It'd be nice to move for better schools but the house buying attempt was a disaster. Must put 20% over asking, waive a home inspection, and accept closing cost. And for $300k you get a POS 'fixer upper'. We lost all offers anyways because 'investors' pay with cash for the affordable houses so they can flip them into the upper market. So the working people get to compete against these corporate house flipping companies.
I am right there with you. I am teaching in AZ making $60,000 on 2 jobs. The only way me and my wife would be able to afford a home is if we moved to the middle of nowhere. She is still in school too and I teach at a school close by. I am finding every little way to make more money. I opened a better savings account that gives 4% plus in interest. I put what money I can into the stock market. I see if I can work more at my second job and it still isn't enough. I have comtemplated just searching for a new career all together, but I really enjoy teaching with the school I am with now. It's a tough call man and there are many others in your position.
This is my story. Make the same working two jobs in the same state. Unfortunately, just to rent a simple two-bedroom apartment anywhere near (around 30 minute drive) to work is $2100+. I’ve made the decision to leave education over it. My wife and I don’t spend a ton, and we try to live beneath our means… but when I only take home $2500/month-even with a Masters degree and 5 years of experience-it doesn’t leave me with much of a choice.
I am with you in teaching and income. Been doing it for about half a career now. I am also in one of those bottom 10 paying states. You might have to seek out a new career as bad as I hate to say that. People keep saying ‘well it will be a nice retirement if you can make it there.’ But you have to be able to live first so I’ll leave that there.
@@Anita.. you are right but I can’t control others. The only person I can control is myself. So I have to seek out the best opportunities I can whether that be education or private sector. Always been a free agent and stay loyal to people not companies or boes.
@@Jedi12789 we can control our future! There’s this mentality that asking for a fair shot or for things to be made appropriate by our government is immoral or even “communism” but we need people that live in this country to have better lives. A select few will have an amazing life here, but that shouldn’t prevent regular, hard working folk from having a home and health insurance.
I think I’m today’s market the “hard line Ramsey way” is probably not the best for every circumstance. My wife and I did 10% down (VA), at 30 years. Yea it’ll stretch us, but I cannot predict the future. I cannot predict if home prices will soar up or down. We pulled the trigger. As long as you can afford the mortgage, taxes and utilities, etc go for it. But I believe the 25% of your take home pay, 15 year, 20% down is not feasible anymore.
When I was a kid, my mom had to quit teaching and switch careers -- because it didn't pay crap. The only way you can be a career teacher is if you have a partner that makes more money than you, if you worked in the private sector before going into teaching and have money saved up, or if you have a side hustle that pays you a substantial amount of money.
@@erickn7985 She might still get into teaching -- and be in high demand. I like studying certain branches of math for fun, and I've come across a number of teachers that worked in engineering before going into teaching. From what I've noticed, they make better teachers -- because they seem to understand math on a deeper level than the typical teacher. They do things outside-of-the-box and promote understanding math on a conceptual level -- instead of just memorizing algorithms. When I was a senior in high school, I had a C.P.A. that taught business classes. She quit after a year. She was shocked at how little she got paid -- and complained that certain students got on her nerves.🤣 I really liked her.
Rachel can not relate. She had her house bought and paid for bu Dave. She doesn’t know what struggle feels like. She probably doesn’t even know what her house is worth.
How do you think most of the world is surviving, with wars, inflations, hyperinflations etc ? Most 3rd world countries survive by building generational wealth, often living in houses that were designed to house multiple generations of the same family etc. Harsh reality is catching up to you.
Major issue I'm seeing in our LCOL area is young people getting constantly beat out by all cash buyers. How many people starting out can do that, even if it's a starter home.
There are no starter homes unfortunately. That ideal existed when just your wage alone could afford you a starter home! Hell, you can't even RENT now unless you make $10k per HOUR!
@MzCollegeGurl11 that ideal existed 3 years ago precovid. There are still starter homes where I live but you better have cash, and THAT is the killer for every day people if they don't pool together as a family and how many can do that either??
@@Elizabeth_lowkeyluxuries then that means there are no starter homes anymore if the average person don't even have CASH to save up for it. That idea no longer exists and will continue to. Rent prices are now at a mortgage rate.....you think the average folk can afford that??!! Insane!!! Preposterous greed is what's going on....and that's IF you have a family to pull together and live together. Not all family are good family unfortunately.
@MzCollegeGurl11 I've only had my home a few years and I had to cut my home expectations in half to get into something. Now, I wouldn't be able to afford it. I think if I hadn't have made that move, I'd probably be RV-ing now because land is hard to afford if one wants to go to a tiny home. Insanity. More affordable housing needs to be built because even with the baby boomers aging out of their homes, going into nursing care, there is not enough houses for upcoming generations and general immigration.
It is insane that we are not even able to afford a place to live anymore. It is inhumane. How can people continue voting for someone that does not care if we end up in the street while working 2 or three jobs? Meanwhile, they are giving freebies to people that are not even paying their share in taxes. I make 61K and houses around my area go for 300K. I applied for a mortgage because I have a 20% to put down but they told me that with interest rates I was over the 50 ratio? and could not qualify for a loan. They could only loan me $200K which is not enough for a house. So we are left here with literally no choice. I hope people open up their eyes next election. I know in the end politicians do not care about us but there bad and there is worse. Right now we cannot even buy a house at all so we might as well give a chance to someone else and hope for the best. People say to move somewhere more affordable. Where? In the hood. I am a female and very petite. I fear for my safety. I have a decent job with no debt and a 20% to put down. I should not have to compromise safety just to find a place to live. Or to move away? My family is here. My parents are getting old. I do not want to have to move away from them. Memories is all we keep from our loved ones when they are gone.
@@MoneyTalkwithMPWhy do you people love throwing around that ignorant talking point? I was making more money than my parents and grandparents were after university and couldn't afford the homes they had. And don't say "well you're just bad with money" because it'd still be impossible going all-in! Pointing out a fact isn't having a "victim mentality."
@10000hpgarage Yes, its a fact that home prices have skyrocketted while salaries did not. No denying that. But sitting there and complaining aint gon do a damn thing. You have 2 options, make lot more money as its a highly competitive world to afford housing in same area or move to cheaper areas. We have to take action!
I live in the Knoxville area. He’s right, it’s unbelievable what below average homes are going for. Generally the only ones buying homes are out of town cash buyers or people just swapping houses. First time buyers are absolutely priced out of the market. Meanwhile the realtors are rejoicing…
Just googled it and plenty of homes under 200k. Plenty affordable at 60k. Heck plenty of apartments for a grand or under. If you can't put away money for a few years on a 60k salary with a 1k or less apartment then you shouldn't be griping. Also being a teacher in the first place is an awful idea
@@Spitzer3964 yes unless you're absolutely dumb as rocks with money or math, or both. 60k is like 3400/mo takehome where a house at 200k with 20% down will run you like $1300/mo at the current interest rates. If you can't figure out how to make that work then there's no hope for you
@@stevenselleck5460 Chill dude…Sorry it’s been 9 months since my comment. I thought you were suggesting there’s houses for sale at $60. However, if you don’t live in the Knoxville area your “plenty of homes under 200k” is a stretch. Where do you live?
Honestly this is why Dave's advice on buying home is complete garbage. It makes absolutely no point to save WAIT and get a 15 yr loan. You can't save fast enough.... bought MY house 3 years ago and my house value went up over 100k.
That's the problem. A few can do it, but the majority of people would not be able to do it, there is just not enough room for everyone to go outside 30-40min away so people are forced to stay in debt renting in the places they are in. Somehow, magically, people will find all that they need in no time.
All about location and choices. It’s fine at the two places I live. Always been about 25 minutes to drive 22 miles where I live for work and see grazing horses,farmland,and bald eagles. About 20 miles of highway with no toll. No reason for another 20 minutes. If you add up all the minutes I have sat in traffic jam the past 20 years it would probably be around an hour. One of the reasons why I left Palmdale California and the space coast of Florida for Oklahoma years ago. Now I have a beach condo in Florida on the gulf coast south of Naples and don’t even need a car or care about traffic.
Even if you make $100,000 per year, it is nearly difficult to buy a home in places such as New Jersey, New York, and California and it is much more difficult to compete with buyers prepared to pay more than the asking price.
I think they did answer his question. He'll have to manage his expectations about what he can afford or figure out a way to make more money, probably both. I am pretty much in the same boat as he is. The good news is that while the housing market is bad, we can be working to set ourselves up for when the housing market becomes favorable again.
“Becomes favorable again” lmao. Good luck with that. Why are Americans so delusional and stubborn in their quest to buy extremely overprice homes, the prices of these homes should be criminal, because they are not worth the price tag, the 40% mark up. Good luck with that incoming train wreck. America loves to learn the hard way, oh corporations are screwing us, don’t worry just “work harder”. Delusional.
Homes are so expensive now. I got a 2 bedroom townhouse for around 250k in a relatively cheap cost of living area and put 20% down but the 15 year adjusted mortgage is still around 30% of my gross income making around 80k which is a decent and above average salary for my area. My interest rate is 5%+ because I bought in last year but average homes are still too expensive for the average or even above average salary. Doing 15 year mortgages on anything other than a shack these days is really difficult without a substantial down payment.
Clearly the government needs to put into place some kind of policy regulation that stops pre-existing single family homes from being used as a business and they need to incentivize businesses to build new homes if they want to use them as rentals. This isn’t fair and it’s heartbreaking for those of us who have worked sooooooooo damn hard our entire lives to try to own a home and have a family that we could PROVIDE for.
Much of the problem is these real estate moguls (Like Dave) buy up all the housing, do a few upgrades, and "flip" them for a much higher price. Or rent them out (or turn them into Air BnBs) to make their money. Congratulations to the wealthy. Those of us living on $65K (my retired pay) can't find anyplace to live except some cheap trailer park.
That’s not the problem. People have been flipping houses forever. The problem is interest rates at 7.5%, inflation, and the 30% appreciation of real estate in the last 3 years. If you make $65k in retirement, that’s an amazing retirement income. After the past 40 years you should own your home and have it paid off. You should be sitting pretty.
Your retirement situation is the bed you made that you get to lie in. You had 40 years to avoid that, including some of the greatest economic booms ever seen. How about those of us in our 20s, who never even got the chance to buy a home before this terrible market set in?
@@AK-jt9gx You want to own a house in your 20s? When I was in my 20s I was working at minimum wage jobs (back then it was $2.35 an hour) until I decided to join the Army to help pay for college. I lived with roommate friends. I certainly couldn't have afforded a house. Few people could by themselves. You start at the bottom and work your way up. At least that's the way the system used to work. Yeah, I wish I had saved more. That's that I would suggest for young people in their 20s - put more away for retirement. It's hard though, because when you're young you don't really think about being old someday.
Teacher in California making 60k John took the words out of my mouth " I did everything right up to this point how come I can't afford a home in the small town I grew up in. Husband and I take home is 8k a month which 3 years ago was great now, I still can't afford a decent home. A decent home is 600k anything below is a more than just a fixer upper. We are now moving back home to my parents to save up as much as we can for 20 percent down. hoping next year prices start to drop. Making the sacrifices now before we start trying for a baby next year.
You hit it right on the head, things have changed so much in 3-5 years. My family takes home $8K a month as well, 5 years ago you could get a decent home in Canada for $450K. Now it's north of a million. Yet we still take home $8K/month.If you then add the massive inflation on food/gas etc.. You are even way further behind 5 years ago.
In time home prices will come back down. I will never be able to afford my dream home, even if I worked two full time jobs. That being said I am a homeowner. You have to lower your standards and purchase a home within your means when the right opportunity presents itself. $300,000+ homes aren't the reality for most Americans.
60k salary is very average. How are average Americans supposed to fare these days?People with a stable job and an education are scraping by, let alone millions of people who have lower end jobs. This is not sustainable idk how people live and what’s gonna happen in the future.
Really refreshing, thank you for being so down to earth and honest about this. It's really frustrating, especially because teachers give so much to their communities and really care about their families. I hope things get better, so many people deserve more.
But they didn’t even give him an answer. They can rock the boomer Ramsey boat. They just want him to “save” until he’s 60 when he has enough for a down payment on a 15-year mortgage (which most lenders won’t even calculate for you these days).
@@youtubekeepscensoringme3357You didn’t listen. He works several side jobs also and it all adds up to 60k. He’s probably only making like 40-50k as a teacher.
The 15 year fixed mortgage plan realistically only works for high income people. The guy has a good income. But keeping to these unrealistic rules, he is simply going to get himself outcompeted by everyone else doing 30 year fixed mortgages. Using Dave's calculator you need to net 13K a month the buy the average priced home of around 412K. Meanwhile the average person here nets like 2.5k per month lol. So houses are just for surgeons and ceo's with his advice.
My niece and her husband got wealthy in real estate by buying multiple properties for little or no money down in a resort town and renting them out as Air B & Bs. They’ve sold a couple of them at great profit. They are both in education.
@@Dan16673 They just made over 700K profit on the two properties they recently sold. They got really lucky because they are in a beach/ golf area and they bought the townhouse and condo over 10 years ago at a low interest rate. That profit is from the sale of the homes, it doesn’t include all the Air B & B money they made from them.
There no correlation between either of the things you mentioned. There are still buyers for the “overpriced” homes out there. Supply and demand. What the average person can and can’t afford is moot. There are enough above average buyers to support the market.
@@amireallythatgrumpy6508yes and if no one can afford a home then we’re failing as a society and prices have to be addressed by our elected officials. It’s that simple
I bought my home (950+sq) for 85k in 2020. I'm also a teacher and made probably 45k at the time. It definitely needed some updating/remodeling but nothing major. I live in rural Arkansas though. You can buy homes that inexpensive. However, you will need to sacrifice the liberties that a city gives you
In 1996, I made $35,000 per year and begged a bank to give me a loan to buy a fixer-upper house in a good area. The bank didn't want to loan me the money but eventually they did only because I had good credit. It took me years to fix it up to my liking. Paid the house off three years ago. I always thought if I can do it anyone can do it.❤
My buddy and his girl both earn 75k a year. They have 80k saved for a house. There's absolutely nothing in our area of NJ that they can buy. Hell, I couldn't even afford to buy my own house right now. Hopefully this situation will change.
I'm not sure where they live, but they might qualify for. Habitat for Humanity home. Our local affiliate is the only builder putting out homes under $170k and less
a 300k home will cost $2400+ per month depending on utilities and taxes. And thats on a 30 year. So yes, a "normal" home is out of the question for affordability for someone making 60k. The only way to buy a house the Dave way on a 15yr, he would have to find a house that is like 150k. Literally shacks cost more than that today. Maybe time to find a new job...
He's going to quit - has too. And we are all the worse when we lose someone like him, doing the actual work of advancing our civilization unable to enjoy of its surpluses, than some financier or hedge fund manager exploting massive tax loop holes who adds nothing to the productive economy. And then we attack them, too, everyday, instead of paying them more. Nearly all my family who were in eduction have or are planning on leaving soon.
If possible move back in with parents and save. It’s a hard pill to swallow for some but it would stabilize him and many others. If more people did this (not saying you don’t contribute to the house bills) they’d be in way better shape to save for a home or starting a business
You’re right. I’m a teacher and moved home with my parents from age 26-28 and I paid off my debt and saved $25,000 to kickstart a home down payment fund. I understand that’s not a possible option for everyone though.
@@carlaritchie331 People looking for housing don't even always have the money for a cheap place. I used to live with 3 roommates who together over years averaged less than $100 per person per month!!!! People who have the least money also tend in my experience to have to most need!!!!!!!!!!!!!!!
Similar situation here. I make around 50k and a dilapidated hole in the wall that needs extensive work starts at 225K. Then factor in todays interest rates it’s ridiculous. Not to mention I’m completely debt free and still can’t buy a house. That’s the whole reason I followed the baby steps 😢.
Bought my house with a usda loan in 2013 a month before i turned 23 made 12$ an hour a a local factory 68000$ its my forever home no intention of moving 3% interest my area in southeast ks average house is around 75000 so glad i chose to commit early in life to a long term plan
Yes, I'm convinced that getting in when you are young rather than renting for years is smart. A 30 year mortgage that will be paid off well before retirement age is a great investment.
Median home price in Knoxville right now is 335k and households with 75k income can only afford 12.5 percent of homes so I feel this guy’s situation it almost seems hopeless
And many of those homes are being gobbled up by cash-buyer investors. So frustrating to see an affordable house only to see it back on the market as a rental a few months later
I feel a lot of sympathy for those who are currently looking to buy their first home but missed the glory years when homes were more reasonably affordable during the Trump administration. Maybe Dave's advice suggesting to wait and save during the late 2010s for a bigger down payment on a home in the 2020s wasn't so good after all.
I feel this, our area we were just start looking at homes and prices jumped up so high we now can't touch anything unless you pay like 340,000. when just about a year ago homes were about 240,000. This market is to crazy.
I'm sorry but, with this particular caller, 95% of your replies consisted of platitudes, rather than a detailed plan of how to deal with the miserable situation this gentleman is in. AND, one of the ACTUAL pieces of advice? "Leave your current profession as a teacher." Come on.
@@StanleyCullerEsq. yes. Im in europe and keep reading that 50-60 k is very low pay in the US. The caller is a teacher and apparently cannot afford sh*t even with side jobs. So Im curious what do people do to earn 80-90-100k ? Not everyone is in IT I suppose.
@@binks3371 Well, everything you've heard about 50-60k now being chump change in the U.S. is, sadly, mostly, true. I'm retired, now, but I did a decade long stretch managing and independent music shop, followed by an even longer stretch working production in a factory that produced auto parts. All the best to you!
Me and my wife make 140k and can't even find a house to be able to buy in miami, we get outbid every time by other offers and houses are already 450k average. The 15 year mortgage is not doable here. What we have is 10%down of that and can't still find a home. It's really frustrating 😔
In 2020, 1600sqft, 4bd/2bth, on 0.33 acre city lot = ~$80K. USDA, 103% loan (3% back at closing), $0 down. Downside, 2-hour drive to a City of 50K, in NM
I totally feel for this guy. I'm 31 and am fortunate to have owned 3 homes and all were purchased before this insanity started. I purchased my first home in 2013 for $126,000. It was brand new (built that year) and was on a half acre wooded lot. I paid less than $800/mo for that mortgage (taxes and fees included). I sold that home last year for $280,000, which, at today's rates, would 3x the mortgage payment I had. Similarly, my second home, I also bought brand new for $260,000 in 2015. My mortgage payment was less than $1,500/month on that home. I ended up selling that home, also last year, for $450,000, which, at today's rates, would 2.5x the payment I was used to. I am fortunate to have purchased my current home for $225,000 back in 2018. Rates weren't great that year, but we refinanced at 2% when rates hit rock bottom in 2021. If I were to sell this house now, for it's market value of $400,000, the buyer would be paying 2.5x what I'm currently paying. I've always bought in middle class areas, but now the average home price in my area is over $400K. That, combined with 6-7% interest rates, makes it damn near impossible for someone making that kind of money to even think about buying a home in my area now.
The problem is that Ramsey advocates for real estate investing. And people like us can't afford a house because the investors are driving the price into the stratosphere.
5:31 I did this... went massively in debt at the encouragement of family members. I couldn't make it at my first real job of an Air Traffic Controller (one of the most stressful hardest jobs you'll find) and I have struggled ever since.
Yea the caller is right. As a teacher he literally can not afford a house in Knoxville. And no they are not big on town houses. They do a lot of these small 2br houses. But those prices are going up and up. Get a new career is about his only option.
Just checked Zillow and saw a bunch of 2 bed 2 bath townhouses for $250k. That should be doable for a $60k income even with current rates. But yea, looking at the market it’s slim pickings for that range. Gotta start somewhere though if you don’t want to leave the area
@@mightymouse9001 Not according to math. That will be more than 50% of someones takehome pay at a 5% down for FHA. And that is only assuming there is literally no other debt and an underwriter will write that loan.
@@damonaniton not sure what numbers you’re doing, but using an estimated 6.3% from navy federal 30 year mortgage 5% down no PMI conventional, $3125 yearly taxes, $875 home insurance. I’m getting a $1803 which is 36% of gross. While not ideal, is doable if you want to own where you live. Could always take a second job for a year or 2 and then recast the mortgage to keep the rate, but adjust the payment to below 30%
@@mightymouse9001 paycheck city and a mortgage calculator. someone making 60k is taking home 960 a week which is 3840 a month. ASSuming now insurance or 401k deductions. Assuming a 5% down payment at a rate of 6.5% and letting the calculator assume for insurance taxes and PMI we are talking 2k a month on the mortgage. So that is 52% of take home going to the mortgage. Not even the full monthly cost of housing. Will a bank qualify them. More than likely. Can they afford that. Absolutely not. And this guy quoted 60k with already working 3 jobs.
I don’t like how John projects his psychobabble on the caller. Inflation and high interest rates are a real issue brought on by the corrupt regime that has highjacked this country.
60K is the average American HOUSEHOLD income. And this show with a bunch of “finance gurus” has no better answer then get a better job or drive further. If teachers, public workers and other essential members of our society can’t afford housing where they live then something has to change. And that has to be subsidized housjng for those that can afford it. Excited about Airbnb beginning to fail and for people with tons of rental properties to see the appropriate losses on their investments.
It is refreshing for them to admit that even a 60K salary can't afford a home. I think this show needs more of these normal circumstances.
Not true. I made less than that and still made it happen. Bunch of whiners
@@mitchdogstudios how long ago? Things changed a lot in the last 3 years.
@@mitchdogstudios yeah tell us all about your deteriorating single-wide
@@mitchdogstudioshis person probably has settled with eating dry bologna sandwiches and is happy with being a miserable unlikable smarty pants.
@@Lady.Luck.think the issue is people want to start out with 4 bedroom house instead of what they can afford. In my area of Jacksonville you can still buy 1bed1bath condos for $130k -$160k.
Yes I know I know, people 40 years ago paid a quarter of that for a full house.
Well times have changed, if you’re a single adult with no kids like the caller, save the money and get the 1bed1bath condo first while you then save for the house.
I was making $46k at the time of my purchase in 2021.
2 years later I’m making $80k and saving a ton for our future home while still building equity. Because we don’t NEED the extra space, we’re saving to just pay the house off cash which at our rate of savings should be 5-6 years
Depending on this callers area, he may be looking for instant gratification of a single family home instead of upgrading slowly.
Thank goodness you brought this up! Truly, investing has changed my perspective on how one can succeed in life; working multiple jobs isn't the optimal way to attain financial freedom and unfortunately, we discover this later in life. Currently earn as much as 10 grand weekly and this has improved my financial life. Great piece!
Wow, congratulations on your impressive investment success! Your discipline and focus on delayed gratification is truly inspiring. I'm curious, what are some of the key factors that you consider when making investment decisions? Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
Do you mind sharing info on the adviser who
assisted you? I'm 39 now and would love to
grow my portfolio and plan my retirement
She's OLIVIA SULLIVAN FINANCIALS
I'm definitely gonna check her out. Do yo have any idea if she manages family fund?
she's a known advisor. I actually did look her up curiously and went through her credentials on her webbsite... Top-notch! I wrote her an email, hopefully she's accepting new intakes.
I genuinely mean it when I express my stress and concern regarding the market crash and high inflation, particularly in relation to my retirement. I have been experiencing losses for quite some time, and while some may argue that crises can present opportunities, I am feeling overwhelmed. However, I understand that investing is a long-term endeavor, and it is crucial to maintain focus on the bigger picture and the long run...
The best course of action if you lack market knowledge is to ask a consultant or investing coach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my portfolio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment...
how do I get in touch with this consultant that assist??
STEPHANIE KOPP MEEKS, that's whom i work with look her up and thank me later.....
Thanks for the info . Found her website and it really impressive
This is why Dave's math on buying a house is laughable. 60k after taxes is about 45k. Dave doesn't want you to spend more than 25% of your take home pay, which leaves you with about $937 a month. Then, he says to do a 15 year fixed mortgage. At the current interest rates of 6.5%, this means the average American family can only afford a home that costs 105K, according to Dave. 😂
Right and with the cost of apartments, it doesn't make sense for people to keep renting because they can't afford his math. A 30 year fixed at 30% of your gross income totally changes the options for a person on a $60k income.
Lol Fr
Yeah that planned worked maybe a decade ago but times changed lol. Does the Ramsey team not realize their own math ain’t mathing? It’s laughable
That's doable on a double income household but if one loses a job or has to stay at home with an infant you're FOOKED.
The average family makes more than 60k
I'm 28, but I bought a home at 22 for $125,000. Put down $8,000. Refinanced in 2020 at 3.25%. Mortgage is $700. In todays numbers though I'd be paying much more. Got super lucky and I feel so bad for people in today's market
I pay 600 a month in property taxes. 3 bedroom 1 bathroom 1500sf ranch style home. You can't buy a trailer that burned to the ground for 125k in NJ. I'm not exaggerating either.
I bought mine at 24. I’m 31, and ready to relocate…I am not fit to buy a house right now in this economy. It’s very sad. Home pricing increasing, but pay is not.
Jeezus... I'm in the DC metro area, and anything decent is $500k+
I pay 700 USD/month in property tax--on a small, 80-year-old Cape Cod in Chicagoland, IL. As a homeowner: in addition to the ongoing, regular expense of the (1) property tax, (2) utilities, (3) insurance and (4) maintenance, I can't imagine having a mortgage right now.
Do you live in Iowa?
Lets be honest, we all feel this guy, I don't know how many odds and ends he is working to make $60k. But lets just start with this. Most people cannot afford to live where they work. They cannot make enough where they can afford, do you follow me? Moving out far enough to afford something means moving too far from your job.
What the folks at Ramsey need to start doing is giving these people some new advice. My suggestion is to retire the old "Just look in an area that's more affordable" this is very insulting; its like asking someone to find a part of hell that is cool because you know they are stuck there.
The caller is 30 years old. Who knows maybe his life circumstances change? Maybe he gets married at 35 and his wife is also a teacher making $60k? That's $120k between the both of them. At that household income, they should be able to easily afford a $300k house in Knoxville, TN (assuming they put 20% down). This also doesn't consider that his income should have increased somewhat over the next 5 years.
If we’re honest, we also need to admit this problem has only cropped up in the past couple of years. I know Knoxville well, in 2020 there were lots of homes you could buy for 200K or less at 3% for 30 years. He could have easily afforded a 3 bedroom home in a typical starter suburb and his mortgage would have been under $1000/mo. Rachel is wrong about the areas she’s suggesting (like Powell, a typical suburban community), those homes that used to be in the 150 to 225 price range don’t sell for anything less than 250. Also, by the way, the Knoxville is situated, a lot of the homes in West Knoxville run along the river, which is considered relatively nice property because of all the lakes and water things to do here in Knoxville. Into the east, you run into the great Smoky Mountain national Park. Beautiful scenery. There truly is no way for this guy to be able to drive out to a location for a decent starter home for 200k. They existed in spades just 3 years ago, but not today. I don’t know how to fix the problem except pray that interest rates go down and inflation goes down. That’s the only way people are gonna start putting their homes on the market and increase supply.
In general, I agree with Ramseys advice - especially for people that haven’t been around the block financially, and don’t know what they’re doing. It’s not bad advice at all. But I do think that a lot of people on this thread, have a real point that the idea somebody making an average salary can afford a home in today’s market, at today’s interest rates, is flying out the window.
For real. In the places where homes are $200k there are only fast food jobs. Especially if you work in a field that can’t be remote.
Yep. If you move somewhere where the homes are like 40% cheaper, you're probably gonna take a pay cut pretty close to that. So then it isn't even worth moving.
@@musicman1eanda honestly, I’m not even sure if that’s true. For example, Knoxville had never been considered a town with high home prices. It’s a nice small city, it’s right next to the great smoky mountain national park, it sits by the Tennessee river, which has a lot of dams that have created lots of man-made lakes and reservoirs for boating, fishing, water, skiing, etc.…, And has the University of Tennessee right downtown. You struggle to find a place to live (realistically) that’s turnkey ready for family of four in what I would call s Typical Suburban setting for under $300,000. Five years ago, that wasn’t the case you could’ve had a home for a third less, if not more. I actually looked up a few things after reading this thread to find out why this is going on, and was happening is something called the “stuck supply” problem. People aren’t selling their homes because interest rates have jumped so high, so fast, that it doesn’t make sense for someone who would like to move, but doesn’t have to, to voluntarily pay more money to the bank. I think things will get better lOnce interest rates come down (if they ever do), or we adjust to a new normal, where interest rates are simply excepted to be at six and 7% in the future. The stuck supply problem we’ll fix itself if that’s the case, because Time marches on, and circumstances change for everyone.
Glad to see these hosts finally taking on calls from real people actually experiencing reality.
That's not reality, it's only happening in America. America is not in the real world.
You mean like the millionaires that call to humble brag to ask whether or not they should be allowed to buy a used 20k car? 🙈🙉🙊
@@YoPhocFays that’s the exact point I was making, your comment is confusing
@@baileymaloney1961 if you didn't get the drift, I was agreeing with you
@@YoPhocFays ohh 10-4 lol 😂
I bet he feels that way even looking at 30 year fixed . Wait till he finds out they want him to do a 15 year .
With 20% down, which isn’t a problem saying but on his salary not doable.
Yeah, this is where Ramsey will say “go live in a cheaper area” which there are none nowadays lol.
@@MarksTournamentsHe might be able to make it happen in 5 years for a 15 year if he saves 50% of his $60k income and puts 50% down on a 300k house depending on the interest rates at that time.
@@LemonMeIony'all just be making up these random numbers like it's possible.
@@Tunechi65 Have you ever used a mortgage calculator before? Try plugging those numbers in at the current 15 year interest rate and see what the monthly payment is. Will be higher than the recommended 28%, but might be doable.
This is extremely validating. I live in Texas and make what should be considered a decent salary (and maybe in a small town in the Midwest, it would be). Yet I could never afford a house on this salary. Due to the cost of living, it's hard to save very much.
You are not alone. To keep up with rising cost we are beginning to see the equity of our home for what it truly is. Its becoming hard for us seniors not to ask the obvious question: Should we cash in, invest the money, and rent?
@@AnatolyIvor I know times are uncertain. I and my spouse are working on a ballpark estimate of $5M for retirement, and I have a good 6-figures each loaded up for this, you mean we can't do it in 5 years at most? I'm nearly 55.
@@marcoerrett Very true, people downplay planners role, until burnt by their mistakes. I remember just after my layoff early 2020 amidst covid outbreak, I needed to stay afloat, hence researched for license-fiduciary advsors. Thankfully, I came across someone of practical knowledge, and decades of experience, I liquidated 200k of 325k from my 401(k) it has yielded nearly 1 m after subsequent investments so far.
@@PurvisTwiggs can you refer me please
LOREN LENA WALKER is the CFP responsible for my portfolio success, she's in her 60s 0r 70s just confirm yourself.
The fact that a $50-$60,000 salary isn’t enough to buy a home says a lot about the COUNTRY has FAILED. NOT THE PERSON.
Keep blaming everyone else you'll surely get a house then
I bought a house IN FULL, cash, after saving up on my $31k income for 4 years....sounds to me like you have a skill issue if you can't "afford" a house with 2 times my income...
@@noxproductions6851when did you make that purchase, 2009?
@@noxproductions6851 Good for you!
@@gnes04 Keep living in the baby boomer days thinking its easy to get a home like it was prior to them screwing up the economy in 2008.
He is smoked as most of us are. We can pay debt but getting into a house seems impossible.
The math is just ridiculous on their plan and they know it. 60K is about $4k a month in take home pay. 25% of $4k is $1,000 for a mortgage. That means, by their standards, he could only buy a $120,000 home ASSUMING he puts down $36,000. That would be $1,000 per month. Find me a Zillow listing for a $120,000 home that is decent within 100 miles of where he is living.
That’s the cost of a parking space
So he can't afford to live there.
120,000 can get you a decent house..... in a third world country.
I put $16,000 down on my $150,000 home and pay $820 a month. I got it a month before interest rates went up. Does interest rates make THAT big of a difference?
@@mutthead1444yes they do I’m in Australia and my mortgage nearly doubled
The housing prices are going up faster than any working person could save. I was really hopeful of my investments this year, but all my plans have been disoriented. I've been studying the housing market and I realized some investors made millions from the recent recession and I was wondering if such success rate could be achieved in this present market.
Yes, If you go long against the market you'd make such success.
I feel exceptionally lucky I started investing in my early 40s and compounded my income to create more cash flow. I opted for a more aggressive approach and so far I've made over $350k in raw profits from just q1 of 2023 from mainly blue chip stocks, S&P500, coins and high yield dividend funds. ever grateful to Trisha Jean Webb my F.A... House and cars all paid off and no other debt.
@@RandyPelletier Did a quick web search, she has a pretty decent bio, I wrote her and I'm waiting on her reply.
M of
Dallas is where its at. In 3 years when I graduate from school debt free I will purchase home there. Hopefully they continue to stay at half a mil
This is financial advice and I never give financial advice: DONT LEAVE DURING THE BEAR. If you don’t want to invest…learn. If you don’t want to learn…build. If you don’t want to build observe. DO SOMETHING…other than leave. There is so much opportunity here. Take advantage!
Just because there are opportunities in the market doesn’t mean you should go in blindly. To understand the potential factors that contribute to your financial growth, I'll advise you to seek the help of a professional.
@@susannnico Professionals just take money from you. Yu don't need anything from them you can't find online or already know. Just buy a few popular index funds and ETFs like VOO and VTI and you are good for. The professionals nickel and dime you to death and end up costing you big time over time. They might even buy into funds that give them kickbacks so not even in your best interests. Only you care about yourself so you have to do it. Once you set it you can just forget it and let grow and auto invest however you set it up to auto invest and leave it hands off. They do no better and actually do worst than those that just stick to the advice I just gave. That advice made a little more sense like in the 80s and 90s but not today where you can everything yourself and do it so easily.
This is why I haven't sold my crypto during the bear market. I am learning from my mistakes.
60k is the average salary . Back in the days one with an average salary could support a family, have a house, and a car. United States is not what it used to, inequality is getting out of control
HINC-04 US Census
~$130K is the mean household income for married with children under 18.
Don't average in poverty and elderly
You can have a house car and support your family. Just not an exspensive home and car
Thats why I compare America to the Dallas Cowboys. Everyone keeps telling me how great we are, but when it's time to prove our greatness, we fall short time after time.
@@aolvaar8792 "household income" means 2 income earners.
Exactly. People like the bidens need to pay their fair share.
The house prices increased by 50-100% over the 2 year covid period. It's impossible. I get a 3% raise every year, not 50%....
A dollar and some change yeah it’s a struggle out here
It’s price gouging. So discouraging.
@@agees924 Boomers are living off fat SS and pensions that the current working class pays for. We will never get these benefits and yet they are trying to gut our retirement and raise our taxes to pay for their benefits so they can continue to stay in homes we will never afford. The political divide is not left vs right. It is old vs young and young people need to stand together and cut SS taxes and benefits so the economy can normalize.
Both can be true:
Housing has always been a long term financial goal, and often requires sacrifice to achieve it.
First time buyers between 22-35 years old who failed to buy pre Covid are getting absolutely screwed. More than any other generation.
It will take longer for wages to catch up but if we stop the massive printing of money, keep interest rates high for long enough to stop inflation, stop the rampant immigration, the prices will likely normalize relative to income. Investors won't buy everything, too much risk.
People dont understand that the prices of things are never going back down. This inflation is deeper than we think. Those buying groceries are well aware that the real inflation is much over 10%. The increments dont match our income, yet certain investors still earn over $365,000 in stocks and assets. Wish I could accomplish that.
Very possible! especially at this moment. Profits can be made in many different ways, but such intricate transactions should only be handled by seasoned market professionals.
Some persons think inves'tin is all about buying stocks; I think going into the stock market without a good experience is a big risk, that's why I'm lucky to have seen someone like mr Brian.
Finding yourself a good broker is as same as finding a good wife, which you go less stress, you get just enough with so much little effort at things
Brian demonstrates an excellent understanding of market trends, making well informed decisions that leads to consistent profit
I'm surprised that you just mentioned and recommend Mr Brian Nelson. I met him at a conference in 2018 and we have been working together ever since.
I live in Tampa. I'm a teacher and I make the exact same income. Had I not purchased my 100k, 840 sqft condo in 2020 early in the pandemic, there is no way I could afford it today at nearly 200k. My old apartment rent went from 1000 to 1,900 in the three years I've owned my condo .... It's only a mile down the street.
The fact is that teachers, cannot buy a house on 60k as the economy currently stands. And I don't see it changing soon. And it's a darn shame because they want teachers to be highly educated. And who's going to pay those student loans?
The same people that pay your salary will pay your student loans. That is the answer.
Tampa st Pete is so incredibly expensive. A one room with a TINY bathroom is 1000 a month.
I wouldn't buy a house if it does not have at least half an acre of land minimal. I would never buy a condo---I want a place to thrive not live. I'm fine with renting otherwise. I want to be able to do whatever I want on my property as long as it is approved by city hall.
This is a shameful example that a young person that teaches our children cannot get a home for themselves.
Buying a house has always been difficult in every single generation. My grandparents bought a house in Mexico in 1920's for 400 pesos it was a terrible sacrifice. My parents came to the US and bought a house in the 1980's very difficult I bought a house in the 2010's it was a sacrifice and I am a teacher as well. Buying a house anywhere is a sacrifice and it will never be easy.
But all you have described have never had to buy half a million to million dollar home. The newer generation knows better than any about sacrifice. I will have to sacrifice having a family and social life for the next 5 years to purchase a home. Not fun-
Edit: more like next 10 yrs because licensing for healthcare providers is crazy just to earn 40k more annually
A house has never been an easy purchase. I had to save all in my 20s to have a good amount for down and misc house related stuff in my 30s. Some seem to think just bc you have a decent job, you immediately deserve a home…it’s a lot more than that.
@@SweetPotata10 sir I had to go back to school to change professions bc 80k was not enough for rent, health insurance, car insurance, food, no paid holidays, no paid vacations, no retirement match, etc. No one should have to work 5-6 days a week to live ans provide there own basic benefits which is what many employers are doing. You really do not know the struggle. Sorry let me add I started saving for a home at 21 while paying tuition. Do you see these tuition prices even at public schools? Not dorming- just class and additional fees. Its crazy. Its not about playing victim, its about being empathetic and recognizing Houston we have a major problem
@@SweetPotata10 I am a gen z and we are beyond fucked. Glorified gig workers
The caller and I are in the same situation. We both are 30 make around the same a year and are single. The housing market is definitely not friendly to us making less than 100k/ year.
Move to Texas. Houses are like 130k
@@rambosandman4088can’t pay me to live in a red state
@@rambosandman4088you wish. 350k minimum for a house here near the jobs.
@@MarksTournaments are you sure? What’s with all the CA and New York license plates in Miami traffic? They all put locals out of the market. I wish you all would go back to your gas-stove/wood-fire free states.
@@MarksTournaments Soon they’re gonna have to pay people to live in blue states 🤣
My wife just got a job at a community College in knoxville and there were over 200 applicants. I can't believe how competitive a 50k a year job is. Sures there's great benefits but thank God we have 2 incomes
That’s insane over 200 applicants for a community college jobs. Well there’s a lot of pros. Most of those are 9 month positions, but like I tell most people that I don’t get paid for those months not worked in the summer.
There is an abundance of workers in some fields but others are still is very short supply
@@gatewaysolo104 lot of 50k jobs out there currently. With both a college degree and without a college degree.
This is depressing…I’m 30 and I make the same also and I’ve been renting for the past few months, feeling like I’m such a disappointment for not being able to afford a house that I feel I deserve. But I’m starting to feel somewhat proud of myself since I’m also taking care of my 2 kids and there mom that I’m separated from while also living comfortably and not struggling with bills.
You are doing a great job. You'll get there in a time that's right for you.
You're already a hero for taking care of your kids!
How amazing! 60k is not much but what you and your wife do with it, it is what matters:)
Im 29 and feel a similar way, most of my older cousins are married and bought homes while I decided to purchase a mobile home in a cheaper part of my state. Sucks how if I literally entered the job market and graduated just a couple years earlier, I couldve bought at least a nice townhouse before the BS price runup.
Well you said your problem yourself. You’re paying for your 2 kids and their mom. The only way out is to make more money sadly unless you can convince momma bear to come back and get married and pay for the kids and mortgage payment with you. I don’t know many 1 bedroom houses lol they are made for families aka mom and dad both pay. You got it brotha put the head down and grind to make more money you can do it!
What did we think would happen by letting corporations gobble up all the residential real estate?! 25% of the homes in florida are owned by corporations. Including private investors, it's probably closer to 1 in every 3 homes being owned by an "investor". That's either going to keep prices out of reach for most people, or contribute significantly to a price correction. I feel bad for young couples today staring at a $400k "starter home".
Who is “we”…. how can US citizens have any control of any of that? Thats the government who “let” that happened.
Yeah it’s messed up how these investors have taken over. It’s happened right here in Ohio even with the bad neighborhoods. They renovate them then charge astronomical rent or purchase prices.
After people die, those homes come on the market all the time. Those are often well built, in established neighborhoods, and may simply need gradual updates to personal preferences.
Ramsay says you should get a 15 year fixed mortgage with the payment no more than 25% of take home pay. With 20% down, the median priced home in the US would mean you need to make over $250,000 a year.
Or find an affordable house.
I agree with Dave Ramsey's program, but lately it is just theoretical. I completely agree about not being in debt to the extent that it's possible. But this caller just illustrates that sometimes it just becomes a."only for the rich" situation. The best advice they can give is get a higher paying career? Discolor is dutifully, working multiple jobs, paying down his debt. Maybe this caller has another three years to pay down all of the debt. Then another five years of putting life on hold to save for a house. Pretty soon he's going to be pushing 50 with nothing behind them but backbreaking work trying to accumulate the bare minimum on the tiniest, most rundown piece of real estate on the market.
Isn't the median priced home ~400k? I know there are plenty of places in the States where that is low, but there are plenty more where you can easily find a condo or smaller home for less than that. My family earns nowhere close to $250k, but we would be able to afford a home in this market. Thing is, similar to how people say when you sell (stocks) during a downturn, you lock in your losses. I know we would be overpaying for anything purchased and being upside down on a mortgage is scarier than "missing out" on owning mortgage now. We are being patient to either wait for things to improve or a place to show up that is worth the potential risk.
This is such an important video. It's so frustrating to constantly feel like you need to make more and do more, when you already have a good job. But it's not enough to keep up with the cost of living. Especially when you're single. You shouldn't need part-time jobs and side hustles which lead to burnout and no life.
And boomers like Ramsey will tell you to just get a 3rd job... lmao
Single? The cost of beer is that expensive? Try feeding a wife and children!!!!
@@dianabenavides2913we have a whole separate problem..I got 3 kids I need to train to live in this mess.. it's unrealistic to think my daughter needs to be making the same or more than me at 80k to afford a rent
@@crzycolchris personally i see two strategies play on the defense or offense like in soccer you play defense by always being back and offecnse always attacking. In finamce playing defense means you gaurd and budget every dollar and playing offense you work harder and make more money. There are people that know how to live on way less than that and still save money each month.
@@dianabenavides2913 I automatically put 1/4 of my paycheck into savings and live on the rest.
We bought our first home in 2017. It has almost double from what we paid. I couldn’t imagine trying to buy a house now, even though I’ve had a significant pay bump since that time. Imagine how bad things are going to be in 10-20 years.
But the pay increases will go up as well it will balance itself
@@dianabenavides2913 sure they will just because they have all along
@@dianabenavides2913that isn't how it works.
The market will decrease, it has to.
@@Ididntwantayoutubehandlit doesn’t have to.. especially when we’re roughly 4M homes behind on demand. Once interest rates start getting cut again it’s only going to force price up higher
It’s just so hard to swallow her advice knowing she lives in a million dollar mansion.
Exactly lol
Keep listening to people who fail and whine about it and see how far you get.
When she said “look into a townhome” and then said “owning a piece of real estate is a great option to have so I would continue to keep searching”…… Now Rachel….
@@kleindropper Does her dad own the company? I have a feeling she was given the job
Her advice is the same as Dave’s, who built his fortune from the ground up. He lives in a multimillion dollar home too. Why shouldn’t we take financial advice from people who are winning with money? Nepo baby of sorts, sure, but she’s here working, earning her keep, and has been for years. She’s still a credible source.
Her guidlines with the current housing market just isnt feasible for most people.
For example, if you bought a $300,000 house with a 20% downpayment (60k) your total monthly amount for a 15 year fixed loan at current interest rates (6.5% currently) would be $2,500 without utilities. So in order to fall with in the 25% guidlines for take home pay, you would need to net in a little over $10,000 a month to make it work which would be $120,000 NET.
I don't know about everyone else but I don't know many people that bring in that kind of money per month. It just isnt practical.
And that’s if you are lucky to live in an area where they still have 300k houses. In Miami, FL, you can buy an old 2/1 condo apartment at best with that money. And then add HOA fees.
Exactly. $60k per year is about $4k take home per month which gets him a $1,000 monthly payment.. So, for a 15-year fixed rate mortgage at current rates, that’s gonna be about a $115,000 home.
Yeah at first, $300k doesn't sound like much. My place was $335k, and I put 20% down for a 15 yr. My mortgage is $2k/month, but that's because I got an APR of 2.4%. So an APR of 6.5%-7% really fucks you over.
It's always interesting to see others situations and perspective. I guess for me and my friends/colleagues, we all earn about similar so household income of about 250k-350k is the norm. Always have to remind myself that I'm in my own bubble with similar people so not everyone earns what we do. And once upon a time we were earning far less as well to get to where we are today so mobility for higher income is high in America for sure and living the American dream is real.
But earning 60k a year for a 300k house is pretty insane to do. It is doable if you have a big sizable down payment but with high interest rates it will be near impossible. You will have to be house poor. When my wife and I bought our first home it was around 290k in 2016 we had a household income of only about 150k at the time and took a loan of 230k. It was still tough with this income where we budgeted a lot and lived under our means, I can't imagine earning 60k a year. After 7 years we have our 2nd house and since our focus was to pay off our mortgage we are now mortgage free on top of earning a lot more income. Feel very blessed.
@@eplugplay8409 what do you do
For a living?
Finally, you are interviewing REAL normal everyday people. Not those that are making 100k and is having a problem whether to buy a 5k used car or not.
You mean one of these people actually believes it's possible to improve their situation? Normal everyday people do NOT CALL because they think their situation is helpless and hopeless.
I think it would be helpful to do another video like this- but with Dave & Team putting some numbers together on various home prices & down payments and such for a 15 year mortgage etc.. - so people could be helped by looking at what they need to work for as a goal… a roadmap. ❤️
It still doesn't change the fact that the home prices are unaffordable. They admitted it in the video...
The reality is that we need a fix for the cost of housing. What this fix is, I do not know. But the reality is that the majority of people DO NOT make much more annually than the man in the video. The average salary in the U.S. currently is right around $60k. That means the vast majority of people living in this country right now CANNOT afford to buy a home on their current salaries. It doesn't matter which way you put the pen to the paper. Mathematically it is NOT possible to follow Dave's philosophy and own a home in the current housing market on a $60k annual salary. Therefore, we need a fix for this current housing crisis. It's not just a personal finance issue. It's an issue with the market itself, supply, demand, and the overvaluation and inflation of the prices of said homes that are on the market. Ultimately, as much as I hate and loathe the federal government, some kind of action and regulation is going to have to take place to fix this issue.
The cost of homes isn’t a problem that can be “solved”. The market dictates the prices of homes. What an individual can influence is their household finances.
If it’s really important to someone to own a home, but their income cannot get them to the home they dream of, regardless of the market, then somethings gotta give.
You are in control of your income. You are in control of your budget. You can control how much down payment you save up which in turn increases your buying power and affordability.
If you’re frustrated by this paradox, don’t let it get you down. Tighten that budget, drive up that income and save up the biggest down payment you can. Then start looking at houses based wholly on what your personal circumstances can afford - not by zip code or what the bank say you can borrow.
@@Holdeenio amen :)
@@JoshuaParnell-k2yit’s possible on a $60k salary but not easy. It’s all about the down payment. Let’s say you wanted to buy a home in the $250k - $300k range. Could you take 3 years and save up like $125k for a down payment? What if you worked an extra job on top of your salaried job for those 3 years? Could you save $3500 a month for 3 years? Or maybe stretch it to 4 or 5 years to come up with the down payment. It’s possible. Not fun, but possible. The reality is that a single person probably needs to make $100k or more to more easily buy a house. That’s just the math today.
This caller represents so many Americans today and it’s saddening. Best of luck to him!! I was fortunate enough to find a couple who needed to downsize and had contingencies -which actually worked in my favor as well. In 2021 I went into contract with them for my first property, as a single parent without even having all that was needed for closing cost. I accepted the contingencies as it gave me extra time to work like a dog to come up with closing costs and gave them time to find a new place to live. I have no doubt in my mind this was all by the grace of God❤ today I live with my girls in my condo peacefully and now focus on paying off all my debt. Had I only focused on paying off debt first, I would’ve lost this amazing opportunity. My best wishes to the caller and hope he can find a gap to buy the home he so much desires 🙏
Our family makes 90k a year and we feel like this. We're in ohio where homes are less than the area he is in, and we feel the same way. Inventory is so low that everything is going for 15-30k over asking. We decided to pause on looking for a bit to save accordingly. We've been watching the market for a bit and it's frustrating when you see that 6-9 months ago this wasn't happening.
Wait awhile. My sister's a realtor and she says prices will stabilize
That’s $90k with one or two incomes?
why not buy a piece of land and build your own home ?
Where in Ohio? I bought last year for $30,000.
@@binks3371 do all of that on $90k?
Rachel is saying a lot of nothing. No actual advice. Just a lot of platitudes.
She can't do anything else really. Following Dave's plan strictly means that only high income people can buy homes. At the end of the day it's up to the people listening to decide if they want to follow the plan and be priced out of the market. Or if they want to do a normal 30 year fixed like most people do.
She tried to say you don't make enough without being mean. I like Dave's approach better, just say it directly.
I think Rachel said a lot. Just reality and not what people want to hear.
A bit long winded but they were being nice.
I know the feeling. In 2019, I was working a minimum wage job and doing a lot of volunteer work because that's what I felt "called" to do. If I would have been working a real job in 2015-2019, I would have a house right now. We finally started working multiple jobs in 2020 to save for a house, but the prices went up faster than we could save.
Now, it feels like we will never afford a house.
Find a foreclosure and flip it.
Nothing stays the same forever
@@alinatamashevich3354the average person can’t. Foreclosures can’t be purchased on a typical mortgage in almost every circumstance because a bank won’t touch it and most people don’t have that cash.
@@c2s2942I am average and have done 2! My first one was a regular 30 year fixed rate mortgage, it was a HUD repo. The lender will be happy to have the property sold, so they are looking to unload it. Banks deal in MONEY, owning real estate is not what they do.
You CAN afford to buy a house… IF you can find one for $150,000 which is extremely rare and rural areas
I moved to a small town and bought a small plot of land and put utilities on it for $15k. Then I financed a 16x75 singlewide for $106k. I make $60k/year and my monthly mortgage is $1.2k/month. While my takehome is $3.8k/month. I live comfortably and know no matter what I own a home by the age of 60 even if I do nothing to pay it off early.
@@budc.8172 That singlewide was a waste of money though... They always go down in value, a lot. If you plan to live in it for the rest of your life you'll be okay though.
So following the Ramsey principle of payment shouldn’t be more than 25% of your take home pay and also a 15 year mortgage with 20% down that would mean they could afford 100,000$ for a home.
@@TheFlyingZulu 50 years ago, a singlewide on an acre overlooking the ocean in CA = $25K
Now those lots (which still retain their M1 zoning) = +$1MM
@@aolvaar8792 That's 50 years ago and in Cali on the coast... That's a very specific market. The lot the trailer is sitting on is what is worth 1 mil+, not the trailer.
Ramsey Team - please do more shows on this topic .. thanks .. 😊
It really made no sense to me when he said ''It doesn't matter whether I'm right or wrong, whether the market goes up and down. I'm good regardless''. People are really losing a sh*t ton of money out here. I personally have been buying stocks since the beginning of the year and yet nothing's changed, but I've been reading articles of people still in the same market pulling off over 350k in just a couple months. Its tough out here!
Sometimes, the strategies to stay on constant green in a downturn markets are quite rigorous for the regular-Joe. Matter of fact, they are most successfully carried out by experts who have had a great deal of skillset/knowledge of the market. Maybe you should hire one.
@@freedomisEexpensive-08 Agreed! I first contacted a Financial Analyst because these days, it's easy to buy into trending stocks, but the task is knowing when to sell or keep. That's where my manager comes in, to help me with entry and exit points in the industries I'm engaged in. I’m currently 60% up in profits just in 5months with my initial capital of $160k
@@MrGravity304 Please can you leave the info on how to reach your investment advisor here? I’m in dire need for one.
@@NotyourBusiness-urto6 Sure. NICOLE DESIREE SIMON, a well-known person in her field, is my advisor. I got to know her through my wife. It's my wife that has her number, but you could further investigate her credentials and contact her yourself.
@@MrGravity304 Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
This was a crappy call. Not the caller but the reality of the situation. Everyday people with average incomes cannot afford to buy a house
The advise is crappy as well. Something I just saw. Our national debt hit 32 trillion June 16th less then two weeks later we added 122 billion. This is not sustainable.
@@winterhavenfarmlife agreed... the numbers are so big they feel made up. Once the student lan payments resume, the American financial crisis is only going to get worse
The problem is the hosts and the caller, they're not blaming government
So, for all intents and purposes, they're saying that teachers cannot afford to purchase a home in the home state of RAMSEY CORP.
Shoot only CEOs, Doctors, Enterprenuers, and executives can purchase homes in 1'/2 the country today. This is insanity
Bingo!!!!
Exactly. Or firefighters, police officers, EMT paramedics, Mail carriers, etc. Its the American Dream… for some
Not surprising because Tennessee barely pays its teachers because they're seen as leeching off the government.
I'm a single woman in MN, I make $24.73/hr plus $1.25 because I work overnights
The cheapest rent in 30 miles is where I live now, 1bd 1ba $1,200/month. It's crazy, I pay my bills but have like $300 left over every month. It's not much room
y’all better stop thinking only red/blue, black/white, conservative/liberal. we’re all getting screwed over
Yup
In 2019 if you i followed Dave's plan and went to pay off my student loans instead of buying a house i would have paid my 40k student loans but i would have need it 120k more to buy the same house i bought in 2019. Buying a house should be the number one priority because it caps your spending and stabilize you mentally to focus on paying debt faster. No financial advisor is always right because circumstances changes but their precious opinions never do.
Well there is the math, as you mention. But I think Dave also factors in psychological, emotional and values based concerns into his business of financial advice. He doesn't make a secret of this. It is possible you'd come out higher in wealth numbers by other ways than the Ramsey style. But Dave Ramsey puts high value on not being in debt and being independent of a lender. He feels that there is a certain psychological strength and freedom that comes out of being debt-free as a way of life. And that furthermore, that sense of relief or peace that comes out of not owing anyone any money is likely to give a better mind setting to make more positive decisions.
I do think the mortgage conditions of his plan for home ownership is tight and needs a serious re-look.
Back then yes, buy as much home as you could afford. Now? buying a home is not currently a realistic investment. Rates and prices simply do not math right for that to be the case.
Wow. Did you seriously just tell a teacher they need to change jobs so they can buy a home? What a chump move. I guess we wont have any teachers anymore cause none of them can buy a home. Great advice.
What would you suggest the teacher do? Allow me to remind you he is a full time teacher and does side jobs and it only making 60k before taxes
@@ZT_313the fact you even have the nerve to ask this shows how little you care about society and raising future generations. There is more to this world then $$$. Teachers deserve to be paid a wage where they can afford basic transportation and the ability to own a normal home. Without teachers no one would learn or grow in society and our progress as a nation would collapse very quickly. There already is a teacher shortage due to lack of wages which is causing crowded classrooms and reduced learning opportunities.
The Ramsey show is in a wonderful position where they could be lobbying for wage increases for teachers and other critical jobs across the nation. They have the wealth and influence to make a difference and join the cause. Instead the Ramsey team supports the idea of {we don't need teachers, quit your job, leave all those kids out to dry, and focus on yourself. It's fine. You can't own a home with that job so just leave it to get the important stuff. That's what matters, not the impact your job has in society. Forget others and be selfish}.
Teachers should not quit their jobs. They deserve to be treated properly and paid for their efforts. The work they do is more important than any doctor or lawyer will ever accomplish and each of them deserves to be paid for it. Government and society have failed teachers, and someone with the Ramsey shows influence and money should be saying something about it instead of supporting that failure.
She cannot relate to the frustration in the market.
she nods well
Exactly. Her daddy is a multimillionaire
She couldnt buy her 10th air bnb property
She knows that area well because that's where all her investment properties are :)
@@Zoltarswim I’m sure she knows the area well but she can’t relate to someone making 60k trying to afford a house.
It's because people like dave ramsey bought all the homes in 2008 and plan to keep forever and constantly increase the rent. I don't know why you would ask advice from people who cannot relate.
I half agree and half don’t. People using real estate as an investment has made the supply of homes to buy for the average consumer go down. So yes, it has made it more expensive. But I think people go to Dave because he is an example of where they want to be financially. It’s nice to have mentors that have walked the path to success.
All of that being said-it is tiring to hear Dave tell people that owning a home has always been hard and people are just coming up with excuses… when the reality is, wages and prices of homes have never been as far apart as they are now.
That’s ridiculous. There are plenty of afford homes out there
@@christined4842
I bought my 1960 block home in 2011 for $50K
In 2022, ~$500K
It completely depends on the market. I teach school. I have a masters degree and five years of experience. Plus, I work any overtime I can get and work a second job. All of that together gives me a net pay of around 55k. My wife and I only have a small car payment-which should be paid off within the next year. But rent where I teach in Arizona is around $2500 for a basic two bedroom. We live about 30 minutes from where I work, and rent is still around $2100 a month at the cheapest-not including fees and utilities. Houses are only more. So making some kind of blanket statement is silly. I am leaving my job and leaving the state because I can’t afford to live there.
@@christined4842 Where? some small town in Iowa with 200 people 80 miles off the interstate? Can you think of a reason why that may not be feasible?
dont buy a house now. you missed the mark this time, the window is closed. Save and make sure your ready when the market goes back down.
It doesn’t go back down, this isn’t 2008.
There is a huge shortage of housing due to no building going on during Covid. Add in how Biden has allowed over 7 million illegals in on top of that sucking up all the cheaper housing and I don't see a lot of downward pressure until the entire economy collapses.
too late, i bought one a couple months ago. Mortgage/taxes/insurance/ = $2,300. Renting an apartment $2,100. Both situations I had a roommate. There aren't many good options.
Market going down lol. Half of homes are bought in cash. This is not 2008 and adjustable rate loans.
He isn't even ready to buy now.
I don’t see that they helped this man in anyway. A lot of empathy and filler talk, but no resolution. You know our current working class is fucked when not even The Ramsey Show can give you a straight answer on where to begin to finally resolving your issue.
I agree, they were too empathetic, Dave would have said get a bigger shovel 👍
@@JakeStewart1343 Dave would have kept it real. And even if that means telling you that at your current pace, you were not gonna make it.
Get a family...
@@JakeStewart1343that is true but doesn't solve the problem. The fact millenials and Genz are having a harder time affording a home then past generations did is really concerning.
@@chrisflo24 It is concerning but the newest generation is better off in other ways. Knoxville isn't even that expensive, there are livable houses there for $150k and he's making $60k so even though Ramsey won't recommend it, if he did a 30-year loan it would be only 30% of his gross even at todays high rates. If he gets married, gets a raise (he JUST started the job), hustles harder, etc., refinances for less, or fixes the house a little while he lives and then resellls in 10 years he would quickly become a comfortable homeowner.
Where I live the wages are about the same but you will absolutely never find anything close to livable for only $150k.
This is the biggest problem I have with the DR plan. There's currently no way you can afford even a garbage trailer in a ghetto on an average income and have it less than 1/4 takehome on a 15YR fixed. I'd have to be making nearly 200k in my area to afford an average 1400 square foot home and keep it below 1/4 takehome. Prices are still above 350k for an average home and interest rates are like 8%!! It's impossible.
Thats where you live not the entire country.
@@blackworldtraveler3711 True, but if I move to a lower COL area of the country, my wages would go down significantly.
Couldn’t you get a 30 year fixed and then just pay a bit more towards the mortgage loan every month? Every little bit adds up overtime, even if it’s a $100 extra every month you’re adding to the monthly payment
Dave would say you are looking at the wrong neighborhood of the garbage trailers in the ghetto. You need to look at the sewers in the ghetto like the Teenage Mutant Ninja Turtles did. I am just joking, Dave Ramsey.
then move...
i got a house in 2016 making $45k/yr. Totally impossible now to do the same thing. If I had to get another house today, I'd have to move to the W virginia mountains and find a house in an abandoned coal town.
Thanks for sharing, these boomers don't want to admit they had it better
You got in at a good time now it went up a lot to afford a home these days
@@CressidaWrenchRachel and the other guy might be in their 30s early forties. How are they boomers lol
@@ricana1160 the comment section is what I'm referring too
@@CressidaWrench my house 2x in over 6yrs. My salary definitely has not. It'd be nice to move for better schools but the house buying attempt was a disaster. Must put 20% over asking, waive a home inspection, and accept closing cost. And for $300k you get a POS 'fixer upper'. We lost all offers anyways because 'investors' pay with cash for the affordable houses so they can flip them into the upper market. So the working people get to compete against these corporate house flipping companies.
I am right there with you. I am teaching in AZ making $60,000 on 2 jobs. The only way me and my wife would be able to afford a home is if we moved to the middle of nowhere. She is still in school too and I teach at a school close by. I am finding every little way to make more money. I opened a better savings account that gives 4% plus in interest. I put what money I can into the stock market. I see if I can work more at my second job and it still isn't enough. I have comtemplated just searching for a new career all together, but I really enjoy teaching with the school I am with now. It's a tough call man and there are many others in your position.
This is my story. Make the same working two jobs in the same state. Unfortunately, just to rent a simple two-bedroom apartment anywhere near (around 30 minute drive) to work is $2100+. I’ve made the decision to leave education over it. My wife and I don’t spend a ton, and we try to live beneath our means… but when I only take home $2500/month-even with a Masters degree and 5 years of experience-it doesn’t leave me with much of a choice.
I am with you in teaching and income. Been doing it for about half a career now. I am also in one of those bottom 10 paying states.
You might have to seek out a new career as bad as I hate to say that. People keep saying ‘well it will be a nice retirement if you can make it there.’ But you have to be able to live first so I’ll leave that there.
So sad. I wish life was more fair😢 while the politicians sit in their comfortable multi million homes and decide how to screw us more and more!
@@Anita.. you are right but I can’t control others. The only person I can control is myself. So I have to seek out the best opportunities I can whether that be education or private sector. Always been a free agent and stay loyal to people not companies or boes.
@@Jedi12789 we can control our future! There’s this mentality that asking for a fair shot or for things to be made appropriate by our government is immoral or even “communism” but we need people that live in this country to have better lives. A select few will have an amazing life here, but that shouldn’t prevent regular, hard working folk from having a home and health insurance.
I think I’m today’s market the “hard line Ramsey way” is probably not the best for every circumstance. My wife and I did 10% down (VA), at 30 years. Yea it’ll stretch us, but I cannot predict the future. I cannot predict if home prices will soar up or down. We pulled the trigger. As long as you can afford the mortgage, taxes and utilities, etc go for it. But I believe the 25% of your take home pay, 15 year, 20% down is not feasible anymore.
When I was a kid, my mom had to quit teaching and switch careers -- because it didn't pay crap. The only way you can be a career teacher is if you have a partner that makes more money than you, if you worked in the private sector before going into teaching and have money saved up, or if you have a side hustle that pays you a substantial amount of money.
This is correct
This is correct my sister wanted to become a teacher but my dad convinced her to change her major. She did and now she works in the STEM fields😂😂
@@erickn7985 She might still get into teaching -- and be in high demand. I like studying certain branches of math for fun, and I've come across a number of teachers that worked in engineering before going into teaching. From what I've noticed, they make better teachers -- because they seem to understand math on a deeper level than the typical teacher. They do things outside-of-the-box and promote understanding math on a conceptual level -- instead of just memorizing algorithms. When I was a senior in high school, I had a C.P.A. that taught business classes. She quit after a year. She was shocked at how little she got paid -- and complained that certain students got on her nerves.🤣 I really liked her.
Rachel can not relate. She had her house bought and paid for bu Dave. She doesn’t know what struggle feels like. She probably doesn’t even know what her house is worth.
😂😂
I'm an engineer that makes good money and I get VA disability money each month. I have no idea how a lot of Americans are even surviving right now.
How do you think most of the world is surviving, with wars, inflations, hyperinflations etc ? Most 3rd world countries survive by building generational wealth, often living in houses that were designed to house multiple generations of the same family etc. Harsh reality is catching up to you.
All about location.
@@blackworldtraveler3711 And timing
USDA home loan, rural NM
2020, ~$80K for 1600sqft, 4bd/3bth on 0.33 acre city lot.
That home is now +$200K
So true my dude. Everything is crazy, crazy expensive.
@@aolvaar8792
Can get a newly built home for $200k where I live.
Major issue I'm seeing in our LCOL area is young people getting constantly beat out by all cash buyers. How many people starting out can do that, even if it's a starter home.
There are no starter homes unfortunately. That ideal existed when just your wage alone could afford you a starter home! Hell, you can't even RENT now unless you make $10k per HOUR!
@MzCollegeGurl11 that ideal existed 3 years ago precovid. There are still starter homes where I live but you better have cash, and THAT is the killer for every day people if they don't pool together as a family and how many can do that either??
@@Elizabeth_lowkeyluxuries then that means there are no starter homes anymore if the average person don't even have CASH to save up for it. That idea no longer exists and will continue to. Rent prices are now at a mortgage rate.....you think the average folk can afford that??!! Insane!!! Preposterous greed is what's going on....and that's IF you have a family to pull together and live together. Not all family are good family unfortunately.
@MzCollegeGurl11 I've only had my home a few years and I had to cut my home expectations in half to get into something. Now, I wouldn't be able to afford it. I think if I hadn't have made that move, I'd probably be RV-ing now because land is hard to afford if one wants to go to a tiny home. Insanity. More affordable housing needs to be built because even with the baby boomers aging out of their homes, going into nursing care, there is not enough houses for upcoming generations and general immigration.
It is insane that we are not even able to afford a place to live anymore. It is inhumane. How can people continue voting for someone that does not care if we end up in the street while working 2 or three jobs? Meanwhile, they are giving freebies to people that are not even paying their share in taxes. I make 61K and houses around my area go for 300K. I applied for a mortgage because I have a 20% to put down but they told me that with interest rates I was over the 50 ratio? and could not qualify for a loan. They could only loan me $200K which is not enough for a house. So we are left here with literally no choice. I hope people open up their eyes next election. I know in the end politicians do not care about us but there bad and there is worse. Right now we cannot even buy a house at all so we might as well give a chance to someone else and hope for the best. People say to move somewhere more affordable. Where? In the hood. I am a female and very petite. I fear for my safety. I have a decent job with no debt and a 20% to put down. I should not have to compromise safety just to find a place to live. Or to move away? My family is here. My parents are getting old. I do not want to have to move away from them. Memories is all we keep from our loved ones when they are gone.
The US pretty much has a one party system. Elections will not help.
Voting for politicians that value big corporations over the middle class is not the answer!
@@kyleliegel They are all like that. Who are you gonna vote for ?
@@binks3371 While there is some truth in what you said, I find there is one party that generally has members with a strong voice against them.
Stop looking for politicians to save you smh.
Even with a combined household income of 120k up here in Massachusetts it's nearly impossible
Shit I'm at 200k in ma and still can't get anything that's decent
Then move out of Massachusetts. Why do yal wanna live in places that is so expensive and caters to wealthy ppl so bad ?
@@MoneyTalkwithMPWhy do you people love throwing around that ignorant talking point?
I was making more money than my parents and grandparents were after university and couldn't afford the homes they had.
And don't say "well you're just bad with money" because it'd still be impossible going all-in!
Pointing out a fact isn't having a "victim mentality."
@10000hpgarage Yes, its a fact that home prices have skyrocketted while salaries did not. No denying that. But sitting there and complaining aint gon do a damn thing. You have 2 options, make lot more money as its a highly competitive world to afford housing in same area or move to cheaper areas. We have to take action!
@@MoneyTalkwithMP Or we can shift this idiotic culture of looking down on multi-generational households as a sign of failure and immaturity.
Mississippi prices or California prices, there’s a home for everyone.. might suck to live there but that’s life 😆
At least in Illinois you’ll get a good decent pension. And the cost of housing here is low to. (outside of the Chicago area.)
I live in the Knoxville area. He’s right, it’s unbelievable what below average homes are going for. Generally the only ones buying homes are out of town cash buyers or people just swapping houses. First time buyers are absolutely priced out of the market. Meanwhile the realtors are rejoicing…
Same situation on the west side of TN
Just googled it and plenty of homes under 200k. Plenty affordable at 60k. Heck plenty of apartments for a grand or under. If you can't put away money for a few years on a 60k salary with a 1k or less apartment then you shouldn't be griping. Also being a teacher in the first place is an awful idea
@@stevenselleck5460 60k 😂
@@Spitzer3964 yes unless you're absolutely dumb as rocks with money or math, or both. 60k is like 3400/mo takehome where a house at 200k with 20% down will run you like $1300/mo at the current interest rates. If you can't figure out how to make that work then there's no hope for you
@@stevenselleck5460 Chill dude…Sorry it’s been 9 months since my comment. I thought you were suggesting there’s houses for sale at $60. However, if you don’t live in the Knoxville area your “plenty of homes under 200k” is a stretch. Where do you live?
Honestly this is why Dave's advice on buying home is complete garbage. It makes absolutely no point to save WAIT and get a 15 yr loan. You can't save fast enough.... bought MY house 3 years ago and my house value went up over 100k.
“Move another 20 minutes out” - while not a bad recommendation given the circumstances this is a terrible solution for society long term
That's the problem. A few can do it, but the majority of people would not be able to do it, there is just not enough room for everyone to go outside 30-40min away so people are forced to stay in debt renting in the places they are in. Somehow, magically, people will find all that they need in no time.
“20 minutes out” in South Florida is 5 blocks down because it takes that long with traffic. Rural America truly lives a pleasant life.
All about location and choices. It’s fine at the two places I live.
Always been about 25 minutes to drive 22 miles where I live for work and see grazing horses,farmland,and bald eagles. About 20 miles of highway with no toll. No reason for another 20 minutes.
If you add up all the minutes I have sat in traffic jam the past 20 years it would probably be around an hour.
One of the reasons why I left Palmdale California and the space coast of Florida for Oklahoma years ago.
Now I have a beach condo in Florida on the gulf coast south of Naples and don’t even need a car or care about traffic.
Even if you make $100,000 per year, it is nearly difficult to buy a home in places such as New Jersey, New York, and California and it is much more difficult to compete with buyers prepared to pay more than the asking price.
I think they did answer his question. He'll have to manage his expectations about what he can afford or figure out a way to make more money, probably both. I am pretty much in the same boat as he is. The good news is that while the housing market is bad, we can be working to set ourselves up for when the housing market becomes favorable again.
housing market is always going up and up and up
@@binks3371 The market will correct itself.
“Becomes favorable again” lmao. Good luck with that. Why are Americans so delusional and stubborn in their quest to buy extremely overprice homes, the prices of these homes should be criminal, because they are not worth the price tag, the 40% mark up. Good luck with that incoming train wreck. America loves to learn the hard way, oh corporations are screwing us, don’t worry just “work harder”. Delusional.
Having a family when shopping for family homes helps a whole lot... LOL.
Dude, you are not a family...stop looking for a SFH.
Homes are so expensive now. I got a 2 bedroom townhouse for around 250k in a relatively cheap cost of living area and put 20% down but the 15 year adjusted mortgage is still around 30% of my gross income making around 80k which is a decent and above average salary for my area. My interest rate is 5%+ because I bought in last year but average homes are still too expensive for the average or even above average salary. Doing 15 year mortgages on anything other than a shack these days is really difficult without a substantial down payment.
Clearly the government needs to put into place some kind of policy regulation that stops pre-existing single family homes from being used as a business and they need to incentivize businesses to build new homes if they want to use them as rentals. This isn’t fair and it’s heartbreaking for those of us who have worked sooooooooo damn hard our entire lives to try to own a home and have a family that we could PROVIDE for.
Much of the problem is these real estate moguls (Like Dave) buy up all the housing, do a few upgrades, and "flip" them for a much higher price. Or rent them out (or turn them into Air BnBs) to make their money. Congratulations to the wealthy. Those of us living on $65K (my retired pay) can't find anyplace to live except some cheap trailer park.
That’s not the problem. People have been flipping houses forever. The problem is interest rates at 7.5%, inflation, and the 30% appreciation of real estate in the last 3 years. If you make $65k in retirement, that’s an amazing retirement income. After the past 40 years you should own your home and have it paid off. You should be sitting pretty.
Your retirement situation is the bed you made that you get to lie in. You had 40 years to avoid that, including some of the greatest economic booms ever seen. How about those of us in our 20s, who never even got the chance to buy a home before this terrible market set in?
@@AK-jt9gx You want to own a house in your 20s? When I was in my 20s I was working at minimum wage jobs (back then it was $2.35 an hour) until I decided to join the Army to help pay for college. I lived with roommate friends. I certainly couldn't have afforded a house. Few people could by themselves. You start at the bottom and work your way up. At least that's the way the system used to work. Yeah, I wish I had saved more. That's that I would suggest for young people in their 20s - put more away for retirement. It's hard though, because when you're young you don't really think about being old someday.
Teacher in California making 60k John took the words out of my mouth " I did everything right up to this point how come I can't afford a home in the small town I grew up in. Husband and I take home is 8k a month which 3 years ago was great now, I still can't afford a decent home. A decent home is 600k anything below is a more than just a fixer upper. We are now moving back home to my parents to save up as much as we can for 20 percent down. hoping next year prices start to drop. Making the sacrifices now before we start trying for a baby next year.
You hit it right on the head, things have changed so much in 3-5 years. My family takes home $8K a month as well, 5 years ago you could get a decent home in Canada for $450K. Now it's north of a million. Yet we still take home $8K/month.If you then add the massive inflation on food/gas etc.. You are even way further behind 5 years ago.
Where in CA? Most of teachers I know make 6 figures minimum
@@slayden633bingo. Plus benefits, plus working only 9 months a year.
Bruh teachers in California are not getting paid 60k! Except it is shitty and cheapest part of california! This dude is from Tennessee
I lived with a family member in order to save enough for a down payment. Its humbling but its the only way.
In time home prices will come back down. I will never be able to afford my dream home, even if I worked two full time jobs. That being said I am a homeowner. You have to lower your standards and purchase a home within your means when the right opportunity presents itself. $300,000+ homes aren't the reality for most Americans.
$300k isn't really a big home in his area. However, I saw lots of things that work for just him for $50-80k less.
@@KatieBellino This all depends on what he can work out though. He has to be employed and he also can't not make much money over time...
60k salary is very average. How are average Americans supposed to fare these days?People with a stable job and an education are scraping by, let alone millions of people who have lower end jobs. This is not sustainable idk how people live and what’s gonna happen in the future.
Really refreshing, thank you for being so down to earth and honest about this. It's really frustrating, especially because teachers give so much to their communities and really care about their families. I hope things get better, so many people deserve more.
No they don't. Most teachers are leftwing child-hating nutjobs. A few, very few, are absolutely great.
But they didn’t even give him an answer. They can rock the boomer Ramsey boat. They just want him to “save” until he’s 60 when he has enough for a down payment on a 15-year mortgage (which most lenders won’t even calculate for you these days).
Bull!!!
60k for 3/4 of the year, Not bad!!! Too bad he isn't that productive with the other 1/4
@@youtubekeepscensoringme3357You didn’t listen. He works several side jobs also and it all adds up to 60k. He’s probably only making like 40-50k as a teacher.
The 15 year fixed mortgage plan realistically only works for high income people. The guy has a good income. But keeping to these unrealistic rules, he is simply going to get himself outcompeted by everyone else doing 30 year fixed mortgages.
Using Dave's calculator you need to net 13K a month the buy the average priced home of around 412K. Meanwhile the average person here nets like 2.5k per month lol. So houses are just for surgeons and ceo's with his advice.
My niece and her husband got wealthy in real estate by buying multiple properties for little or no money down in a resort town and renting them out as Air B & Bs. They’ve sold a couple of them at great profit. They are both in education.
@@pamcornelius9122until that fails. Dave would say the risk is too high
1st homes should not be "average priced"
@@Dan16673 They just made over 700K profit on the two properties they recently sold. They got really lucky because they are in a beach/ golf area and they bought the townhouse and condo over 10 years ago at a low interest rate. That profit is from the sale of the homes, it doesn’t include all the Air B & B money they made from them.
@@pamcornelius9122 yeah for sure. It can be done. I'm saying dave would day no.
The say a recession isn't coming yet people making a good income can't afford a home
America has been in recession since April 2022.
There no correlation between either of the things you mentioned. There are still buyers for the “overpriced” homes out there. Supply and demand. What the average person can and can’t afford is moot. There are enough above average buyers to support the market.
@@eggsinsideme Well so why doe housing continue to get more expensive over 30 year time frames?
I think Dave needs to reconsider the 15 year mortgage rule. Times have changed for the average American.
In Canada we now have people with amortizations of 90 years, its absolute insanity.
If you can't afford a 15 year mortgage you cannot afford a home AT ALL. That's the way it is and has always been.
@@amireallythatgrumpy6508yes and if no one can afford a home then we’re failing as a society and prices have to be addressed by our elected officials. It’s that simple
Math has not changed, however.
It’s getting harder to buy a home exspecially if your single
I bought my home (950+sq) for 85k in 2020. I'm also a teacher and made probably 45k at the time. It definitely needed some updating/remodeling but nothing major. I live in rural Arkansas though. You can buy homes that inexpensive. However, you will need to sacrifice the liberties that a city gives you
Most are not willing to live in a shithole in the middle of no where though
rural Arkansas?!? No thank you very much 😝
@@frankie9953 I own property in the rural south. Please stay away.
@@alinatamashevich3354 lol, good for you. 👍
you couldn't pay me to go to the rural south.
@@frankie9953 Awesome. 2 rules for living in the south. 1) we don't care how they do it in California, and 2) if it is so great up north....go back.
I’m from Los Angeles. You can’t even survive renting forget buying at that income level wage
In 1996, I made $35,000 per year and begged a bank to give me a loan to buy a fixer-upper house in a good area. The bank didn't want to loan me the money but eventually they did only because I had good credit. It took me years to fix it up to my liking. Paid the house off three years ago. I always thought if I can do it anyone can do it.❤
Determination and drive - not many people have it these days!
What a great story and very encouraging!
I'm 45, making what my stepfather made in 1990 delivering mail . He paid $60k for his house then with no down payment. Now the house is over $500k.
Key point: "In *_1996_* ..."
@@AB_Evans well, maybe. But I was broke as hell. My salary back then barely made mortgage payment.😁
My buddy and his girl both earn 75k a year. They have 80k saved for a house. There's absolutely nothing in our area of NJ that they can buy. Hell, I couldn't even afford to buy my own house right now. Hopefully this situation will change.
I'm not sure where they live, but they might qualify for. Habitat for Humanity home. Our local affiliate is the only builder putting out homes under $170k and less
@@emmy2831 I doubt it. We are in NJ. They have 150k a year income. There's no way that they will get anything from habitat for humanity
He should marry her before they buy a house together
Tell your friend not to buy a house with her unless they are married.
a 300k home will cost $2400+ per month depending on utilities and taxes. And thats on a 30 year. So yes, a "normal" home is out of the question for affordability for someone making 60k. The only way to buy a house the Dave way on a 15yr, he would have to find a house that is like 150k. Literally shacks cost more than that today. Maybe time to find a new job...
or MOVE
He's going to quit - has too. And we are all the worse when we lose someone like him, doing the actual work of advancing our civilization unable to enjoy of its surpluses, than some financier or hedge fund manager exploting massive tax loop holes who adds nothing to the productive economy.
And then we attack them, too, everyday, instead of paying them more. Nearly all my family who were in eduction have or are planning on leaving soon.
If possible move back in with parents and save. It’s a hard pill to swallow for some but it would stabilize him and many others. If more people did this (not saying you don’t contribute to the house bills) they’d be in way better shape to save for a home or starting a business
You’re right. I’m a teacher and moved home with my parents from age 26-28 and I paid off my debt and saved $25,000 to kickstart a home down payment fund. I understand that’s not a possible option for everyone though.
Or another option is finding a suitable roommate to help lower expenses.
@@carlaritchie331 People looking for housing don't even always have the money for a cheap place. I used to live with 3 roommates who together over years averaged less than $100 per person per month!!!! People who have the least money also tend in my experience to have to most need!!!!!!!!!!!!!!!
I am curious as to how Dave would of answered this
He'd say, "Get a bigger shovel you pansy!"
The correct way: “Make more money!”
Similar situation here. I make around 50k and a dilapidated hole in the wall that needs extensive work starts at 225K. Then factor in todays interest rates it’s ridiculous. Not to mention I’m completely debt free and still can’t buy a house. That’s the whole reason I followed the baby steps 😢.
I’m in the same 🚤 boat
Bought my house with a usda loan in 2013 a month before i turned 23 made 12$ an hour a a local factory 68000$ its my forever home no intention of moving 3% interest my area in southeast ks average house is around 75000 so glad i chose to commit early in life to a long term plan
Yes, I'm convinced that getting in when you are young rather than renting for years is smart. A 30 year mortgage that will be paid off well before retirement age is a great investment.
Median home price in Knoxville right now is 335k and households with 75k income can only afford 12.5 percent of homes so I feel this guy’s situation it almost seems hopeless
And many of those homes are being gobbled up by cash-buyer investors. So frustrating to see an affordable house only to see it back on the market as a rental a few months later
I feel a lot of sympathy for those who are currently looking to buy their first home but missed the glory years when homes were more reasonably affordable during the Trump administration. Maybe Dave's advice suggesting to wait and save during the late 2010s for a bigger down payment on a home in the 2020s wasn't so good after all.
Trump started this with the Tarp payments which investors used to buy up and flip all the houses which caused prices to double
I bought my home during the Clinton administration and homes were reasonably priced then.
I feel this, our area we were just start looking at homes and prices jumped up so high we now can't touch anything unless you pay like 340,000. when just about a year ago homes were about 240,000.
This market is to crazy.
Be grateful lol a house for me costs 1 mil and for an apartment is 500k
Is criminal, is what it is. Ridiculously overpriced homes. But apparently owning an overpriced house is like a God to Americans.
I'm sorry but, with this particular caller, 95% of your replies consisted of platitudes, rather than a detailed plan of how to deal with the miserable situation this gentleman is in. AND, one of the ACTUAL pieces of advice? "Leave your current profession as a teacher." Come on.
What plan is there when you dont make enough?
what do you do for a living ?
@@binks3371 You're asking me, my friend?
@@StanleyCullerEsq. yes. Im in europe and keep reading that 50-60 k is very low pay in the US. The caller is a teacher and apparently cannot afford sh*t even with side jobs. So Im curious what do people do to earn 80-90-100k ? Not everyone is in IT I suppose.
@@binks3371 Well, everything you've heard about 50-60k now being chump change in the U.S. is, sadly, mostly, true. I'm retired, now, but I did a decade long stretch managing and independent music shop, followed by an even longer stretch working production in a factory that produced auto parts. All the best to you!
Me and my wife make 140k and can't even find a house to be able to buy in miami, we get outbid every time by other offers and houses are already 450k average. The 15 year mortgage is not doable here. What we have is 10%down of that and can't still find a home. It's really frustrating 😔
In 2020, 1600sqft, 4bd/2bth, on 0.33 acre city lot = ~$80K.
USDA, 103% loan (3% back at closing), $0 down.
Downside, 2-hour drive to a City of 50K, in NM
Good luck, Miami is a very tough market
On the other end, it has taken me three months to find a 1/1 to rent that has not outbid me and I still need a roommate to afford it in Miami. Nuts.
That’s why you don’t live in Miami geez one of the most expensive real estate markets in the country
In New Jersey average 1 family 🏠..1,400sq ft.. 3 BD 2 bath are going for 500-700k
And imagine, this guy is in a state without state income tax...
Can’t do it without two earners anymore. James needs to start dating more
Or get married with someone pulling at least 50k
So basically live in the hood or change jobs. Sadly it’s true because of the current state of the housing market.
If enough of us move into the hood we can gentrifie it and push the hoodlums out.
I totally feel for this guy. I'm 31 and am fortunate to have owned 3 homes and all were purchased before this insanity started. I purchased my first home in 2013 for $126,000. It was brand new (built that year) and was on a half acre wooded lot. I paid less than $800/mo for that mortgage (taxes and fees included). I sold that home last year for $280,000, which, at today's rates, would 3x the mortgage payment I had. Similarly, my second home, I also bought brand new for $260,000 in 2015. My mortgage payment was less than $1,500/month on that home. I ended up selling that home, also last year, for $450,000, which, at today's rates, would 2.5x the payment I was used to. I am fortunate to have purchased my current home for $225,000 back in 2018. Rates weren't great that year, but we refinanced at 2% when rates hit rock bottom in 2021. If I were to sell this house now, for it's market value of $400,000, the buyer would be paying 2.5x what I'm currently paying. I've always bought in middle class areas, but now the average home price in my area is over $400K. That, combined with 6-7% interest rates, makes it damn near impossible for someone making that kind of money to even think about buying a home in my area now.
I'm jealous of you. Smart guy
And where do you live?
The problem is that Ramsey advocates for real estate investing. And people like us can't afford a house because the investors are driving the price into the stratosphere.
Of course you can afford a home with 60K income!! If you put about 80% down-payment 😂😂😂😂
There are houses in Knoxville for $150-$300k+. Have a feeling he’s aiming for the higher range.
He should consider a 'starter' home.
What do you think the most ramsey would recommend he buy? Answer is ~$110k.
5:31 I did this... went massively in debt at the encouragement of family members. I couldn't make it at my first real job of an Air Traffic Controller (one of the most stressful hardest jobs you'll find) and I have struggled ever since.
a good thing too. Air Traffic Controller jobs are going the AI route.
@@binks3371 I've heard about that... Pilot's also. But I think it'll be a long time before that happens. haha.
@@TheFlyingZulu we have self driving cars already. Technically they could probably implement a 100% working system within a couple of years.
Yea the caller is right. As a teacher he literally can not afford a house in Knoxville. And no they are not big on town houses. They do a lot of these small 2br houses. But those prices are going up and up. Get a new career is about his only option.
Just checked Zillow and saw a bunch of 2 bed 2 bath townhouses for $250k. That should be doable for a $60k income even with current rates. But yea, looking at the market it’s slim pickings for that range.
Gotta start somewhere though if you don’t want to leave the area
@@mightymouse9001 Not according to math. That will be more than 50% of someones takehome pay at a 5% down for FHA. And that is only assuming there is literally no other debt and an underwriter will write that loan.
@@damonaniton not sure what numbers you’re doing, but using an estimated 6.3% from navy federal 30 year mortgage 5% down no PMI conventional, $3125 yearly taxes, $875 home insurance. I’m getting a $1803 which is 36% of gross. While not ideal, is doable if you want to own where you live.
Could always take a second job for a year or 2 and then recast the mortgage to keep the rate, but adjust the payment to below 30%
@@mightymouse9001 paycheck city and a mortgage calculator.
someone making 60k is taking home 960 a week which is 3840 a month. ASSuming now insurance or 401k deductions.
Assuming a 5% down payment at a rate of 6.5% and letting the calculator assume for insurance taxes and PMI we are talking 2k a month on the mortgage.
So that is 52% of take home going to the mortgage. Not even the full monthly cost of housing.
Will a bank qualify them. More than likely. Can they afford that. Absolutely not.
And this guy quoted 60k with already working 3 jobs.
@@damonaniton oh crap must have missed the 3 jobs for $60k. Wow teachers are underpaid.
I don’t like how John projects his psychobabble on the caller. Inflation and high interest rates are a real issue brought on by the corrupt regime that has highjacked this country.
60K is the average American HOUSEHOLD income. And this show with a bunch of “finance gurus” has no better answer then get a better job or drive further. If teachers, public workers and other essential members of our society can’t afford housing where they live then something has to change. And that has to be subsidized housjng for those that can afford it. Excited about Airbnb beginning to fail and for people with tons of rental properties to see the appropriate losses on their investments.