Can you please please do a video on young people moving out from home, not for uni but after finishing studying and renting wether it's alone or with friends or what to know before and when you're ready to move out both maturity, financially and reasons why you want to move out, people in London/ outskirts of London and your experience first moving out from home
The problem is when you get old. How can someone on a pension pay 1,200 a month in their 70s. This is the issue for me. Cant be broke in old age. Also you can pass property on to your children. Generational wealth is very important.
HOW in the word does it work where you're from? Where I am my family that has retired and their pension is an average of the last 10 years they were employed, which tends to be the highest amount. There is also a "grace period" for the last 5 of those 10 years and the company can't sack you in that time because of your age.
Rather than investing in property you can invest in other assets like the share market, I’d way rather give my kids a huge share portfolio than a property they will lumbered down with having to sell (& pay a lot of money to sell)
@@Daaaanielle I'm from the UK. (I'm not a pension expert so please excuse me if this isn't 100% correct) but final salary pensions are extremely rare or pretty much extinct. Instead you and your employer both contribute. Whilst it is enough to survive from my understanding I doubt that many people have a pension that is big enough for such a high rent.
You should always buy, no need to buy a new car though, buy one that is a couple years old, keep it for around 10 years. Cars are a ridiculous waste of money (tax, insurance, damages). Unless you are loaded. If you can afford a good car, one that will last a while, get it I'm not an expert though, but surrounded by a number of wealthy people, you don't see wealthy people change their car that often.
@@DariaIvanovaTV because it's more profitable for the dealer. Not because it's better. Sure there are many cars where they are worth financing. Mainly brand new cars (new model/refresh) as they have no history. However, if you do your research and look for more reliable vehicles and then filter within that list, you are FAR better buying that car outright.
I have paid cash for my last two cars and I never want to finance a car again...I got it for almost $10,000 from a private seller a dealer would have charged around $15,000 plus the interest I would have been paying...I am stress and worry free because I own it...then again I’m a person that doesn’t like debt...I pay all my credit cards in full before the due date...interest is a waste of money
This is fantastic content. I honestly feel like managing your finances should be a compulsory subject in secondary school. A lot of us go out into the “real world” with little to no clue about how these things work.
It should really be taught in school... as well as reading & understanding (negotiating) documents/contracts, a lot of people have made huge mistakes because of this.
Sarah Jayne Scott or maybe the government expects your parents to teach you these things. I’m going to teach my kids all these things. I’m already teaching my 10yr old about savings and good and bad credit.
I think another benefit of home ownership is prevention of old age poverty. Old age poverty is on the rise and pensions are not stretching to cover current rent rates at least in the UK. At least if you own, if even if you let it go to shit like a lot of old people do or downsize to something a lot more affordable it’s still a home and combined with waiting lists on council homes being years for thousands of people, it makes it more of a risk. It’s sometimes about having a home than not investing into something at all.
Absolutely agree Layla. Also here in the UK we dont much renters rights compared to other countries like Germany. Can you imagine being older and then having to move every couple of years because your landlord wants to sell etc. Also with the current lack of investment in council housing I'm not sure it will really exist in the same way as we age.
@@fungirl0123456 Totally agree with you and Layla. Renters don't have much rights here and the price of a London rental varies as much as the standard of property. I don't really want to be paying money for something that I can not decorate, will never own and will never really feel like mine, so buying is my personal preference... even though I'm not in a position to do it at the moment.
Landlords are, by definition sub human. Well, most are. Others just unpleasant chancers and low tier trash with aspirations to hold power of other people. If your well being essentially rests in the hands landlord then expect to die in the streets.
@Lou Lou the same thing is happening to my grandma too. The council is us use all of her own saved money for day time carers etc and offering very little support. It's a huge concern because the costs are so expensive and we may run out of money soon.
Some points you missed: - Buying doesn't necessarily mean being tied to living in that property. If you want to move, you can rent it out to tenants. Plenty of people do this, but of course there are associated costs and legal obligations. - You can make money from the property you currently live in by renting a spare room out to a lodger - this applies to both renters and buyers, but renters will need the permission of their landlord, which may not be granted. - As a rule of thumb, the sooner you buy, the more money you will save on the property purchase price, and the sooner you will begin building equity. - The sooner you buy, the sooner you will be done paying off your mortgage (and the sooner you will be done paying for housing altogether) - If you intend to rent for the rest of your life you will need to put a LOT of money into your pension (unless you have a short life expectancy or can rely on welfare benefits - but to meet the income threshold for benefits you'd need to be living on the breadline) - If you buy leasehold, commonhold, or even some kinds of freehold, you will be liable for service charges and major works costs. In older blocks these can be extortionate - normally 10k-30k, but I've seen them as high as 150k for one batch of works. No flats are sold as freehold so you need to factor service charges into your pension plans as well.
@@FreakyBo0o thank you! I used to work as an adviser for leaseholders so have a little bit of knowledge on the ins and outs of property ownership despite being a renter myself.
As a homeowner who has rented out spare room to a lodger, a huge headache. As a homeowner who is now considering renting out the entire home to tenants, very stressful-- a headache. I am still responsible for any repairs due to wear and tear. I am still responsible for the general well-being of the property and that's not even making a profit, that's breaking even w/ using the rent to cover the mortgage.
My two cents: not everything in life has to be an investment or be part of some hustle goal. Sometimes paying a bit extra for something just brings happiness and security, and it's worth spending money on your quality of life (even if you won't make money off that decision now or in the future). It's fine to rent if you want a more carefree and flexible lifestyle. That might suit you best in your current state. Owning a house is hard work and a huge commitment! Not something to rush into for the sake of saving money on rent.
I never looked at it that way, I always felt bad because I'm in my 30's and I don't own a home. People always tell me your paying someone else's mortgage but I don't feel financially secure enough to buy a home yet.
Depends, if you born of privilege, then maybe yes everything is not an investment. But if you not then everything is a hustle and investment and Bill gates dreams.
@@lovingme1st973 I'm not 30 but I don't own my own house. I would like to in the near future some day. However, please don't put unnecessary pressure on yourself. Do what you can and makes you comfortable and happy and what fits your budget.
LovingMe1st Omg same!!! It has become the topic of conversation with all my relatives always asking so “when are you going to buy a home” and I just stand there looking puzzled 😕
@@wirelesschick123 Are you prepared to buy a home? Can you afford it right now? Are your relatives making u feel bad for not having your own place. My encouragement again, don't allow the pressure to get to you. I feel the same at times, however Rome wasn't built in one day & u can only do what you can.
May I ask how you went about it? I’m 19 and I’m actually signing off on a piece of land tomorrow morning. The reason why I’m doing it so young is because in Australia, we currently have a lot of grants that allow first home buyers to save $55K when building a home. I have researched my area; it is a two minute drive from the major highway, close to both a primary and secondary high school, close to one of the major office region, close to many amenities, and a new train station is to be built a ten minute walk away from the property in three years time. Can I ask, did you rent out your property or sell it? And what do you recommend I do?
@@abbeybarton7281 Wow, I didn't get notifications about the comment until now. I hope it went well on your end! I finished my BSc. undergrad during The Great Recession (2012) so there were limited job prospects (great timing eh). I was lucky enough to move back in with parents. after my second year after I moved back in I realized the quickest way to grow my net worth was through owning real estate. I took the following year to save a 5% down payment which is allowed in Canada for first time buyers. I bought a 1-bedroom condo in central location and was 10 minutes from work and the city. Over the next 4 years that area's home prices essentially doubled due to infrastructure developments and the ideal location with good schools and proximity to the city. I didn't rent it out as it was my primary residence and only had 1 bedroom. I recently sold that condo for a nice profit and moved to a cheaper area 1 hour away. I'm glad I made the move this year. I have nearly double the space, a lower cost of living and a nice lake view. They're building a new train station in my new area which should be completed next year. The new transit will probably help us both in terms of property value (sorry for the essay)!
People who own houses aren't struggling with rent during this Covid season. For me owning a house is a solid retirement plan. Speaking from an African Context.
You can always move if you rent though. If you lose your job (like during Covid) you can always find a cheaper place to rent. You can't just step out on your mortgage. Yes, you might be able to defer your mortgage for 6 months, but what about after that? Or what if the prime rate goes up to a point where it is hard for you to make your mortgage.
@Nomad Diaries In rural areas or urban areas? In urban areas there are mortgages. The homes are expensive so in my country people take loans and pay for a long period of time
Excellent, start young! You may want to check out the Budgetnista and join her Dream Catchers FB closed group. It focuses on credit, debt reduction, saving, investing, and financial literacy. Its changing lives. Stay blessed!!
This is great advice, I am definitely one of those people whose goal in my 20s was to buy a property which in South West London ain't cheap! But we did it and it's such a weight off our shoulders not to be renting anymore. I think remembering not to keep up with the Jones' is key, just because you can borrow a certain amount doesn't mean you need to take on all the debt. Don't take on a mortgage which is out of your means and cripple you if interest rates increase.
I'm 21 and unfortunately I have to move out so I was thinking of renting for a while. Im in school and my boyfriend works as well as me. I hope to own a house by the time I'm 27 and finished with school and everything.
Well said sis. I tell people that their is nothing like credit card in Nigeria. You want anything, from a car to a house or anything, get your cash ready.
I rented for 6 years whilst trying to save for my own property. We now pay £50 more a month each for literally twice the house size! It’s ridiculous. However saving for a deposit is SO DIFFICULT when you’re paying someone else’s off at the same time. However DO NOT buy in 2020. I’ve heard so many stories of people having their mortgage applications denied due to the economy. It’s really sad because people are obviously also struggling to sell. Bloody ‘Rona
No first time buyers will need an even bigger deposit now. It won't affect people who are downsizing or people buying houses similar to the price their own home is , so same mortgage payments. I also know people who are having house viewings whilst still obeying social distancing.
@Gigi gigi Go for it if you have a sizable deposit. All the best mortgages are off the market now, banks don't want 5% or even 10% sometimes. If you have the money you can grab a bargain but for anyone counting on 95% mortgages it's a no go :(
Jenny's Asmr Fun And Relaxing Videos Not true. I have an average credit score and this summer, I was able to get a deal with no down payment, no closing costs, and no PMI. My mortgage incl. taxes is nearly 300 less than my rent. I’m a first time home buyer as well. Just have to research and find a program that offers the most.
It's a good idea to suggest that people should rent when you yourself own property that you rent out. Renting does pay for a landlord's lifestyle (no two ways about it, the aunties are correct, you are literally paying someone's mortgage!). Buying property can make you money in the short term (which is why people chose to flip properties), you just have to make sure it's a smart/calculated purchase. The comparison was nice, but it's not that straightforward and some of those costs/terms vary. For example, my mortgage on my first flat was a free product on a two year fixed rate and then after two years I was able to change the rate and pay roughly £100 less per month (rent pm is likely to go up, not down - very unlikely that it will be the same over a 5 year period). If you shop around you can definitely pay less than £1.5K on legal/surveying. If you own a home and want to up and move the country you can sell your house or convert it to a BTL and use the equity to buy another place or free yourself up to be able to rent. There's a reason why renting costs more than a mortgage per month (HMO rooms aside), you are paying for the property's repair works as a part of your rental payment. Out of that £1.2k per month the person renting 'Sharon' is paying, the landlord is probably paying half the amount in mortgage costs. As mentioned below, buying sets you up for retirement, helps with generational wealth and equity can be released for things that you want to do along the way. Also, for the people in the comments who are worried about buying property in the current situation: the property market is cyclical, when it goes down, it goes back up, so there never really is a 'bad' time to buy property. Now is the time to make a 'SMART' investment, but even if your investment isn't particularly smart right now, the chances are if you wait long enough, prices will rise and you'll be in positive equity. Sorry for the essay, I'm passionate about investing in property!
So what would you suggest to someone who is 24 on 20k a year? I’m on an apprenticeship scheme at work that lasts 3 years, but may pay will incrementally increase during that time. Considering where I live to get a 1 bedroom flat it would cost between 180k and 270k.
@@abirose4875 I am also 24 and but actually buying a property, I worked out if me and my partner had stayed living with our parents instead of renting we would have enough for a house deposit over the past 3-4 years of renting about £28k. We are fortunate to be getting help with buying our house but moved back in with my parents for the past 18 months and between the two of us saved nearly £20k. So I would say if you can stay living with your parents do it and if you want to own a house in the end I would not start renting. That's my personal experience anyway.
Abi Rose it depends on what you’re willing to sacrifice. You can figure out how much (roughly) you can borrow using mortgage calculators. At 20k, banks usually would lend you 4.5x your salary (so that’s 90k, considering you haven’t built up debt and you have a reasonable credit score) then you’d have to find between 5-10k for a deposit. For me, being able to get on the property ladder meant moving half an hour away from where I grew up.
Loving this video and only 20 seconds in! Patricia gave me the push to start my RUclips Channel she said "You don't have to be great to start but you have to start to be great! " Thank you Patricia for helping me realize my passion 🙌🏾🙌🏾🙌🏾
Can't believe you replied! Why am I getting emotional? Thank you for continuing to inspire all of us young black women with big dreams!!! BIG LOVE 🧡💛💚💙♥️💜
Just watched your brownie video, your meme edits are jokessss made it super enjoyable to watch 👏🏻 I’ve known about the Betty Crocker hack for a while but I’m out here using a bucket of vegetable oil so the Fanta trick is gonna save my waist haha 🙈
OOooooO we just started our RUclips channel a month ago! Heres to both of us seeing success! P.S. just watched one of your videos😂 Subbed! Love the energy girl !
Love this and it’s exactly what I’ve been trying to explain to people who feel sorry for me that I’m a renter in SE London. I used to be a home owner in Scotland, sold my flat (which was a constant money drain) for a profit and now I’m enjoying the freedom of being able to live anywhere I want.
Most goes to your bank (interest). When you rent, most of it goes to the landlords bank (interest). I’m a landlord and the rent we receive doesn’t even cover the expenses we pay the bank and such.
@@amberpaul4245 It should do, so maybe you've miscalculated somewhere, aren't charging enough rent or have an unsuitable mortgage product (I'm assuming your mortgage is a BTL one and is interest only?) Yield can be calculated before you purchase a property using comparable data. If the yield on a property isn't high enough, then you shouldn't have bought it as a BTL. Maybe you should speak to a financial advisor if you haven't already done so, as they can help you get a better rate etc. Rental properties are supposed to make you money not cause you to lose it!
@@WhenLoveisProjected In some markets you can only get so much rent. For example, in London studios rent for about £1k to £1.5k but they are very expensive to buy (usually around £300 to £350k), which would be a mortgage of about the same to rent out.
@@kotare86 The mortgage would be interest only though on a BTL so the landlord mortgage payments could be around £500 per month on a building worth £300K depending on the length of the mortgage and the rate of course. That being said, as I mentioned in my comment, yield needs to be calculated before you purchase a BTL. If it isn't 7% (which is considered good) or higher, might be best to avoid. Edited to say: A residential repayment mortgage is likely to be around the £1K mark on a £300k property.
I feel so dumb because I normally watch you for hauls and other stuff and I just now decided to look at an economic video. Damn I should have done that a loooong time ago 🤣 Thank you queen this is the most I’ve ever learned honestly!
I feel like some people in the comments are missing the point, the stigma of renting shouldn't be there ESPECIALLY in the short term for young people who don't want to put down roots - its not to say they will never get a mortgage in their 30's/40's but both options are great, it just depends what you are doing at that point in your life!
Mortgages are dependent on age, as they are based on retirement. The younger you are, the longer the length of time you can stretch your mortgage payments over, so the more you will be able to borrow. If you wait 10 years, for example, property prices will have increased (as they roughly double every 10 years) and you won't be able to borrow as much. It's better to buy as young as possible IMO, otherwise you're selling yourself short. Also, it's a misconception that buying a property ties you down. I bought a flat, sold it after 2 years or so and then bought a house, which I have had for just over a year and I'm already looking to move on. I don't feel tied down at all! In that time, I started with 7K in my bank account and have built equity in my home of roughly 90K (depending on what I end up selling in for. In any case, you don't have to buy a property to live in, if you're not ready to move in, it can be a BTL investment. The rent you charge can cover the mortgage plus part of your own personal rental costs. Mortgages can work in the short term too.
I think it's also important to consider the SIZE of the home because some homes will cost more in fees than others. I own my home but I purposely bought a place which was below my means, so I don't have to deal with paying major fees etc. Don't buy a home to keep up with the Jones.
When you want to move and have a house, you can still move where ever you want and simply rent it out. The paid rent would cover the mortgage and you are free.
Exactly. I’m in the process of buying now knowing that I’ll probably have to relocate this year for work. I’m moving forward because friends have done the same and finding a professional property manager is easier than ever. There really are no pros to continuing to rent if you can afford to buy and at the end of the day, affordability is really the only deciding factor. This advice always doesn’t take into account all the programs available to first time home buyers. These things are very regionally specific. Take this with a grain of salt.
In the US, the owner is responsible for maintaining the property. If the renter complains about a broken window, you have to fix it. It can be difficult/expensive to maintain the property or doing check-up if you don't live in the same state/country anymore.
That's what we've done, we rented our house out in the UK and now relocated to South Africa from the Middle East. Our UK tenants pay our mortgage and we get to live freely.
Something else to keep in mind for those buying a home. Once home is paid for, you will still need to pay property taxes that are usually escrowed (Mine are approx. $1,600.00 per year in Louisiana in the U.S.), as well as insurance (Mine is just about $1,200.00 per year)...so even if you don't have a house note, you will have house related expenses....still less expensive than renting every month :)
I am a realtor in US and I see that a lot that people are in so in rush to buy a house because of wrong message media sending that “you have to own a house and etc “, so that’s awesome that you are opening people eyes and showing that renting is not always such a bad option 👍🏻👍🏻👍🏻
Hi Patricia , just a little thank you to you . I’ve been renting for the last few years and to me it was dead money. thanks to your the break videos and budget template posted early this year, I decided to knuckle down with my savings this year to reach my house deposit goal. I aimed to have my deposit and savings for extras saved up by the end of 2021 but by using your budgeting tool I’m now on track to reach my goal by jan/feb 2021. I’ve saved more this year to date than I’d saved in the last four years combined .I’m single and in mid 20’s so it will be a huge achievement for me . I can’t wait to start viewing houses next Spring and get started on the property ladder!
I love your videos. They are educative. However, could you do some videos for young people who dont have it all together at 24? I mean so many of us (especially in the black community) fall in the category of our parents dont have savings, assets or businesses left behind for us in terms of capital or investments. We have spent so much time in school hoping that it will be the way out for us. Meaning that we probably dont leave school until we are in our late 20s. Then that doesnt even guarantee us getting "good" jobs. So I know the usual start a business, create a website talk but that path isn't for everyone and for most the businesses may not flourish. So back to the drawing board we go. What advise do you have for an average Joe. We dont aspire to become wealthy or rich but have a sustainable and secure average life. Edit: and I forgot to add, most black people have the burden of being the first of everything in their family so you have the burden of supporting your family.
What i said i have two zero hour jobs soon to be one. A child and on benifits none of my large family are sucessfull, feel like a second class citizen. Then most landlords wont rent to me. I still have hope.
It's not just black families. If you are a first generation immigrant it is a similar struggle of starting with nothing and needing to contribute towards helping your family. However, it can be done. I've done it myself as have several other friends. Seeing who gets hired in the corporate world, the bar isn't that high. The best way to get in is through networking or be willing to move to places where other people don't want to go.
I would 100% want to see this type of video as well. As an almost 23 year old, who does have savings, but it's so expensive to find a home where I live. I just want to see where and how to manage something like house buying. It's a scary subject for me. I don't have my family to fall back on (except where to sleep if I need it). My mother is not planning on leaving her house for generations. So I do want something secure and stable. I so wish they would educate us about this stuff in high school. Except they don't want us to know it all by the age of 18.
@@sfessaha I wasnt sure about the experiences of people of other races so I kind of spoke to the black side but i agree it can be done. It's even tougher for immigrants who use all their saving to move abroad and pay their way through grad school for example. That means that you'll be out of school at around 28 with zero savings or very minimal at the very least. But like you said, it can be done and I'd love to hear more about such experiences
❤️Great info! We just bought our first home and closed in January before shit hit the fan with COVID- we live in NJ, bought the ugliest house on the most desired block(staying within our budget) and we are in the process of renovating and turning it into one of our dream homes... Demo starts next week now that construction is able to continue.. So excited💃🏾
The only downsides renting has been for my family is when the landlord won’t fix things, but still demand $$$$ in rent when there is a hole in the ceiling. sometimes rent prices are way too high when you want to/need to move. I also live in state that is pro-landlord, so it doesn’t matter if the house is falling apart, rent needs to paid even if the landlord won’t fix anything.
Im 25 and Ive just moved out of my parents into a housing association 1 bed flat on the outskirts of London. To be honest, I'd rather this than the stress of the cons that you mentioned in the video especially because I'd have the opportunity to own a percentage after a year. I do think the pressure of owning a home is overwhelming and if your lucky enough to do so... great for you.
Is this one of the London Living Rent properties by any chance? I've just moved in to a new property with housing association and also have the option to buy a share or all of the property. This works for me right now, I wouldve bought a house earlier in life if I could but I appreciate that I'm not paying private rent as its extortionate!!
@@collettecollettec thissssss! Yess but I'm just on the out skirts of south london. Private rent is extortionate! Congratulations to you, how you finding it?
I have been loving 🥰 these videos Patricia, keep them coming. Who else can’t get enough? Purchasing a home is such an important milestone and I highly recommend anyone planning to do so in the near future to get your finances aligned, the process can be tedious but so worth it in the end. My hubby and I rented for years and saved quite a bit before purchasing our dream home and we haven’t looked back since. Work hard, save hard, and go after your dreams. Thanks for sharing all of your knowledge 👑.
Great video! My partner and I are 23, and we bought our first apartment in December 2019 (2 bed , 2 bath) for £185,000 ... currently valued at £230,000 - £250,000 ... bought it while the market was low because of brexit ... hope to stay here 5 years & I hope we can sell for a profit xx
Great video, but please fact check! As of June 2019, it’s illegal for letting agents to charge tenant fees (with some exceptions), so any holding deposit paid to secure a property will go towards your first month’s rent. Additionally, for those saying you can just rent your property out if you want to move, please bear in mind that there is a lot of risk involved in becoming a landlord and also check for mortgage restrictions. Really interesting insight overall though!
Great point. Alot of homeowners who rent do so independently with no landlord insurance to cover their legal fees if the worst happens. Google exist. It is 10x times easier to research then before and use forums to ask for other experiences. As everyones is different
Great information. I notice that a lot of the comments from home owners say that owning a home does not limit your flexibility and that you can rent it out. Home ownership does limit your flexibility. It is not that easy to just rent your home, especially in the states and the DMV metropolitan area (DC, MD,VA). In this area the majority of people who rent from individual landlords do so because they have bad credit. Continued blessings Patricia.
Hi, your videos are quite intriguing! I have been watching your videos for a good minute and I have to say that I have always wanted to start a youtube channel in personal finance. I wasn't able to do that for a long time because I was at school for an MBA Degree. After I graduated in March this year, I decided to start the channel and it's actually growing. Thank you for your inspiration. I look forward to enjoying more videos from you and growing with the RUclips community.
Can I just say that you’re motivating me to finally put action behind my dreams and ideas? You educate us on so many different topics and I’m so grateful for you sharing your knowledge in the funnest way - thank you ❤️
Renting it out is not easy peasy. Rental management companies charge money for their services. Plus you still have to pay the upkeep on the house and you pay taxes on rent that you make. If you are not wealthy (meaning you bought the house cash and are not paying much interest and can afford to pay someone to fix things when they break and maintain the house between renters) it's not a great investment.
@@lindajanet while you can rent the property out while living abroad, you need to let the lender know which could be higher interest rate and repayments. Also you need to be maintaining the property while your abroad as well which can lead to difficulties. but agree with you it is doable
Nah I’m over paying rent lol two years later the total i spent after calculating ...40k I done spent on rent!! And I own nothing after all that lmao 😂 I’m ready to own baby 🤦🏾♀️
Go for it you have nothing to lose.Just be mentally and finanacially prepared to make sacrifices.You're used to paying rent so the transition should go smooth.Just get familiar with doing your own maintenance.
@@NathanielEssex either way..you still don't own your house..the bank does. If you don't pay - all your $ goes down ghe drain..you're foreclosed..anyway, to each their own whether they rent or aiming to "own" ..no one is better than the other as long as you have a roof over your head..I speak from both sides..
@@CharleneB178 I used to rent. Did it for years and when I moved out I got nothing. Never again. At least with a mortgage if things get tight you can sell or rent it out. If you're looking short term then no, but my black grandparents purchased property in the 40's 50's and 60's that we paid off free and clear. My best friend brought her home 10 years ago for 200k. Now it's worth 3 times that. You just need to be smart and focused dealing with real estate.
@@NathanielEssex short term no..like you said..my family own land in SC..no lease, rent "own" it depends on what you want..then, I know folk who lost their homes..and $ ..foreclosed.. having to start over..renting..you get your deposit back- that's it. Either way ..you have to have $$..warer, gas, electric, property tax, maintaining the landcape..garbage..mortgage- with a house. If you can afford it without constantly refinancing- good. Nothing is wrong with having a house..I live in NYC..I'm not rushing to buy a house hrre at all. One day out of state..when I have more $ to put on a down payment..less mortgage😉
There are so many variables its hard to generalize. While it's correct that if you are young and want to move around its not great to be tied down, in the same breath it could be the best time to buy so that once you are in your 30's your mortgage is paid off and you can either use it for your family or sell it for profit.
but it's also bold to assume we'll all make it to our 30's lol tomorrow is never promised and i'd rather spend my 20s traveling and exploring instead of being stuck somewhere so that I could *possibly* enjoy my 30s.
Your mortgage is paid off in your 30s? What? even if you bought at 18 years old (where do you get a down payment at 18 unless your parents are wealthy?) how would it be paid off in full in your 30s? You must have a SICK job right out of highschool to afford to pay off a 25 or 30 year mortgage in 20 years.
Hi Patricia! I'm 23 and a home owner. I purchased my home in Sept 2019 which is a new build and I'm the first buyer of this property. Currently, I am renting out 2/4 bedrooms to friends and living in the master. With the economic turmoil right now, working at home, and both my roommates moving out soon, I've been contemplating what my next move should be. The problem is I never wanted to settle down, I just saw this as a great opportunity due to city location and how much I was paying for rent in relation to what my mortgage would be. Not going to lie, this video kind of made me nervous haha. I want to move around right now, because I'm working from home, but I also need to make sure I can find a family to rent my place out. I guess, do you think it would be a poor choice to pay a rent somewhere else, while I rent out my house to a family? Sorry this is a lot but I value your opinion and think you're a very inspirational businesswoman. Thanks :)
In case she hasn't seen your message. It's totally okay to rent your house out, make sure your tenants cover your mortgage in rental costs. That's what we've done, our house is in the UK and we've just move to South Africa from the Middle East. I think it's brilliant to own a property at your age! Well done 🌠
@carine nazha. You have to make the best decision for you, one that you can live with. But here's something to think about. If you are able to get someone to rent your house for more than your mortgage and ALL other property expenses, you could create cash flow. Then you would have the freedom to live/rent wherever you want to. You should save all the extra cash flow in an account designated for future maintenance and repairs for the house and basically have the asset paying for itself. And should the value increase, you will have the same growth/appreciation as any homeowner in the same area. I'm not sure how things work in UK for taxes and rental properties, but in the US, owning rental property is considered a business and subject to tax advantages/write-offs for all expenses. Unlike the rental property, primary home ownership does not get the same tax advantages. Renting under these conditions can create the freedom and flexibility to live the life you desire.
You can absolutely rent out your place and pay rent somewhere or travel. The house will always be yours. It's worth checking the terms of your mortgage tho first.
You should definitely talk to a financial advisor as well. If you have the financial means to pay for rent in two places at once (just in cause your tenants don’t move in for a while or something like covid happens and they all lose their jobs and can’t afford rent). It also depends on why you want to move and what you would gain from moving. But yeah, talk to a financial expert who can look over your numbers with you.
the way she talks is just so mesmerizing I just love hearing her talk and honestly she can talk to me all day and i would prob just be like "You're so beautiful"
In us the rental options tend to be apartments and townhouses. If you want to get a single family home without shared walls and more privacy it can be hard to find that as a renter. There is also a sense of control as a home owner, your not at the whims of a landlord for when they want to raise the rent, make changes to the property, or even sell it
This was SO informative. I think we often get caught up in the idea of having something to show for our wealth. I've always been taught that buying is better than renting, but I never thought about how often I would want to move.
yess in Romania everybody is a homeowner because it doesn't cost a lot and also because our parents and grandparents leave us lands and houses all over. Also many people work abroad for a couple of years for way higher salaries, then they buy some land and build a house.
You are sooo in your purpose with this channel !!! Do you realize how helpful and inspiring you are?! Thank you for the work you put in. Love and abundance over your life and your family ❤️
what would you consider short term for renting? Im thinking about it but not sure if people mean renting for 2 years or 6 months when they say “short term”
Getting on the property ladder is tough especially on a low income , for some unfortunately renting is the only option . Property ownership exists for banks! 🥴but in the long term we all seek security and stability in a home for ourselves it’s a real commitment .
You are on a roll and so very inspiring! I am finishing my homework, (went back to college for computer science at age 30), and I have 4 pre-filmed videos for my RUclips channel and IGTV! I'm determined to be consistent in all that I do and you encourage that to your fans! 💜 #blackgirlmagic
I'm of the opinion that one should have "have a place to rest your head", meaning it would be ideal to own a home somewhere (I.e. your home county). It can be something small and "affordable". You can live globally, but you know that in case anything happens you have somewhere to run back to. That's what I'm working towards.
This been really insightful, which is something that I’m beginning to understand the more I look into it. Home ownership isn’t for everyone. I’ve been begging my mum to buy or the two of us the current house we live in. She said it’s better for her to rent and use the rest of money for something else. And she’s not the only one, theres a lot of people who have the money to get mortgages but choices to leave in council houses or rent because they would rather they money go to other investments and I don’t blame them. I believe home ownership is more effective when you first rent it out, where you can make a lot of money from it. Which can possibly result in you getting a second mortgage that you can reside in.
This was great. I’m 24 and a graduate student. I’ve been obsessing about buying a house instead of renting but this made me consider the fact that I don’t wanna be tied down for the next 5years. If I get a job in another city I wanna be able to move and pursue it. Thanks for the video Patricia :)
I needed this validation. My spouse & I are young (in our 20's) with a child & will be expanding out family here soon. We liked the idea of renting at first for the simple fact that we know that we weren't fully tied to being in one spot for a while due to our jobs fluctuating. However, since our son was born, things have changed. We want a little more stability as far as a long term stay. We don't want to have to keep moving every 1 to 2 years when the rent gets to be too much. We don't want to pack up everything & go with kids. So, owning a home seems for feasible for us given what we want & need. We more than likely will be jn this home for a while. It's a 2020 new build so we have great bones to do whatever we want to it in the future without worrying in the next 4 years about replacing a water heater or fixing a gas leak. Personally, believe it'll pay off in the long run!
I own a home (unit)! I bought it in 2017 and in january of 2019 moved to the UK and then to another australian city and by the time I get back next march, I will have been away from it for two years. a lot of what you're saying makes sense BUT you can always rent your house out while your gone which may not recuperate all of the costs, but considering I don't pay rent where I am now (I live at work), it has worked out! I think this video is a good resource but is definitely not completely thorough - life moves fast and there are lots of things that can make a difference.
2020 is unlike any other year. I would suggest for any current buyers to wait. The market will drop - it was already going to drop even before COVID-19 hit. You’ll be able to negotiate so much more in a few months!
I bought a house with my partner when I was 23 and we own it 50/50. We've now just separated and will have to sell it. The house has gone up in value so I have made a bit of money on it but I won't be able to afford to buy on my own for a while now so I'm looking into renting but it feels like I'm going backwards or failing :( I think there's so much pressure and emphasis to own a house, this video really helped.
I'd love to see a video about being a landlord and everything that comes with it, what do you need to do, how do you sort out contracts with tenants etc, my goal is to own student houses and raise the standards for student accommodation.
Lets not forget that Sharon’s 72K is not recoverable i.e. it’s gone gone. Whereas Michelle‘s „costs“ are an investment „house“ and are recoverable (more likely than not). On another note if one wants to move these days, they still can and rent out the property whilst making use of property management companies out there, that make sure that rent is paid and every broken thing is fixed :-). Plus as long as you are living under a "roof" its either rent or mortgage till death. But the difference is with the later you leave a house behind #generationalwealth
Exactly, provided that the house isn’t going down in value, Michelle when sells will get her deposit back as well as the monthly payments she has put away towards the mortgage every month (minus the interest)
Another thing to consider is opportunity cost. The homeowner saved for years (probably) for the deposit. The renter could have invested that in a low risk investment (such as an index fund with 8% historical return). Each person's situation and goals are different, so renting or owning can be good.
If your in Western Australia the government is currently giving out grants to get people in their first home 15K first home owners grant, plus 25K federal government HomeBuilder grant plus the state government 20K wich is a total of $60 off your home and land package. (must earn under 200K/y) my partner was just given pre approval so now we just have our fingers crossed for the bank to say 100% yes
Loving this channel! My partner and I are currently looking at houses. We are first time buyers, however with everything happening I’m now worried it’s not a good time to buy. So much conflicting information out there. I suppose you have to do what is best for your situation like you have stated. I’m in my late 20’s and wish there had been more channels like this years ago. Very informative, they need to teach this in schools. Well done Patricia and thank you!
When you talk about the value of selling a house as a long term investment it is worth considering the inflation and how much this plays a part in the increase in price.
Guys please. Buy if you want to buy then rent if you want to rent the choice is yours. Her advice is heads up to look what to look for not necessarily will come true for you. She’s giving you facts from her point of view. She’s not trying to put you off. It’s only heads up. You’re fine.
Home ownership is the long term goal for me. I see more investment in owning than renting. I’ve rented as a student in my adult years and I cant wait to be able to afford a home of my own
I think the key thing from this video is not to go buying property thinking it will get you money, and instead look at other ways of making your money generate more money for you. I would love to see a video on investing, not just talking about the types, but actually showing people how to go about it with basic amounts of money starting at 1000£ for example.
I love this sooo much.... I've had so much pressure from my parents on aiming to buy a house even though I know my career will have me moving around. It's nice to see everything being put into perspective and helping me know I'm not making the wrong choice in choosing to rent after all.
Let me illustrate something I believe was overlooked in the stats you provided. Sharon spent £72,000 after 5 years and since she was renting that money is gone completely. Michelle spent £120,280 after 5 years which rightly so is £48,280 more than Sharon however Michelle was paying off some of her mortgage over the 5 year period. If Michelle sold the property for the same price 5 years later at £300,000 she would get her £30,000 deposit and only owe the bank £227,580 not the original £270,000 she borrowed therefore £42,420 is not counted for in the stats you show. The difference in figure is actually £5860 (maybe £10,000 if you add fees to sell). So a more accurate comparison would be to say Sharon spent £72,000 and Michelle spent £82,860. Additionally Michelle still has £30,000 deposit and Sharon has £0 so Michelle actually spent £52,860 to Sharons £72,000 meaning Michelle was in fact better off by £19,140. As the capital on the mortgage is reduced Michelle will be better off by around £10,000 each year thereafter 5 compared to Sharon if she were continue to rent. Don't get it twisted though renting can still be a power move and home ownership is often negative to your finances over a short term span especially with schemes such as Shared Ownership..
We just bought a home in Berlin, 🇩🇪! Interestingly, Berlin homeownership is much lower than the rest of Germany, only 18% of people but vs rent. So cool to see this video! ✌️😁
Buying will be extremely difficult for me at the moment especially when you have dependents and responsibilities that they come with but I have chosen to invest in other areas.
This is a great detailed video, and a discussion that I'm glad is being had. As a millennial and home owner, I don't think my home has limited me from exploring or taking other opportunities. If the opportunity is right (travel, or relocation for work) I'll just rent out some rooms in the house or the entire house. Owning a home provided my first source of passive income, so I can't see myself going back to the renting life.
@@xanish lease holding is you don't own the land the house is on. So u "buy" the house but only own the house for X amount of years. Depends on the paper work. Can be 100years. And if u wanna buy the land it's another £X00,000 amount paid
@@xanish Leasehold means you only have the legal right to occupy the property you purchased for a fixed period of time. You hold the lease of that unit within a building instead of the person who owns the building - unit being a flat or apartment as they say in USA. You are responsible for inside your unit and the freeholder/owner deals with the external and communal stairs of the building In effect, being a leaseholder in UK you are renting a flat/apartment within a building/property that has been split into units (flat/apartment) from the freeholder (person who owns the property) for XXXX number of lease years A UK lease come in different year ranges ie 10yr or 999yrs Common leases are 125yrs Problem arises the moment you move in because the lease clock starts ticking down to 0 years. Once reaches 0 means you give back the unit to the owner of the building. However, there is an option to renew the lease before it reaches 0 and then the leasing clock starts all over again. The race is then on to sell the unit BEFORE the lease reaches 80 years. At this point mortgage lenders consider the length of a lease will adversely affect the value of a property and its ‘mortgageability’. Some lenders may lend, not all will. To help out a new buyer when the lease is less than 90 to 80yrs, a seller gets a Section 42 (a formal request from a leaseholder to the freeholder to extend their lease on a property) An extension can be refused and if no Section 42 was sold with the property then as a legal occupier of the unit, you have to wait 24mths before applying for the Section yourself. Knowing this, is the reason when you see a ridiculously low price for a UK flat on sale, proceed with caution.
Thank u soo much for this vital information. A property is not an Asset until u r making money from it. When ur still paying rent it becomes a liability.This really is Food for thought🙏🏽
Tbh I disagree. I think that buying is far better than renting. In renting all you do is *lose* money and make someone else richer. You don't have to buy right away, but eventually you should. You can also rent your spare bedroom/s to make good money.
Sorry but who buys a house and wants to move after 5 years? 🤷🏼♀️ Also in the whole video you never mentioned that you can also rent your property? There's so many options not just selling and you can totally move to another country if you are a home owner! I have many friends who have done just that, and they know they have a house to return to if they want. Please stop scaring people saying you're stuck if you own a house!
In London there are schemes (help to buy, shared ownership) that most people would need to use to be able to afford to buy. But you can't rent your house out if you use these schemes, they don't want buy-to-let landlords to use the schemes.
Renting is really hard to deal with, and the owner of the property can always up and sell it from under you, rip you off, raise rent, or invade your privacy. The happiness and freedom factor of owning a home has been life changing. We purchased a home below our means so we can comfortably pay for it and now we have started focusing on investing in the stock market.
I’ve been thinking about these two options. I’m leaning into renting for now and saving for a home deposit for later when I’m more sure if where I want to live. Thank for the info!
I just discovered Patricia, as I've been investing in the stock market this year and learning more about financial planning! Man, this girl is good! I love the way she talks not just about money, but about global themes, certain tidbids that could apply to various people, psychology, and just straight out brutal, intellectual comedy. I'm loving learning how to adult/$$$!! Thanks!
Am I missing something, is there not some fundamental maths wrong here, the deposit and capital payment aren't really costs because unless the house value has gone down then you will get that return when you sell? So ((stamp duty + buying fees + interest on loan + maintenance) - appreciation) is the actual cost, which will be considerably less than renting in most cases over a 5 year period, if you were to spend considerable money on the house you would also see a significant return on that investment ie. new kitchen. It is important to consider other investment opportunities with that money I will admit. But historically houses have been a lucrative investment for many and any investment can go up or down so there is not safe haven to see that return, housing is as good as any. It's also worth considering that most people are terrible at saving, paying a mortgage is a good way to force savings.
I was thinking exactly the same?! The numbers shown on the mortgage side were a little bit misleading and made to look like a sum of money which you wouldn’t get back. It’s true that house prices can go down in value but that is uncommon, so the deposit you put into the house and the monthly mortgage payments minus the interest - you get back when you sell (plus hopefully profit). If you never sell, it’s just your home where your monthly payments are likely smaller than rent for an equivalent size property in the same area, and you can live there in retirement by which point you’d hopefully be mortgage free
The numbers are definitely convenient and nicely direct the narrative. Renter deposits aren't guaranteed to be returned anyway - if you trash someone's house/break things, they can deduct money from you. I don't think she included stamp duty in her costs though, FTB don't pay stamp duty un properties up to the value of £300K
So true..before buying my house I had no problem spending 1000 -5000 Euros in things like vacations or furnitures. After purchasing our dream house my biggest satisfaction comes from buying things secondhand or creating a good time at home or outdoors with my family. DIY projects and garden work are the best right now, if you ask me.
The "forced savings" thing is really the gist. You could rent and use the extra money to invest in the stock market, and in a lot of cases, actually make more in the long term (like Pat said, the stock market tripled from 2009-2019 where as house prices only doubled). The issue is, most people just spend the extra money they have, not invest it. Where I live, a comparable condo to buy would cost me around $1000 CAD (577 pounds, 750 USD) MORE a month than the rent I pay for my apartment. If I invest that money in the stock market, I will come out ahead in the long run, and not have to put up with the stress of owning. Personally, my plan is to keep investing with all that extra money I save each month, until I can just buy a home outright (or with a teeny tiny little mortgage) one day.
Love seeing a black woman speak on finances. It’s representation I need
And so eloquently
Common, Black women the world over are accomplished
Pls stop thus bug eye comnents
@@emiliarose18 representation matters, and you are crazy if you think otherwise. I don't think their was any malice behind that comment.
@@TumbleTyme757 wow insults already?
Ahbeg carry go
Yes! We love to see it
Me watching this video with $4.50 in my account
I’m dead 😅😅😂😂
Lol
Rome wasn’t built in a day
We will get there. Watching the video is the 1st step 🙂. I have $30 tho lol
OMG 😂😂😂😂 don't worry God is good.
Can you please please do a video on young people moving out from home, not for uni but after finishing studying and renting wether it's alone or with friends or what to know before and when you're ready to move out both maturity, financially and reasons why you want to move out, people in London/ outskirts of London and your experience first moving out from home
Nice idea, will have a think and see what I can do !
Yess such a good idea, that would be so interesting to learn more bout.
YESSS OMG WHAT A GOOD IDEA
This would be very useful!
@@The_Break oh plz this is my current situation 😩😂
The problem is when you get old. How can someone on a pension pay 1,200 a month in their 70s. This is the issue for me. Cant be broke in old age. Also you can pass property on to your children. Generational wealth is very important.
True indeed
HOW in the word does it work where you're from?
Where I am my family that has retired and their pension is an average of the last 10 years they were employed, which tends to be the highest amount.
There is also a "grace period" for the last 5 of those 10 years and the company can't sack you in that time because of your age.
Rather than investing in property you can invest in other assets like the share market, I’d way rather give my kids a huge share portfolio than a property they will lumbered down with having to sell (& pay a lot of money to sell)
@@Daaaanielle I'm from the UK. (I'm not a pension expert so please excuse me if this isn't 100% correct) but final salary pensions are extremely rare or pretty much extinct. Instead you and your employer both contribute. Whilst it is enough to survive from my understanding I doubt that many people have a pension that is big enough for such a high rent.
@@bethjenkinson3814 wow beth that sounds like an amazing idea!
I would love to see a comparison of buying vs renting a car
Buying makes no sense. In USA everyone is leasing
You should always buy, no need to buy a new car though, buy one that is a couple years old, keep it for around 10 years. Cars are a ridiculous waste of money (tax, insurance, damages). Unless you are loaded.
If you can afford a good car, one that will last a while, get it
I'm not an expert though, but surrounded by a number of wealthy people, you don't see wealthy people change their car that often.
its always best to buy a car, renting only for short term cause it adds up quick
@@DariaIvanovaTV because it's more profitable for the dealer. Not because it's better.
Sure there are many cars where they are worth financing. Mainly brand new cars (new model/refresh) as they have no history. However, if you do your research and look for more reliable vehicles and then filter within that list, you are FAR better buying that car outright.
I have paid cash for my last two cars and I never want to finance a car again...I got it for almost $10,000 from a private seller a dealer would have charged around $15,000 plus the interest I would have been paying...I am stress and worry free because I own it...then again I’m a person that doesn’t like debt...I pay all my credit cards in full before the due date...interest is a waste of money
This is fantastic content. I honestly feel like managing your finances should be a compulsory subject in secondary school. A lot of us go out into the “real world” with little to no clue about how these things work.
It should really be taught in school... as well as reading & understanding (negotiating) documents/contracts, a lot of people have made huge mistakes because of this.
At this point, I'm sure it's on purpose
Sarah Jayne Scott or maybe the government expects your parents to teach you these things. I’m going to teach my kids all these things. I’m already teaching my 10yr old about savings and good and bad credit.
a subject about money is being created in New Zealand for high school students which is cool. It will also be worth a few credits.
True.
I think another benefit of home ownership is prevention of old age poverty. Old age poverty is on the rise and pensions are not stretching to cover current rent rates at least in the UK. At least if you own, if even if you let it go to shit like a lot of old people do or downsize to something a lot more affordable it’s still a home and combined with waiting lists on council homes being years for thousands of people, it makes it more of a risk. It’s sometimes about having a home than not investing into something at all.
Sadly lots of older people end up losing their home that they’ve worked so hard for due to tax liens
Absolutely agree Layla. Also here in the UK we dont much renters rights compared to other countries like Germany. Can you imagine being older and then having to move every couple of years because your landlord wants to sell etc. Also with the current lack of investment in council housing I'm not sure it will really exist in the same way as we age.
@@fungirl0123456
Totally agree with you and Layla. Renters don't have much rights here and the price of a London rental varies as much as the standard of property.
I don't really want to be paying money for something that I can not decorate, will never own and will never really feel like mine, so buying is my personal preference... even though I'm not in a position to do it at the moment.
Landlords are, by definition sub human. Well, most are. Others just unpleasant chancers and low tier trash with aspirations to hold power of other people. If your well being essentially rests in the hands landlord then expect to die in the streets.
@Lou Lou the same thing is happening to my grandma too. The council is us use all of her own saved money for day time carers etc and offering very little support. It's a huge concern because the costs are so expensive and we may run out of money soon.
Some points you missed:
- Buying doesn't necessarily mean being tied to living in that property. If you want to move, you can rent it out to tenants. Plenty of people do this, but of course there are associated costs and legal obligations.
- You can make money from the property you currently live in by renting a spare room out to a lodger - this applies to both renters and buyers, but renters will need the permission of their landlord, which may not be granted.
- As a rule of thumb, the sooner you buy, the more money you will save on the property purchase price, and the sooner you will begin building equity.
- The sooner you buy, the sooner you will be done paying off your mortgage (and the sooner you will be done paying for housing altogether)
- If you intend to rent for the rest of your life you will need to put a LOT of money into your pension (unless you have a short life expectancy or can rely on welfare benefits - but to meet the income threshold for benefits you'd need to be living on the breadline)
- If you buy leasehold, commonhold, or even some kinds of freehold, you will be liable for service charges and major works costs. In older blocks these can be extortionate - normally 10k-30k, but I've seen them as high as 150k for one batch of works. No flats are sold as freehold so you need to factor service charges into your pension plans as well.
I wish this comment had more likes. You make some very important points.
@@FreakyBo0o thank you! I used to work as an adviser for leaseholders so have a little bit of knowledge on the ins and outs of property ownership despite being a renter myself.
This is exactly what I thought and was waiting for her to mention.
Rental comes with a huge risks.
As a homeowner who has rented out spare room to a lodger, a huge headache. As a homeowner who is now considering renting out the entire home to tenants, very stressful-- a headache. I am still responsible for any repairs due to wear and tear. I am still responsible for the general well-being of the property and that's not even making a profit, that's breaking even w/ using the rent to cover the mortgage.
My two cents: not everything in life has to be an investment or be part of some hustle goal. Sometimes paying a bit extra for something just brings happiness and security, and it's worth spending money on your quality of life (even if you won't make money off that decision now or in the future).
It's fine to rent if you want a more carefree and flexible lifestyle. That might suit you best in your current state. Owning a house is hard work and a huge commitment! Not something to rush into for the sake of saving money on rent.
I never looked at it that way, I always felt bad because I'm in my 30's and I don't own a home. People always tell me your paying someone else's mortgage but I don't feel financially secure enough to buy a home yet.
Depends, if you born of privilege, then maybe yes everything is not an investment. But if you not then everything is a hustle and investment and Bill gates dreams.
@@lovingme1st973 I'm not 30 but I don't own my own house.
I would like to in the near future some day.
However, please don't put unnecessary pressure on yourself. Do what you can and makes you comfortable and happy and what fits your budget.
LovingMe1st Omg same!!! It has become the topic of conversation with all my relatives always asking so “when are you going to buy a home” and I just stand there looking puzzled 😕
@@wirelesschick123 Are you prepared to buy a home? Can you afford it right now? Are your relatives making u feel bad for not having your own place. My encouragement again, don't allow the pressure to get to you.
I feel the same at times, however Rome wasn't built in one day & u can only do what you can.
I'll say becoming a home owner in my early 20's was the best financial decision I've ever made.
May I ask how you went about it?
I’m 19 and I’m actually signing off on a piece of land tomorrow morning.
The reason why I’m doing it so young is because in Australia, we currently have a lot of grants that allow first home buyers to save $55K when building a home.
I have researched my area; it is a two minute drive from the major highway, close to both a primary and secondary high school, close to one of the major office region, close to many amenities, and a new train station is to be built a ten minute walk away from the property in three years time.
Can I ask, did you rent out your property or sell it?
And what do you recommend I do?
Same
Agreed. The stability is best
@@abbeybarton7281 Wow, I didn't get notifications about the comment until now. I hope it went well on your end! I finished my BSc. undergrad during The Great Recession (2012) so there were limited job prospects (great timing eh). I was lucky enough to move back in with parents. after my second year after I moved back in I realized the quickest way to grow my net worth was through owning real estate. I took the following year to save a 5% down payment which is allowed in Canada for first time buyers. I bought a 1-bedroom condo in central location and was 10 minutes from work and the city. Over the next 4 years that area's home prices essentially doubled due to infrastructure developments and the ideal location with good schools and proximity to the city. I didn't rent it out as it was my primary residence and only had 1 bedroom. I recently sold that condo for a nice profit and moved to a cheaper area 1 hour away. I'm glad I made the move this year. I have nearly double the space, a lower cost of living and a nice lake view. They're building a new train station in my new area which should be completed next year. The new transit will probably help us both in terms of property value (sorry for the essay)!
I must say that is truth.. I wish my parents told me that in my 20's.
People who own houses aren't struggling with rent during this Covid season. For me owning a house is a solid retirement plan. Speaking from an African Context.
That's if the home is paid off. Plenty of ppl are still paying off their mortgage and lowing their jobs.
You can always move if you rent though. If you lose your job (like during Covid) you can always find a cheaper place to rent. You can't just step out on your mortgage. Yes, you might be able to defer your mortgage for 6 months, but what about after that? Or what if the prime rate goes up to a point where it is hard for you to make your mortgage.
People still have mortgages... most homes aren’t paid off lol
@Nomad Diaries In rural areas or urban areas? In urban areas there are mortgages. The homes are expensive so in my country people take loans and pay for a long period of time
@@TheSleepyBeautyCo exactly 😂😂😂😂😂😂
I'm 18 years old and I come from a modest family and I'm learning a lot of things from this channel bout finances. Thank you!
My retirement plan is to have none. I live my life right now. I don't wait until Im too old
Excellent, start young! You may want to check out the Budgetnista and join her Dream Catchers FB closed group. It focuses on credit, debt reduction, saving, investing, and financial literacy. Its changing lives. Stay blessed!!
I'm 18 and I'm doing the same, too. Wish you good luck! It's great to start at this age
This is great advice, I am definitely one of those people whose goal in my 20s was to buy a property which in South West London ain't cheap! But we did it and it's such a weight off our shoulders not to be renting anymore. I think remembering not to keep up with the Jones' is key, just because you can borrow a certain amount doesn't mean you need to take on all the debt. Don't take on a mortgage which is out of your means and cripple you if interest rates increase.
Could you do a video on the process? (Of course after baby is born! 💓)
@@michaelako3755 sure! If that would be interesting! thanks so much for checking out my channel x
I'm 21 and unfortunately I have to move out so I was thinking of renting for a while. Im in school and my boyfriend works as well as me. I hope to own a house by the time I'm 27 and finished with school and everything.
This is golden
Well home owner in Nigeria and Ghana is a whole completely different story. One time payment and it’s yours for life👌
Can Americans buy over there?
Well said sis. I tell people that their is nothing like credit card in Nigeria. You want anything, from a car to a house or anything, get your cash ready.
@@Msfrugalosity yes American can buy houses in Nigeria but with cash mainly.
In the Caribbean as well.
@@spiceygirl007 Thankfully many Caribbean countries ban Americans from buying any land/houses
I don’t think owning limits your mobility, you can always rent out and have the mortgage being paid for while you live somewhere else.
She can't give all the info to future competitors.
She has a point but renting is just for short term.
That’s not a given. You need to agree that with your lender.
100% I agree with you. You can always rent out your mortgage
In my country, you can't move for 5 years after buying. So mobility is limited short-term.
Not always, you may have HOA rental restrictions in US
I’m a proud homeowner. The key is buying a good property that does not take up too much of your monthly budget
I thought you didn’t own the home until you had the deed? Am I wrong?
I'm really proud of The break platform
I rented for 6 years whilst trying to save for my own property. We now pay £50 more a month each for literally twice the house size! It’s ridiculous. However saving for a deposit is SO DIFFICULT when you’re paying someone else’s off at the same time.
However DO NOT buy in 2020. I’ve heard so many stories of people having their mortgage applications denied due to the economy. It’s really sad because people are obviously also struggling to sell. Bloody ‘Rona
No first time buyers will need an even bigger deposit now. It won't affect people who are downsizing or people buying houses similar to the price their own home is , so same mortgage payments.
I also know people who are having house viewings whilst still obeying social distancing.
@Gigi gigi Go for it if you have a sizable deposit. All the best mortgages are off the market now, banks don't want 5% or even 10% sometimes. If you have the money you can grab a bargain but for anyone counting on 95% mortgages it's a no go :(
Jenny's Asmr Fun And Relaxing Videos Not true. I have an average credit score and this summer, I was able to get a deal with no down payment, no closing costs, and no PMI. My mortgage incl. taxes is nearly 300 less than my rent. I’m a first time home buyer as well. Just have to research and find a program that offers the most.
@@junetimefine2738 And just think the interest you can deduct at the end of every year on your taxes saving you more money.
It's a good idea to suggest that people should rent when you yourself own property that you rent out. Renting does pay for a landlord's lifestyle (no two ways about it, the aunties are correct, you are literally paying someone's mortgage!). Buying property can make you money in the short term (which is why people chose to flip properties), you just have to make sure it's a smart/calculated purchase. The comparison was nice, but it's not that straightforward and some of those costs/terms vary. For example, my mortgage on my first flat was a free product on a two year fixed rate and then after two years I was able to change the rate and pay roughly £100 less per month (rent pm is likely to go up, not down - very unlikely that it will be the same over a 5 year period). If you shop around you can definitely pay less than £1.5K on legal/surveying. If you own a home and want to up and move the country you can sell your house or convert it to a BTL and use the equity to buy another place or free yourself up to be able to rent. There's a reason why renting costs more than a mortgage per month (HMO rooms aside), you are paying for the property's repair works as a part of your rental payment. Out of that £1.2k per month the person renting 'Sharon' is paying, the landlord is probably paying half the amount in mortgage costs. As mentioned below, buying sets you up for retirement, helps with generational wealth and equity can be released for things that you want to do along the way. Also, for the people in the comments who are worried about buying property in the current situation: the property market is cyclical, when it goes down, it goes back up, so there never really is a 'bad' time to buy property. Now is the time to make a 'SMART' investment, but even if your investment isn't particularly smart right now, the chances are if you wait long enough, prices will rise and you'll be in positive equity. Sorry for the essay, I'm passionate about investing in property!
So what would you suggest to someone who is 24 on 20k a year?
I’m on an apprenticeship scheme at work that lasts 3 years, but may pay will incrementally increase during that time. Considering where I live to get a 1 bedroom flat it would cost between 180k and 270k.
@@abirose4875 I am also 24 and but actually buying a property, I worked out if me and my partner had stayed living with our parents instead of renting we would have enough for a house deposit over the past 3-4 years of renting about £28k. We are fortunate to be getting help with buying our house but moved back in with my parents for the past 18 months and between the two of us saved nearly £20k. So I would say if you can stay living with your parents do it and if you want to own a house in the end I would not start renting. That's my personal experience anyway.
Yes, that is very interesting she is encouraging people to rent now that she is a landlord. LOL
thanks for your imput too
Abi Rose it depends on what you’re willing to sacrifice. You can figure out how much (roughly) you can borrow using mortgage calculators. At 20k, banks usually would lend you 4.5x your salary (so that’s 90k, considering you haven’t built up debt and you have a reasonable credit score) then you’d have to find between 5-10k for a deposit. For me, being able to get on the property ladder meant moving half an hour away from where I grew up.
Loving this video and only 20 seconds in!
Patricia gave me the push to start my RUclips Channel she said "You don't have to be great to start but you have to start to be great! " Thank you Patricia for helping me realize my passion 🙌🏾🙌🏾🙌🏾
Awesome! Love to hear it!
Can't believe you replied! Why am I getting emotional? Thank you for continuing to inspire all of us young black women with big dreams!!! BIG LOVE 🧡💛💚💙♥️💜
Just watched your brownie video, your meme edits are jokessss made it super enjoyable to watch 👏🏻 I’ve known about the Betty Crocker hack for a while but I’m out here using a bucket of vegetable oil so the Fanta trick is gonna save my waist haha 🙈
@@sophlaney THANK YOU SO SO MUCH THAT'S MEANS THE WORLD TO ME 😊😊😊
OOooooO we just started our RUclips channel a month ago! Heres to both of us seeing success! P.S. just watched one of your videos😂 Subbed! Love the energy girl !
Love this and it’s exactly what I’ve been trying to explain to people who feel sorry for me that I’m a renter in SE London. I used to be a home owner in Scotland, sold my flat (which was a constant money drain) for a profit and now I’m enjoying the freedom of being able to live anywhere I want.
The difference is that when you buy that 1000 per month goes to yourself, in the case of the renting that 1000 goes to someone else
Most goes to your bank (interest). When you rent, most of it goes to the landlords bank (interest). I’m a landlord and the rent we receive doesn’t even cover the expenses we pay the bank and such.
@@amberpaul4245 It should do, so maybe you've miscalculated somewhere, aren't charging enough rent or have an unsuitable mortgage product (I'm assuming your mortgage is a BTL one and is interest only?) Yield can be calculated before you purchase a property using comparable data. If the yield on a property isn't high enough, then you shouldn't have bought it as a BTL. Maybe you should speak to a financial advisor if you haven't already done so, as they can help you get a better rate etc. Rental properties are supposed to make you money not cause you to lose it!
Ideally that money would be reinvested elsewhere
@@WhenLoveisProjected In some markets you can only get so much rent. For example, in London studios rent for about £1k to £1.5k but they are very expensive to buy (usually around £300 to £350k), which would be a mortgage of about the same to rent out.
@@kotare86 The mortgage would be interest only though on a BTL so the landlord mortgage payments could be around £500 per month on a building worth £300K depending on the length of the mortgage and the rate of course. That being said, as I mentioned in my comment, yield needs to be calculated before you purchase a BTL. If it isn't 7% (which is considered good) or higher, might be best to avoid. Edited to say: A residential repayment mortgage is likely to be around the £1K mark on a £300k property.
I feel so dumb because I normally watch you for hauls and other stuff and I just now decided to look at an economic video. Damn I should have done that a loooong time ago 🤣 Thank you queen this is the most I’ve ever learned honestly!
I feel like some people in the comments are missing the point, the stigma of renting shouldn't be there ESPECIALLY in the short term for young people who don't want to put down roots - its not to say they will never get a mortgage in their 30's/40's but both options are great, it just depends what you are doing at that point in your life!
Mortgages are dependent on age, as they are based on retirement. The younger you are, the longer the length of time you can stretch your mortgage payments over, so the more you will be able to borrow. If you wait 10 years, for example, property prices will have increased (as they roughly double every 10 years) and you won't be able to borrow as much. It's better to buy as young as possible IMO, otherwise you're selling yourself short. Also, it's a misconception that buying a property ties you down. I bought a flat, sold it after 2 years or so and then bought a house, which I have had for just over a year and I'm already looking to move on. I don't feel tied down at all! In that time, I started with 7K in my bank account and have built equity in my home of roughly 90K (depending on what I end up selling in for. In any case, you don't have to buy a property to live in, if you're not ready to move in, it can be a BTL investment. The rent you charge can cover the mortgage plus part of your own personal rental costs. Mortgages can work in the short term too.
I think it's also important to consider the SIZE of the home because some homes will cost more in fees than others.
I own my home but I purposely bought a place which was below my means, so I don't have to deal with paying major fees etc.
Don't buy a home to keep up with the Jones.
Yes, especially starting off
When you want to move and have a house, you can still move where ever you want and simply rent it out. The paid rent would cover the mortgage and you are free.
Exactly. I’m in the process of buying now knowing that I’ll probably have to relocate this year for work. I’m moving forward because friends have done the same and finding a professional property manager is easier than ever. There really are no pros to continuing to rent if you can afford to buy and at the end of the day, affordability is really the only deciding factor. This advice always doesn’t take into account all the programs available to first time home buyers. These things are very regionally specific. Take this with a grain of salt.
In the US, the owner is responsible for maintaining the property. If the renter complains about a broken window, you have to fix it. It can be difficult/expensive to maintain the property or doing check-up if you don't live in the same state/country anymore.
That's right 👍
That's what we've done, we rented our house out in the UK and now relocated to South Africa from the Middle East. Our UK tenants pay our mortgage and we get to live freely.
@@ellecooperco what about upkeeping maintenance?
Something else to keep in mind for those buying a home. Once home is paid for, you will still need to pay property taxes that are usually escrowed (Mine are approx. $1,600.00 per year in Louisiana in the U.S.), as well as insurance (Mine is just about $1,200.00 per year)...so even if you don't have a house note, you will have house related expenses....still less expensive than renting every month :)
Alot of ppl in the comments asking her to do videos she's already done. Scroll thru the channel!!!!
my boyfriend just bought a house and i just renewed my renting lease, this will be fun.
This is some chaotic energy that I support
@@akeylawallace4420 HAHAHAHA I'm dying
😂
Same here 😂😂😂😂😂😂😂 I feel less alone
Girl same.. let his wining commence
I am a realtor in US and I see that a lot that people are in so in rush to buy a house because of wrong message media sending that “you have to own a house and etc “, so that’s awesome that you are opening people eyes and showing that renting is not always such a bad option 👍🏻👍🏻👍🏻
Hi Patricia , just a little thank you to you . I’ve been renting for the last few years and to me it was dead money. thanks to your the break videos and budget template posted early this year, I decided to knuckle down with my savings this year to reach my house deposit goal. I aimed to have my deposit and savings for extras saved up by the end of 2021 but by using your budgeting tool I’m now on track to reach my goal by jan/feb 2021. I’ve saved more this year to date than I’d saved in the last four years combined .I’m single and in mid 20’s so it will be a huge achievement for me . I can’t wait to start viewing houses next Spring and get started on the property ladder!
It’s not dead money. It meant you had a house to live in 👏🏽
I love your videos. They are educative. However, could you do some videos for young people who dont have it all together at 24? I mean so many of us (especially in the black community) fall in the category of our parents dont have savings, assets or businesses left behind for us in terms of capital or investments. We have spent so much time in school hoping that it will be the way out for us. Meaning that we probably dont leave school until we are in our late 20s. Then that doesnt even guarantee us getting "good" jobs. So I know the usual start a business, create a website talk but that path isn't for everyone and for most the businesses may not flourish. So back to the drawing board we go. What advise do you have for an average Joe. We dont aspire to become wealthy or rich but have a sustainable and secure average life. Edit: and I forgot to add, most black people have the burden of being the first of everything in their family so you have the burden of supporting your family.
What i said i have two zero hour jobs soon to be one. A child and on benifits none of my large family are sucessfull, feel like a second class citizen. Then most landlords wont rent to me. I still have hope.
It's not just black families. If you are a first generation immigrant it is a similar struggle of starting with nothing and needing to contribute towards helping your family. However, it can be done. I've done it myself as have several other friends. Seeing who gets hired in the corporate world, the bar isn't that high. The best way to get in is through networking or be willing to move to places where other people don't want to go.
I would 100% want to see this type of video as well. As an almost 23 year old, who does have savings, but it's so expensive to find a home where I live. I just want to see where and how to manage something like house buying. It's a scary subject for me. I don't have my family to fall back on (except where to sleep if I need it). My mother is not planning on leaving her house for generations. So I do want something secure and stable. I so wish they would educate us about this stuff in high school. Except they don't want us to know it all by the age of 18.
@@sfessaha I wasnt sure about the experiences of people of other races so I kind of spoke to the black side but i agree it can be done. It's even tougher for immigrants who use all their saving to move abroad and pay their way through grad school for example. That means that you'll be out of school at around 28 with zero savings or very minimal at the very least. But like you said, it can be done and I'd love to hear more about such experiences
@@yazzybananas3106 I hear you! But you got this💪🏾
❤️Great info! We just bought our first home and closed in January before shit hit the fan with COVID- we live in NJ, bought the ugliest house on the most desired block(staying within our budget) and we are in the process of renovating and turning it into one of our dream homes... Demo starts next week now that construction is able to continue.. So excited💃🏾
The only downsides renting has been for my family is when the landlord won’t fix things, but still demand $$$$ in rent when there is a hole in the ceiling. sometimes rent prices are way too high when you want to/need to move. I also live in state that is pro-landlord, so it doesn’t matter if the house is falling apart, rent needs to paid even if the landlord won’t fix anything.
When you learn more about general life knowledge from Patricia than you ever did at school!🙌🏻
Im 25 and Ive just moved out of my parents into a housing association 1 bed flat on the outskirts of London. To be honest, I'd rather this than the stress of the cons that you mentioned in the video especially because I'd have the opportunity to own a percentage after a year. I do think the pressure of owning a home is overwhelming and if your lucky enough to do so... great for you.
Is this one of the London Living Rent properties by any chance? I've just moved in to a new property with housing association and also have the option to buy a share or all of the property.
This works for me right now, I wouldve bought a house earlier in life if I could but I appreciate that I'm not paying private rent as its extortionate!!
@@collettecollettec thissssss! Yess but I'm just on the out skirts of south london. Private rent is extortionate! Congratulations to you, how you finding it?
Love Is Everything x how did you manage to get something from the housing association and how long did it take?
I have been loving 🥰 these videos Patricia, keep them coming. Who else can’t get enough? Purchasing a home is such an important milestone and I highly recommend anyone planning to do so in the near future to get your finances aligned, the process can be tedious but so worth it in the end. My hubby and I rented for years and saved quite a bit before purchasing our dream home and we haven’t looked back since. Work hard, save hard, and go after your dreams. Thanks for sharing all of your knowledge 👑.
Great video!
My partner and I are 23, and we bought our first apartment in December 2019 (2 bed , 2 bath) for £185,000 ... currently valued at £230,000 - £250,000 ... bought it while the market was low because of brexit ... hope to stay here 5 years & I hope we can sell for a profit xx
Great video, but please fact check! As of June 2019, it’s illegal for letting agents to charge tenant fees (with some exceptions), so any holding deposit paid to secure a property will go towards your first month’s rent. Additionally, for those saying you can just rent your property out if you want to move, please bear in mind that there is a lot of risk involved in becoming a landlord and also check for mortgage restrictions. Really interesting insight overall though!
in the uk?
@@uwuseokie4123 Yes!
Great point. Alot of homeowners who rent do so independently with no landlord insurance to cover their legal fees if the worst happens. Google exist. It is 10x times easier to research then before and use forums to ask for other experiences. As everyones is different
Great information. I notice that a lot of the comments from home owners say that owning a home does not limit your flexibility and that you can rent it out. Home ownership does limit your flexibility. It is not that easy to just rent your home, especially in the states and the DMV metropolitan area (DC, MD,VA). In this area the majority of people who rent from individual landlords do so because they have bad credit. Continued blessings Patricia.
In the U.S. you get downpayment assistance. And mortgage is fixed 30 year.
Your roof and plumbing does not need to be fixed every year
Hi, your videos are quite intriguing! I have been watching your videos for a good minute and I have to say that I have always wanted to start a youtube channel in personal finance.
I wasn't able to do that for a long time because I was at school for an MBA Degree. After I graduated in March this year, I decided to start the channel and it's actually growing.
Thank you for your inspiration. I look forward to enjoying more videos from you and growing with the RUclips community.
Just subscribed to your channel 😊
Ché M. Thank you so much !
I subscribed to ur channel,bro.
Noel siba 🙏 asante sana
Lorpu Johnson thank you so much!
Can I just say that you’re motivating me to finally put action behind my dreams and ideas? You educate us on so many different topics and I’m so grateful for you sharing your knowledge in the funnest way - thank you ❤️
Also you can move if you own a home you can always rent it out to get the mortgage paid with a agent, whilst you live in another country.
Thank you for this comment, I was about to post the same. Guys you can live abroad even with a mortgage, I’m shocked at the inaccuracies of this video
Renting it out is not easy peasy. Rental management companies charge money for their services. Plus you still have to pay the upkeep on the house and you pay taxes on rent that you make. If you are not wealthy (meaning you bought the house cash and are not paying much interest and can afford to pay someone to fix things when they break and maintain the house between renters) it's not a great investment.
@@lindajanet while you can rent the property out while living abroad, you need to let the lender know which could be higher interest rate and repayments. Also you need to be maintaining the property while your abroad as well which can lead to difficulties. but agree with you it is doable
Yesss you can! But some of the U.K. schemes don’t allow for people to rent out their homes after they’ve bought them :/
You have to make your house make money for you. Rent out your basement add a guest house and rent it out
Underrated comment! we started a youtube channel filming out house buying journey and i may mention this comment in one of our vids!
dont want a stranger in my personal space thank you
The RUclipsr fr lol i wanna live with strangers I get an apartment
Nah I’m over paying rent lol two years later the total i spent after calculating ...40k I done spent on rent!! And I own nothing after all that lmao 😂 I’m ready to own baby 🤦🏾♀️
Michael Valente me can’t wait 🥰
Michael Valente Seriously! Unless you’re paying str8 out cash you’re technically still renting 🥴
Terri Hustles Unless you’re paying str8 out cash you’re technically still renting 🥴
Go for it you have nothing to lose.Just be mentally and finanacially prepared to make sacrifices.You're used to paying rent so the transition should go smooth.Just get familiar with doing your own maintenance.
You don't own anything baby🤣
Noone "owns" a house until you've paid that mortgage off..bank owns your house
Very true.
When you rent you're paying somebody else's mortgage, so there's that
@@NathanielEssex either way..you still don't own your house..the bank does. If you don't pay - all your $ goes down ghe drain..you're foreclosed..anyway, to each their own whether they rent or aiming to "own" ..no one is better than the other as long as you have a roof over your head..I speak from both sides..
@@CharleneB178 I used to rent. Did it for years and when I moved out I got nothing. Never again. At least with a mortgage if things get tight you can sell or rent it out. If you're looking short term then no, but my black grandparents purchased property in the 40's 50's and 60's that we paid off free and clear. My best friend brought her home 10 years ago for 200k. Now it's worth 3 times that. You just need to be smart and focused dealing with real estate.
@@NathanielEssex short term no..like you said..my family own land in SC..no lease, rent "own" it depends on what you want..then, I know folk who lost their homes..and $ ..foreclosed.. having to start over..renting..you get your deposit back- that's it. Either way ..you have to have $$..warer, gas, electric, property tax, maintaining the landcape..garbage..mortgage- with a house. If you can afford it without constantly refinancing- good. Nothing is wrong with having a house..I live in NYC..I'm not rushing to buy a house hrre at all. One day out of state..when I have more $ to put on a down payment..less mortgage😉
There are so many variables its hard to generalize. While it's correct that if you are young and want to move around its not great to be tied down, in the same breath it could be the best time to buy so that once you are in your 30's your mortgage is paid off and you can either use it for your family or sell it for profit.
but it's also bold to assume we'll all make it to our 30's lol tomorrow is never promised and i'd rather spend my 20s traveling and exploring instead of being stuck somewhere so that I could *possibly* enjoy my 30s.
Your mortgage is paid off in your 30s? What? even if you bought at 18 years old (where do you get a down payment at 18 unless your parents are wealthy?) how would it be paid off in full in your 30s? You must have a SICK job right out of highschool to afford to pay off a 25 or 30 year mortgage in 20 years.
Hi Patricia! I'm 23 and a home owner. I purchased my home in Sept 2019 which is a new build and I'm the first buyer of this property. Currently, I am renting out 2/4 bedrooms to friends and living in the master. With the economic turmoil right now, working at home, and both my roommates moving out soon, I've been contemplating what my next move should be. The problem is I never wanted to settle down, I just saw this as a great opportunity due to city location and how much I was paying for rent in relation to what my mortgage would be. Not going to lie, this video kind of made me nervous haha. I want to move around right now, because I'm working from home, but I also need to make sure I can find a family to rent my place out. I guess, do you think it would be a poor choice to pay a rent somewhere else, while I rent out my house to a family? Sorry this is a lot but I value your opinion and think you're a very inspirational businesswoman. Thanks :)
In case she hasn't seen your message. It's totally okay to rent your house out, make sure your tenants cover your mortgage in rental costs. That's what we've done, our house is in the UK and we've just move to South Africa from the Middle East.
I think it's brilliant to own a property at your age! Well done 🌠
@carine nazha. You have to make the best decision for you, one that you can live with. But here's something to think about.
If you are able to get someone to rent your house for more than your mortgage and ALL other property expenses, you could create cash flow. Then you would have the freedom to live/rent wherever you want to. You should save all the extra cash flow in an account designated for future maintenance and repairs for the house and basically have the asset paying for itself. And should the value increase, you will have the same growth/appreciation as any homeowner in the same area. I'm not sure how things work in UK for taxes and rental properties, but in the US, owning rental property is considered a business and subject to tax advantages/write-offs for all expenses. Unlike the rental property, primary home ownership does not get the same tax advantages. Renting under these conditions can create the freedom and flexibility to live the life you desire.
You can absolutely rent out your place and pay rent somewhere or travel. The house will always be yours. It's worth checking the terms of your mortgage tho first.
You should definitely talk to a financial advisor as well. If you have the financial means to pay for rent in two places at once (just in cause your tenants don’t move in for a while or something like covid happens and they all lose their jobs and can’t afford rent). It also depends on why you want to move and what you would gain from moving. But yeah, talk to a financial expert who can look over your numbers with you.
the way she talks is just so mesmerizing I just love hearing her talk and honestly she can talk to me all day and i would prob just be like "You're so beautiful"
In us the rental options tend to be apartments and townhouses. If you want to get a single family home without shared walls and more privacy it can be hard to find that as a renter. There is also a sense of control as a home owner, your not at the whims of a landlord for when they want to raise the rent, make changes to the property, or even sell it
This video gave me SOOO MUCH ENERGY, especially as a millennial, I'm 26 and feeling the PRESSURE to move into home ownership as quickly as possible
This was SO informative. I think we often get caught up in the idea of having something to show for our wealth. I've always been taught that buying is better than renting, but I never thought about how often I would want to move.
yess in Romania everybody is a homeowner because it doesn't cost a lot and also because our parents and grandparents leave us lands and houses all over. Also many people work abroad for a couple of years for way higher salaries, then they buy some land and build a house.
The teacher I don’t have at school thank you
You are sooo in your purpose with this channel !!! Do you realize how helpful and inspiring you are?! Thank you for the work you put in. Love and abundance over your life and your family ❤️
I think it is a matter of long term and short term. Owning is for long term. Renting is for short term.
what would you consider short term for renting? Im thinking about it but not sure if people mean renting for 2 years or 6 months when they say “short term”
Getting on the property ladder is tough especially on a low income , for some unfortunately renting is the only option . Property ownership exists for banks! 🥴but in the long term we all seek security and stability in a home for ourselves it’s a real commitment .
You are on a roll and so very inspiring! I am finishing my homework, (went back to college for computer science at age 30), and I have 4 pre-filmed videos for my RUclips channel and IGTV! I'm determined to be consistent in all that I do and you encourage that to your fans! 💜 #blackgirlmagic
Keep on rising
I'm of the opinion that one should have "have a place to rest your head", meaning it would be ideal to own a home somewhere (I.e. your home county). It can be something small and "affordable". You can live globally, but you know that in case anything happens you have somewhere to run back to.
That's what I'm working towards.
@@RaquelArraesactress that is a great plan!!!
@@RaquelArraesactress I subbed to your channel!!
I live in London and you inspire me. Thank you for being so honest about all of this.
This been really insightful, which is something that I’m beginning to understand the more I look into it.
Home ownership isn’t for everyone. I’ve been begging my mum to buy or the two of us the current house we live in. She said it’s better for her to rent and use the rest of money for something else. And she’s not the only one, theres a lot of people who have the money to get mortgages but choices to leave in council houses or rent because they would rather they money go to other investments and I don’t blame them.
I believe home ownership is more effective when you first rent it out, where you can make a lot of money from it. Which can possibly result in you getting a second mortgage that you can reside in.
Patricia ! Thank you following your purpose so that others -including myself- can step into ours ! This is CONTENT sis !
This was great. I’m 24 and a graduate student. I’ve been obsessing about buying a house instead of renting but this made me consider the fact that I don’t wanna be tied down for the next 5years. If I get a job in another city I wanna be able to move and pursue it. Thanks for the video Patricia :)
A goal that I've had for many many years is to own a property before my 30's
i don't usually comment on videos but i love this woman such a blessing
My boyfriend and I are renting because we were living at my parents and didn’t have enough to buy at the time 😊
Don’t remember asking
Finchy Don’t be rude, it’s not cute 🤮🤢🥴
Finchy a lot of people are sharing their experiences on here 😊 have a great day!
Kristyna don’t tell me what to do
Me and my partner are sooo tempted to rent but soo tempted to buy!! But we have no money lol! It’s so difficult knowing what to do!
I needed this validation. My spouse & I are young (in our 20's) with a child & will be expanding out family here soon. We liked the idea of renting at first for the simple fact that we know that we weren't fully tied to being in one spot for a while due to our jobs fluctuating. However, since our son was born, things have changed. We want a little more stability as far as a long term stay. We don't want to have to keep moving every 1 to 2 years when the rent gets to be too much. We don't want to pack up everything & go with kids. So, owning a home seems for feasible for us given what we want & need. We more than likely will be jn this home for a while. It's a 2020 new build so we have great bones to do whatever we want to it in the future without worrying in the next 4 years about replacing a water heater or fixing a gas leak. Personally, believe it'll pay off in the long run!
I own a home (unit)! I bought it in 2017 and in january of 2019 moved to the UK and then to another australian city and by the time I get back next march, I will have been away from it for two years. a lot of what you're saying makes sense BUT you can always rent your house out while your gone which may not recuperate all of the costs, but considering I don't pay rent where I am now (I live at work), it has worked out! I think this video is a good resource but is definitely not completely thorough - life moves fast and there are lots of things that can make a difference.
2020 is unlike any other year. I would suggest for any current buyers to wait. The market will drop - it was already going to drop even before COVID-19 hit. You’ll be able to negotiate so much more in a few months!
I bought a house with my partner when I was 23 and we own it 50/50. We've now just separated and will have to sell it. The house has gone up in value so I have made a bit of money on it but I won't be able to afford to buy on my own for a while now so I'm looking into renting but it feels like I'm going backwards or failing :( I think there's so much pressure and emphasis to own a house, this video really helped.
I'd love to see a video about being a landlord and everything that comes with it, what do you need to do, how do you sort out contracts with tenants etc, my goal is to own student houses and raise the standards for student accommodation.
This is very timely as someone who is thinking of buying soon. Thanks Patricia!
Agreed! We are buying in the process of finding our first home and vlogging it on our channel
Great vid.
My pet peeve is when people say how much money they’ve made on a property but completely leave out the cost of interest, taxes and fees 🙄
Lets not forget that Sharon’s 72K is not recoverable i.e. it’s gone gone. Whereas Michelle‘s „costs“ are an investment „house“ and are recoverable (more likely than not). On another note if one wants to move these days, they still can and rent out the property whilst making use of property management companies out there, that make sure that rent is paid and every broken thing is fixed :-). Plus as long as you are living under a "roof" its either rent or mortgage till death. But the difference is with the later you leave a house behind #generationalwealth
Exactly, provided that the house isn’t going down in value, Michelle when sells will get her deposit back as well as the monthly payments she has put away towards the mortgage every month (minus the interest)
Another thing to consider is opportunity cost. The homeowner saved for years (probably) for the deposit. The renter could have invested that in a low risk investment (such as an index fund with 8% historical return). Each person's situation and goals are different, so renting or owning can be good.
If your in Western Australia the government is currently giving out grants to get people in their first home 15K first home owners grant, plus 25K federal government HomeBuilder grant plus the state government 20K wich is a total of $60 off your home and land package. (must earn under 200K/y) my partner was just given pre approval so now we just have our fingers crossed for the bank to say 100% yes
This is a necessary topic 🙌🏾🙌🏾🙌🏾🙌🏾 was waiting on this
Loving this channel! My partner and I are currently looking at houses. We are first time buyers, however with everything happening I’m now worried it’s not a good time to buy. So much conflicting information out there. I suppose you have to do what is best for your situation like you have stated. I’m in my late 20’s and wish there had been more channels like this years ago. Very informative, they need to teach this in schools. Well done Patricia and thank you!
When you talk about the value of selling a house as a long term investment it is worth considering the inflation and how much this plays a part in the increase in price.
Guys please. Buy if you want to buy then rent if you want to rent the choice is yours. Her advice is heads up to look what to look for not necessarily will come true for you.
She’s giving you facts from her point of view. She’s not trying to put you off. It’s only heads up. You’re fine.
I wish someone had made this before I got my first house...hated homeownership as it did not fit my travel lifestyle, etc.
Home ownership is the long term goal for me. I see more investment in owning than renting. I’ve rented as a student in my adult years and I cant wait to be able to afford a home of my own
Thank you for this, trying to financially educate myself and this is channel is a great introduction. Thanks sis!
I think the key thing from this video is not to go buying property thinking it will get you money, and instead look at other ways of making your money generate more money for you. I would love to see a video on investing, not just talking about the types, but actually showing people how to go about it with basic amounts of money starting at 1000£ for example.
“Mort-death... gage-dont know” 😂😂
Gage: something you’re tied to
Gage= pledge. Mort-gage = death-pledge
I love this sooo much.... I've had so much pressure from my parents on aiming to buy a house even though I know my career will have me moving around. It's nice to see everything being put into perspective and helping me know I'm not making the wrong choice in choosing to rent after all.
Let me illustrate something I believe was overlooked in the stats you provided.
Sharon spent £72,000 after 5 years and since she was renting that money is gone completely.
Michelle spent £120,280 after 5 years which rightly so is £48,280 more than Sharon however Michelle was paying off some of her mortgage over the 5 year period.
If Michelle sold the property for the same price 5 years later at £300,000 she would get her £30,000 deposit and only owe the bank £227,580 not the original £270,000 she borrowed therefore £42,420 is not counted for in the stats you show. The difference in figure is actually £5860 (maybe £10,000 if you add fees to sell).
So a more accurate comparison would be to say Sharon spent £72,000 and Michelle spent £82,860.
Additionally Michelle still has £30,000 deposit and Sharon has £0 so Michelle actually spent £52,860 to Sharons £72,000 meaning Michelle was in fact better off by £19,140.
As the capital on the mortgage is reduced Michelle will be better off by around £10,000 each year thereafter 5 compared to Sharon if she were continue to rent.
Don't get it twisted though renting can still be a power move and home ownership is often negative to your finances over a short term span especially with schemes such as Shared Ownership..
We just bought a home in Berlin, 🇩🇪! Interestingly, Berlin homeownership is much lower than the rest of Germany, only 18% of people but vs rent. So cool to see this video! ✌️😁
Buying will be extremely difficult for me at the moment especially when you have dependents and responsibilities that they come with but I have chosen to invest in other areas.
This is a great detailed video, and a discussion that I'm glad is being had. As a millennial and home owner, I don't think my home has limited me from exploring or taking other opportunities. If the opportunity is right (travel, or relocation for work) I'll just rent out some rooms in the house or the entire house. Owning a home provided my first source of passive income, so I can't see myself going back to the renting life.
lease holding should be eradicated in the uk, they should be allowed to own those properties full right out right
what is lease holding? not from the UK, googled, but still don't get it
@@xanish lease holding is you don't own the land the house is on. So u "buy" the house but only own the house for X amount of years. Depends on the paper work. Can be 100years. And if u wanna buy the land it's another £X00,000 amount paid
@@xanish Leasehold means you only have the legal right to occupy the property you purchased for a fixed period of time. You hold the lease of that unit within a building instead of the person who owns the building - unit being a flat or apartment as they say in USA. You are responsible for inside your unit and the freeholder/owner deals with the external and communal stairs of the building
In effect, being a leaseholder in UK you are renting a flat/apartment within a building/property that has been split into units (flat/apartment) from the freeholder (person who owns the property) for XXXX number of lease years
A UK lease come in different year ranges ie 10yr or 999yrs Common leases are 125yrs
Problem arises the moment you move in because the lease clock starts ticking down to 0 years. Once reaches 0 means you give back the unit to the owner of the building. However, there is an option to renew the lease before it reaches 0 and then the leasing clock starts all over again. The race is then on to sell the unit BEFORE the lease reaches 80 years. At this point mortgage lenders consider the length of a lease will adversely affect the value of a property and its ‘mortgageability’. Some lenders may lend, not all will.
To help out a new buyer when the lease is less than 90 to 80yrs, a seller gets a Section 42 (a formal request from a leaseholder to the freeholder to extend their lease on a property) An extension can be refused and if no Section 42 was sold with the property then as a legal occupier of the unit, you have to wait 24mths before applying for the Section yourself.
Knowing this, is the reason when you see a ridiculously low price for a UK flat on sale, proceed with caution.
AMEN TO THIS. We are doing a video on leasehold vs freehold on our channel soon!
Matt & Tiyana I’m gonna subscribe as I also purchased I’ll see if we have had any similar experiences 👍🏾
Thank u soo much for this vital information. A property is not an Asset until u r making money from it. When ur still paying rent it becomes a liability.This really is Food for thought🙏🏽
Tbh I disagree. I think that buying is far better than renting. In renting all you do is *lose* money and make someone else richer. You don't have to buy right away, but eventually you should. You can also rent your spare bedroom/s to make good money.
Patricia you are God sent. You cannot imagine how your videos are impacting many lives
Sorry but who buys a house and wants to move after 5 years? 🤷🏼♀️ Also in the whole video you never mentioned that you can also rent your property? There's so many options not just selling and you can totally move to another country if you are a home owner! I have many friends who have done just that, and they know they have a house to return to if they want. Please stop scaring people saying you're stuck if you own a house!
FashionCantHandleMe some mortgage lenders have it in their contract you can’t rent a property out
In London there are schemes (help to buy, shared ownership) that most people would need to use to be able to afford to buy. But you can't rent your house out if you use these schemes, they don't want buy-to-let landlords to use the schemes.
@@rfield4308 can get permission from the mortgage broker or change the mortgage to a buy to let instead and rent it out
Renting is really hard to deal with, and the owner of the property can always up and sell it from under you, rip you off, raise rent, or invade your privacy. The happiness and freedom factor of owning a home has been life changing. We purchased a home below our means so we can comfortably pay for it and now we have started focusing on investing in the stock market.
I’ve been thinking about these two options. I’m leaning into renting for now and saving for a home deposit for later when I’m more sure if where I want to live. Thank for the info!
I just discovered Patricia, as I've been investing in the stock market this year and learning more about financial planning! Man, this girl is good! I love the way she talks not just about money, but about global themes, certain tidbids that could apply to various people, psychology, and just straight out brutal, intellectual comedy. I'm loving learning how to adult/$$$!! Thanks!
Am I missing something, is there not some fundamental maths wrong here, the deposit and capital payment aren't really costs because unless the house value has gone down then you will get that return when you sell? So ((stamp duty + buying fees + interest on loan + maintenance) - appreciation) is the actual cost, which will be considerably less than renting in most cases over a 5 year period, if you were to spend considerable money on the house you would also see a significant return on that investment ie. new kitchen. It is important to consider other investment opportunities with that money I will admit. But historically houses have been a lucrative investment for many and any investment can go up or down so there is not safe haven to see that return, housing is as good as any.
It's also worth considering that most people are terrible at saving, paying a mortgage is a good way to force savings.
I was thinking exactly the same?! The numbers shown on the mortgage side were a little bit misleading and made to look like a sum of money which you wouldn’t get back. It’s true that house prices can go down in value but that is uncommon, so the deposit you put into the house and the monthly mortgage payments minus the interest - you get back when you sell (plus hopefully profit). If you never sell, it’s just your home where your monthly payments are likely smaller than rent for an equivalent size property in the same area, and you can live there in retirement by which point you’d hopefully be mortgage free
The numbers are definitely convenient and nicely direct the narrative. Renter deposits aren't guaranteed to be returned anyway - if you trash someone's house/break things, they can deduct money from you. I don't think she included stamp duty in her costs though, FTB don't pay stamp duty un properties up to the value of £300K
So true..before buying my house I had no problem spending 1000 -5000 Euros in things like vacations or furnitures. After purchasing our dream house my biggest satisfaction comes from buying things secondhand or creating a good time at home or outdoors with my family. DIY projects and garden work are the best right now, if you ask me.
The "forced savings" thing is really the gist. You could rent and use the extra money to invest in the stock market, and in a lot of cases, actually make more in the long term (like Pat said, the stock market tripled from 2009-2019 where as house prices only doubled). The issue is, most people just spend the extra money they have, not invest it.
Where I live, a comparable condo to buy would cost me around $1000 CAD (577 pounds, 750 USD) MORE a month than the rent I pay for my apartment. If I invest that money in the stock market, I will come out ahead in the long run, and not have to put up with the stress of owning.
Personally, my plan is to keep investing with all that extra money I save each month, until I can just buy a home outright (or with a teeny tiny little mortgage) one day.
You have the most helpful practical life videos on youtube. More useful than school by far