A friend bought a condo in a seller's market. Condos were listed on Friday and sold on Sunday with multiple bids driving up the price. It was discouraging. Finally he found a fixer upper that didn't show well. Everyone wanted move in perfection. This condo needed paint, carpet and a few minor repairs. He was able to negotiate with the seller as there were no other buyers. Look for a place with cosmetic faults and then have a home inspection to make sure that the faults are cosmetic.
@@princessl.d.g.Hi, I do not own a condo, but have done research & 2 tips i thought were valuable are 1. Ask if the condo has HOA fees & how stricked they are. Most people don't realize their "maintenance fees" are HOA's with rules. And 2. If they do have fees ask if they have a cap. If you live there long enough you don't want them to raise fees so high you can't afford to live there. Same concept as mobile home parks. Seems like cheap housing until your lot rent almost doubles over short amount of time, in which you might as well of bought a house or rented an apartment. Good luck!
We bought a house. We like it. That's all there is to it.😊 Buying was the right decision for us. We rented for many years. That rent kept going up year after year. We ended up spending more than we wanted to spend.
Condos are great! I've lived in one since 2016. Bought super cheap and I haven't mowed a lawn since. If you need a small place and don't care about paying for an HOA, get you a good condo.
Yeah, I didn't want to live in Santa Ana or someplace where I could not go out and walk and feel safe. I made the decision to buy a condominium in an area where it was more upscale a little more pricey, but I felt great coming home and feeling like I had spent my money on a place where it felt more like peace rather than stress.
When Dave was talking about how renting is terrible I was thinking "what this lady needs is a condo" and that is just where the conversation went. My aunt bought a condo for retirement and she just turned 80 and still loves that condo in a nice area.
or what about takeing the 350k form seling the house puting that in the stock market and then find a apartment for 1200 a mouth. i mean if she take 4 perceent a year form 350k that pay the rent and it should go up.
@@stevemyopinion423there’s more risk that way, especially for someone nearing retirement. If you buy a house you have that house regardless of what the market does. If you try to beat the game by investing instead then if something goes wrong and you lose money you might end up in trouble. If you’re happy with the risk it might be a viable strategy but if you want peace of mind in retirement the owned house is probably better.
Title insurance is typically mandated by the mortgage company but it is a total rip-off… it’s just extra profit for them. Also, shop around. I was quoted $1800 for title insurance when I got my closing docs. I went online and found it for $800. When I showed this to title company they immediately matched it. Saved $1000 for 5 minutes of searching online.
I was a mortgage loan officer, we did not provide mortgage insurance, but it was required due to conventional loan guidelines. We would quote our borrowers the best price we could find between multiple outside providers. I say this to say we were not making profit off of mortgage insurance.
@@samuelirving928the rip off of title insurance is that a) you are paying the title company for insurance against mistakes they make titling your property. B) it’s usually mandatory, C) the cost to fix the title is minimal… yes, the house may cost hundreds of thousands or more, but it’s a paperwork fix, not the value of the home. The industry takes in billions in premium payments every year but the losses are infinitesimal. It’s pure profit for the title companies and insurance providers.
PMI is a joke. Fortunately we had a realtor & a mortgage company that told us to avoid paying PMI by taking an 80/20 loan. Your house payment stays the same but you essentially have 2 loans 80% on 1 loan & 20% on another. Then if you want to go one step further you take the 80% & do bi-weekly payments. Still the same amount dollarwise for each month, but your main loan gets paid off 10-15 earlier because your saving in interest. It takes planning paycheck wise (we were pay check to pay check at the time) but was really a Godsend because it helped budget out each week a little easier. I don't know why none of these finance shows ever talk about avoiding PMI (which is there in case you defalt-so bank is saying "we don't trust you") There's ways to help get financing without costing extra for things you don't necessarily need.
Yeah. It's way better to pay off someone else's mortgage instead of your own. That's why you should rent from me. You don't want to be bothered with those pesky HOA fees or insurance or maintenance. This way, when you want to retire in 30 years, you can't because rent has probably at least doubled since you started renting and unless you have 5 or 10 million bucks stashed away, you'll never be able to retire because you'll have to keep working to pay off my mortgage.
I’m not saying it’s cheaper to rent in the long run. What I’m saying is if you are paying $2,000 a month for rent you aren’t “throwing away” $2,000 a month. If you are just starting out and your paying $2,000 a month on a mortgage, only around $200 a month is going to the principal. Yes you get to the benefit of appreciation and your “rent” not increasing but unless you plan on staying somewhere for a while renting can be cheaper.
Caller #1 - Make sure you are completely out of debt first with a fully funded emergency fund (finish babystep 3). Don't have a car loan, save before you buy your next vehicle so you can pay cash with no monthly debts. Caller #2 - find a new job first, find out if they will help with relocation uf that will help. Then you will know where to look for housing convenient to work. Good advice to rent first while looking for property to buy in area you like.
Would love Dave to give us a live Zillow demo of the current housing market and tell us what’s affordable to buy with the median income within 30 minutes of Nashville.
@@hkiajtaqks5253 It's true. Owning a home is significantly more expensive and the result of everyone being house poor is our current market where 450k dilapated homes are on the market
Regarding the 15yr vs 30yr, yes, I understand the interest rates are always lower on the 15yr. But what we did twice was get a 30yr and paid it off in 10 years by making principal payments every month. The rationale is that we beat the interest, get out of debt, *but* if I had lost my job or become incapacitated, the lower monthly payment of the 30yr is kind of a fail-safe fallback option during temporary hard times, so there's no default on the loan. On one hand, I'm surprised Mr. Ramsey doesn't mention this, but on the other hand, I get it, because not many are disciplined enough to commit to paying the home off early. But in my estimation, this is a sound strategy that gives the best of both worlds (less interest, out of debt, but lower monthly payment commitment if things go bad).
I said I would never buy a corner lot, did not like the idea of having 2 front yards. Well never say never. We bought a corner lot home and have lived in it for 36 years.
If everyone followed the Dave Ramsey way almost no one would buy a house. I agree your mortgage payment should be around 25% of your take home pay. Your next house should be a 15 year mortgage. You are good with a 30 year mortgage on your first house
Problem I've ran into which buying a house was there's so much competition for even the most mediocre house that the seller only sells to the person offering far over asking price and skipping the home inspection. Really hard to get a house without doing both of those things now
in the 1700-1800 French Acadians people in Louisiana designed the "girls' bedroom" to be accessed by walking through the parents/ bedroom. The boys' bedroom would be on top of the kitchen building next to the house. Kitchens were usually in an adjacent building: too hot and help prevent house fires.
So what you’re saying is that in the 1700-1800s French Acadians people really wanted their children to be prevented from any ‘immorality’ more than they wanted them to not die in house fires. Got it.
I love your advice on not getting a house that is a good deal but ugly! I would also add the same is true for the backyard. If there’s something you hate when you look at a house and you think “I’ll get over it,” be really careful, you might not ever get over it. We bought a house that was a good deal but the backyard was surrounded by neighbors, so every window you looked into the neighbor’s windows and we had zero privacy at every angle. It was something we thought we could get past but it was not worth waiting for a 10 year privacy screen to improve. 😬
What we are doing is buying now, the interest rate is high and no we don’t have the 20% down but mortgage rates are going to go down and when they do we will refinance in the event they don’t we are “safe” because if they continue to rise it will be nearly impossible to buy.
I'm so grateful I bought my first home in April 2020 just as the pandemic craziness hit. I wouldn't be able to afford it now with how much prices have risen
Soon, I’ll be ready to buy. Almost have the 20% down payment and money for moving expenses. Saw a house I like, an oldie but a real goodie, in an area I’d like to live in. Priced nicely. Taxes ok. This would be my little retirement haven. I’d do a 30 yr fixed mortgage though, because right now almost all my income is from SS and I want the payments to be at least $200 lower than my current rent so I’d have enough margin to actually enjoy retirement
If it's just superficial stuff, ugly is fine, but if it's structural stuff then avoid it unless you're a contractor. My house was a great deal and looked "ugly" but it was easy fixes like terrible paint, horrible smelly carpet, and holes in the walls. All easy fixes even though it looked horrible going in.
My mother and dad did that. They sold their house then lived happily renting in a beautiful downsized apt right on the golf course where they played daily in the fall spring and summer. In the winter they rented in Florida. It was a great solution for them.
???? USDA guarantee loan, 0% down, no PMI, 103% of appraised value, cash back at closing. People save for a down payment, and the cost rises faster than savings my $50K home 2011, is now ~$500K.
No more than 25% of your take home pay with a 15-year fixed rate mortgage and 20% down to avoid PMI. Basically get filthy rich before you buy any real estate within 100 miles of any city. Live in the sticks and work remote for a company working out of NYC that doesn't do any cost of living adjustments to their salary.
25% of take-home on 15-year fixed is not realistic. I think 40% of take-home is something the current market demands out of you. Independent how how much down payment you can muster. Unless you wanna live in a slum.
I got a 30-year mortgage @ 2.75% in 2020. I am so glad I didn't wait until I could afford a 15-year loan. My home has appreciated in value by 40% in the past 4 years and interest rates are nearly triple. I agree with Dave about a lot of things, but not the 15-year loan. When faced with the choice of paying my mortgage + interest or paying someone else's mortgage + interest (renting), I'll choose to pay my mortgage, even if the interest is a little higher. I am surprised that Dave hates car leasing, but then would make a suggestion to continue renting when you could afford a fixed-rate mortgage and pay for your own equity, rather than for a landlord's.
Home ownership is much more than mortgage. You need to have money for property tax, repairs, regular maintenance (e.g., HVAC tuneup or yard work), increased utility cost over renting, insurance, and any community (HOA) fees. Renting can definitely be a better option if you do not plan to live there at least 7 years and/or if you don't have a lot of extra money for stuff other than the mortgage payment. Also, there is no longer any tax credit for mortgage interest if you take the standard deduction for taxes (90% of the public takes this deduction).
@@georgewagner7787 Of course. My point is that a 30-year mortgage is almost ALWAYS better than renting in this current economy. Dave makes no effort to check the math for his callers in these videos, and someone waiting until they can afford the cost of a 15 year mortgage without looking at other variables are making a mistake. People chasing that ever-increasing 20% down payment as housing prices increase.
@Big-bob560 My point is that if you follow Dave's recommendations, you may miss out on opportunities. 2019-2021 allowed a lot of people the opportunity to score mortgages on incredibly low interest, and people who listened to Dave during this time and didn't buy because they couldn't afford the cost of a 15-year screwed themselves out of homeownership. My friends did this, and now they are stuck renting places for the cost of owning but with none of the equity. Dave gave bad advice, I wish he would just own it, but he won't.
Best home buying advice is to look for value add opportunities, do you have an extra “bonus room” in the basement? Hire a company to install an egress window. outdated kitchen, update that and FORCE APPRECIATION. If you add value then you add money to your pocket.
I bought my house in 2007, by 2013 I paid completely at 34. Now I moved to the US at 45 and want to buy a house here but the market is like the wild wild West 😢. Start over again but older...
We bought a house with added bedroom, was 2 bedroom you would go through one bedroom to enter the next one, my clever husband put a partition wall which cost a few hundred and we now have a 3 bedroom house worth £40k more than what paid! It was worth it! It is worth more than the same house next door. Get a survey, and bring a builder with you to view the house, pay them to really look at the house to see its potential, same with used cars.
My husband and I haven't bought a house just yet, but it sounds like our plans are right on track. We are planning to pay at least 20% down (maybe more, depending on price at the time we decide to buy), get inspections, and get a 15 year fixed mortgage. Though, with the current interest rate, we're waiting for now.
No need to get a 15 year fixed from the start. Get that 20% down and just get that 25-30yr mortgage to buy as soon as you can. Yes you pay a lot of interest in the beginning, but now you pay 100% rent. Get that foot in the door, refinance when the interest drops, do extra payments. According to your nickname you have a better head start than I had. I only put 10% in and didn't even have 4 digits in my savings account left just after I bought my house. I bought it on a 25yr variable mortgage, I was just out of debt, and drove a car that could (and did) let me down any time. I'm 13.5 years in, didn't go into debt, built up and maintained an emergency fund (which I did need, my life is no fairytale), I'm renovating, I drive a car I bought brand new for cash 8 years ago, have an oldtimer in the garage, already shaved off 3 years while maintaining the same monthly payment despite interests shot up last year, and I'm right on track to have the mortgage paid fully off in 4 years (18years after I bought) or sooner (depending on interest rates) as a single woman.
That’s exactly what I did. I sold my big house for a townhouse that’s worth much more now, sell the townhouse, get another townhouse use the rest of the money to enjoy the rest of my life.
20 years fixed for 1,5%, paid 46% as down-payment. And monthly is 18% of our take-home pay. But we do think about additional payments on the principal, not an easy decision.
btw.. i made additional payments....in 2018, 2019, 2020 before the interest rate increases. i wish i hadn't, yes i pay even less monthly , and i have saved 9k in interest, but now i wishi had gone slower 2.15 is impossible to find today...
@@NoName-to5xl more or less in the same boat. I struggle because I can get 2,6% interest on a no risk savings account and do the payments as soon as the rates of savings accounts drop below 1.5% again. That seems to be the smart choice financially. But Dave always has the non-financial arguments that also make sense. So we're doubting what to do.
In 2011, I bought an unmarketable Fannie Mae foreclosure for $50K. Had FHA tell me beforehand what needed to be fixed to get an FHA loan. 3.5% down $214/mo for 30 years, Auto-pay from retirement pension
Pay off at least a little more early. You will watch the interest amount drop every month. I paid a 15 year rental off in 7 1/2 by paying repairs myself. It felt great
Yes, thank you for this. We're 30 and only have 10 years left on our 15 mortgage and we're so happy. Our parents will never be done with their mortgages.
Yup we bought when we were about to be homeless with a newborn and couldn't find an affordable rental. So we moved 1000 miles away and purchased a fixer upper and started over somewhere we could actually afford to live. Rather than try to stay "home" which we couldn't afford.
@@ZombiePilot7how do you purchase a home when you can't afford rent? Plus a newborn. Sounds like gloating success on your own when you're leaving out a crucial aspect. Someone helped you or you're lying.
@bt-sy5yp yes, we did have help. Our loan officer for our VA homeloan. Our VA home loan was 0% down and we were about to be homeless due to unexpected discharge from the military. But thanks for giving me the opportunity to elaborate on details that most don't care for lol
Home buying tip home inspectors at least in my State doesnt require anything special. A weekend class. I'm a licensed Plumber over 10,000 hours and stayed test to get where I'm at. I walk into houses that where inspected that have all sorts of problems. I here all the time I spent hundreds if not thousands to have it inspected. If it was me I'd hire a trades person in that field specifically a master and hire them to look at it.
If it was you, would you do the trade inspection? I hear a lot of that from pros, but finding one to commit or take the risk to say anything relating to an inspection is limited.
home inspections in my area are close to 800 bucks Id gladly inspect a houses plumbing for 85 dollars thats my nominal fee. Nice thing it also helps out my business grow it's a win win. As I get to meet new potential customers why wouldnt you want to do it as a potential tradesman.
Most people only compare purchase cost vs selling price to determine what “profit” they made.. let’s consider it a wash between what you’d pay in rent vs what your mortgage payment is.. now if you own the home, you’ll have at least $6k in property tax, $3500 insurance.. another $1200 in basic maintenance… that’s $10k annually,,,, at some point, you’ll need a new roof =$25k, new a/c $15k, and whatever else goes out.. I’d say, over a 15yr period, a homeowner will spend around $16k per year.. that’s $240k over 15yrs.. and I haven’t even discussed mortgage interest… so if you buy a $400k home, you’ll need to sell for around $650 - $700k just to break even.. meanwhile I’ve invested that $16k annually into my 401k.. and I do t have to stress about anything breaking, or some crazy renter…
I gross about 60-70k yearly at a railroad union job. Houses within 30 mins near work average about 400k. With interest rates 6.5% on 30 years my mortgage would be around 2900/month (tax’s and insurance)and cost about 850k minimum to term. And that’s with a 60k down payment. It’s hard to do and hopefully it gets better.
A 1 or 2 bedroom house is harder to sell as well. I had a 2 bedroom, it was hard to sell. It had nice original hardwood floors, open floor plans, covered in porch on the front, nice character! But hard to sell
I wish 25 year old josh had dave ramsey in his life lol. I still have time though so im glad i found him. If people taught this kind of personal finance in schools alot of poor children you have a better shot at life.
In my opinion, house prices will continue down as people leave the state and prices correct due to market pressure. The problem with Florida is the property taxes increased based on the boom and the cost or inability to obtain homeowners insurance. Florida's in for a rough 5 years imo.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of a broker, before I started seeing any significant results in my portfolio, been using the same Adviser and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of a broker, before I started seeing any significant results in my portfolio, been using the same Adviser and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
Corner lot if you live in the north and you have sidewalks you end up with extra snow shoveling and it can be a pain in the butt. if you have sidewalks
Overall, Dave's advice is good. However, I think people need to remember it's called PERSONAL finance. Everyone needs to do their own research and make decisions based on their own circumstances. Is 30 yrs a long time? Yes. However, so is 15 yrs, so I don't think that option should be discounted. Crunch the numbers w/ the understanding the interest rate is higher than on a 15 yr. It's also a great way to keep a buffer in case of a rainy day. When things are great, pay it like a 15 yr if you can. When things go wrong, pay your lower normal payment.
Be careful about how you think about “own circumstances”. Yes everyone has different circumstances, but if you’re playing the victim then you’ll never get out in one piece.
The average length of home ownership is 8 years. 16% live in their home for less than 5 years or less. So if you know you will only be there a short period of time, why not get a 30 year mortgage with low monthly payments?
My next door neighbors house Same square footage as mine nice looking outside. He payed 150,000 less then me. I was shocked. Figured I overpaid. Then I saw the inside. The layout is awful. It doesn’t even make sense. My layout is beautiful and open. He will have to gut the whole interior. Or sell it for super cheap.
If followed this advice I would have been completely priced out of where I live now. I put 5% down, 30 year fixed, and the payment was 1/3 of my take home pay. My home went up 50% in 5 years and interests rates doubled over time.
I've got £100k to invest. I want to build a nest egg for when I'm older. I want to know if it's a good idea to add all my savings into a long term ETF, set and forget Come back in 20-30 years, instead of 250-300 DCA every month. Which ETF or investment would you recommend?
My advice buy a brand-new home, you got warranty and you're pretty good for 20 years for you have to do any repairs and it holds its value a lot better.
I’d love to buy a new house but in my area, decent 20 year old homes start around $600k. Similar new homes in the same neighborhood cost $900k. I would estimate the value will drop at least $200k once the home is no longer “new” AKA, as soon as you buy it. This is in Seattle, WA. No way I can afford new personally.
My home is about 50 years old. They built a brand new subdivision next to mine about 10 years ago. Those houses are falling apart. The siding fell off about half of them in multiple wind storms. Roofs torn off. Foundation issues. At least with an older home, all the settling and shotty workmanship should have been dealt with by now.
How much down to avoid PMI or how much of a mortgage gets paid off before PMI can be dropped? Is buying a house with a property package safe or payoff property before building a house? I want to avoid HOA on top of a mortgage.
The younger ramsey team members are more watchable and seem more relatable. Dave may have no debt and have made it, but he seems like a grumpy old man. He has some really good points but not all of his points are practical. He is right on being debt free.
You can get title insurance… but the title company is responsible for reporting the exact property transferred. If they fail to do so, you can certainly sue them for the damages associated with such inaccuracy.
25% take home needs to cover mortgage and expenses on a 15 year loan? Bruh, at 7% interest rates, that is asinine. That gives a person making 80k a year a max budget of 125k.
Not sure I agree, condo's are built crappily and the builders know that and want to download onto you, they know if the freaking windows are poor and not sealed. The roof is leaking and the parking garage is flooding. And you have that all to pay for!
Gosh, I wish we had received this advice on our first home. We didn’t even get a home inspection and the people had hidden the fact that there were leaks in the roof by painting the ceiling where the leaks had been so we wouldn’t notice anything. We didn’t even know to check the AC to see if it was good or not. It was actually a piece of crap. I have a whole list of things I can tell you that were wrong with this property and now 28 years later we’re ready to sell the place and we’re finding out that it was never converted to real property. Even though we paid for it. Luckily, we were able to track down all of the engineer reports and permit to prove that it was done as well as they can come look at the house. It’s a manufactured home, but it was supposed to be converted to real property that was contingent upon us getting the loan. But now 28 years later, we find out it was never converted. We thought it was converted all along, so we did improvements to the house like we stuccoed the home to make it look like a stick built home. We also put a metal roof on and we added shiplap to the dining room, and did some tile work in the bathroom only to be told that we needed permits for all of that work, and that it should never have been added to the manufactured house because it’s not constructed to hold that kind of weight. Now our argument to them is all of this work has been on this home for over 25 years and the home is in great condition. So now we have a fight on our hands to sell this piece of crap. Luckily we have 2 acres of land. With all that said and done it only appraised at $264,000 at this point we can only sell and get the hell out of there ! We paid $79,500 28 years ago. So it wont be that big of a profit.I wish I had this advice that Davie is giving right now back in the day. But I was only 21 years old at that time so it’s very smart of this person to be asking these questions at their age. I wish Dave was around back in 1995.😂😂😂
Thissss is why he says have a good chunk saved on top of the buying costs. You need it. The horror stories I’ve heard like this. Wow
4 месяца назад
It sounds like you had a rotten deal. Always look at the bright side. It was a learning experience. What do you expect from a young man at 21 yo. I wish I bought anything at that age. Think how much money I gave to rent, lost savings and equity, and the prices are crazy high now plus the high interest. The good thing is that you have plenty of land that maybe you can do something with it to make up for the lost opportunity. If you can't sell it, see if you can Rent it? Maybe you can add additional mobile homes to that lot and rent them. That can turn to a sweet cash flow. I'm not sure what your situation is like maybe it's an option or maybe not. Think outside the box and see what you can get out of it. Just don't beat yourself down.
We are actually building our dream home as I speak. We were literally ready to sell to a family when we realized if we went to Vegas that’s where we were planning on moving to because we are 45 minutes away it and it’s kind of difficult to run businesses in Vegas when you lived this far out. But when we saw that it was going to run a minimum of $700,000 to buy a piece of property in Vegas we decided it was cheaper to be owner builders and build on the existing property . On this exact same property and this existing manufactured home is allowed to stay on the property as an accessory dwelling unit and we will be able to rent it out. All in all myself and my husband didn’t do so bad buying this property. Thanks for your comment.
I did this math a few weeks ago and found buying a 500k home in my area would cost me over $1.7 million after 30 years and based off average home value increase after 30 years i could sale the home for $2 million. Potentially I would have a 250k profit before taxes(but now im homeless). On the other hand I figured what rent would cost me over 30 years it would cost me a little over $700k. The difference in cost over owning would net me over 3 million in a retirement account after 30 years. The 3 million doesn't account for inflation. Renting is obviously the way to go in this market and into the future.
OK Dave, so what do you say to a young person who lives in California where the median house costs 1.5-2M, who’s job, family, history and community are there? Renting is bad, borrowing is bad, so what to do? My adult child is a successful therapist and university professor, but can barely afford her apt rent. Do you really tell everyone to move out of California?
Just make 170k a year and have 80k down to afford the average American house price of 400k, by Dave's rules. Ok got it, so the other 95% of us just stick to renting
I don’t make 170k. 25 years old have over 20% saved up. Average house where I’m at isn’t even close to 400k. Either move somewhere else or lower your standards. Don’t put your limits on the rest of us.
@2quick524 This is the equation for the average home price in america, And a math don't add up for 95% of Americans that earn less than $175k. This isn't based on my particular situation
Dave and people like him are hoarding real estate as investment properties, contributing to the housing shortage and robbing others of the opportunity to buy modestly priced home, leaving them stuck renting from him and his investment real estate friends for the rest of their lives since they cannot keep up with constantly increasing home prices and subsequent property tax increases.
i donno... Ive saw quite a few ugly houses bought for cheap and flipped into a nice looking house for a profit. Depends on if you can DIY it or not... and depends on whats ugly... somethings cant be fixed.
if you can fix it yourself fine; if you know less just make yourself a place which is sanitary but affordable in both home costs and costs of commuting to from work
20% down and 15 years term only 25% of the income for the monthly payments INCLUDING taxes, HOA, insurance etc. at this point, only millionaires can afford even a basic home.
With condos you are dealing with HOA fees and problems. If she buys a condo, then she should have an attorney read the fine print for that association so that she understands all the pros and cons. Personally, I would buy a little house on a quiet street and have on-call a very good handyman that wood can come over and take care of things. Dealing with HOA issues can be a nightmare
Why? In 2 years the competition will be super high and the house you want will be available to 8 other people. Versus now where no one wants to buy a house means the competition is low.
@@tmi4507 you need to do some serious research. Look at the grafts, reports, charts, FRED, new home construction, inventory, interest rates, etc like I am and you will se that no way in hell is there anything, except another c-19 like event, that indicates prices will be anything but down, significantly down...
@@owenswearengen and they were right. Prices are going down. Look at the reports, grafts and charts. Prices are down from 2 years ago across the board but for a few places in frigging Idaho and the Midwest. AND they will continue to go down..
@@rcdyerdepends where you live. I live in southwest Miami and an old run-down house down the street just sold for $470k only to get demolished and rebuilt…
Hello there . Is it good idea to buy a home and rent it out since I am not getting any interest on my money plus I have no idea how to do any kind of other investment . ( I live in Europe) Pls help ❤
my agent told me his inspector just checks the outlets and water faucets (as if this was a good thing.) I flat told him the inspector isn't doing a thorough inspection if that's the case.
I think it was this video, but I liked it when he said, “these principles work when it’s good, and they work when it’s bad, they’re not situational.” The Bible works all the time.
You don’t need 20% that’s the biggest misconception! If you go conventional with 5% the PMI can drop (without having to refinance) after equity goes up ! Don’t stay out of the game because your focus on 20-% down. By the time you’re done saving 20% you will have to stay over because of how much home prices have gone up . We bought 2021 at 5% down debt free with an interest rate at 2.375% . If I would have waited I would have lucked out . My rent is the same as what people are paying for apartment.
Regarding renting, my home payment goes up every year, over $700 since I first bought it, so that goes up as well as renting costs. Also the upkeep is lots of $$$$$$$ on a home so I think that lady would be just fine renting.
Bro that’s SMART. Buy something you can pay off FAST with your income. Maybe even 250, but don’t go crazy just because you have a good income. Be humble
I’m closing in on my retirement and I’d like to move from Regina to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
But, i am considering for long term care…. When and if i get to that point i will do a reverse mortgage because long term care insurance is too expensive
So. I’m debt free but I’m 25 and hoping to get a house sometime. Where in the baby steps is saving for a down payment? After emergency fund or after investing in retirement? I feel like after investing 15% into retirement but I’m not 100% sure
So sad how people are picking and choosing talking about “ugly house” meanwhile there’s people who just want a roof over their head and a stove to cook warm meals on but can’t afford it!!! Sad privileged world.
I agree with most all Dave preaches. However, the 20% down to negate PMI is kind of a silly point. 20% down is a fantastic idea don't get me wrong. BUT, putting 10% down on a home and having PMI is better than missing an opportunity to buy a great deal. My PMI is $26 monthly. You can pay down the house to 20% post purchase and deal with a small PMI inconvenience for a while. It's not that big of a deal.
For that lady at 58 with a house she doesn't want anymore. I think she should get therapy or counselling. Just for a month or two, to help her decompress, and separate the anxiety and fatigue out of the decision-making. For myself, I'm looking to buy my first home.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals??
Bought in 2018 at 3.15% on a FHA loan 4% down, 30 year Duplex that I've house hacked since Escrow all in (including PMI) is $1800. Renter pays me $1250 (i should be getting $1400+ but thats another story) In repairs, added parking spot and remodels im $40K in (all cash flowed) Refied in 2021 at 2.25%. I have a written budget to have this paid off by 2035 I dont know if this is good or bad.
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A friend bought a condo in a seller's market. Condos were listed on Friday and sold on Sunday with multiple bids driving up the price. It was discouraging. Finally he found a fixer upper that didn't show well. Everyone wanted move in perfection. This condo needed paint, carpet and a few minor repairs. He was able to negotiate with the seller as there were no other buyers. Look for a place with cosmetic faults and then have a home inspection to make sure that the faults are cosmetic.
Interesting! I’m looking to purchase a condo some time after college.
@@princessl.d.g.Hi, I do not own a condo, but have done research & 2 tips i thought were valuable are 1. Ask if the condo has HOA fees & how stricked they are. Most people don't realize their "maintenance fees" are HOA's with rules. And 2. If they do have fees ask if they have a cap. If you live there long enough you don't want them to raise fees so high you can't afford to live there. Same concept as mobile home parks. Seems like cheap housing until your lot rent almost doubles over short amount of time, in which you might as well of bought a house or rented an apartment. Good luck!
@@dragonflylover1211 Wow. Thank you for that info 😊
We bought a house. We like it. That's all there is to it.😊
Buying was the right decision for us. We rented for many years. That rent kept going up year after year. We ended up spending more than we wanted to spend.
My father taught me also pay attention. Go see it after it rains see where the water sits.
You don’t wanna buy a house below road level
true true, my dad said the same.....
im glad I know my dad is integral. but you better not have any family from my part of the world.
I always do that. I check it out at night and day and rain etc
I love this style of video where it's a compilation of a single topic.
Meta wisdom from Dave is always appreciated
Condos are great! I've lived in one since 2016. Bought super cheap and I haven't mowed a lawn since. If you need a small place and don't care about paying for an HOA, get you a good condo.
Yeah, I didn't want to live in Santa Ana or someplace where I could not go out and walk and feel safe. I made the decision to buy a condominium in an area where it was more upscale a little more pricey, but I felt great coming home and feeling like I had spent my money on a place where it felt more like peace rather than stress.
When Dave was talking about how renting is terrible I was thinking "what this lady needs is a condo" and that is just where the conversation went. My aunt bought a condo for retirement and she just turned 80 and still loves that condo in a nice area.
I hope her HOA doesn’t increase the rate due to storm or anything else.
or what about takeing the 350k form seling the house puting that in the stock market and then find a apartment for 1200 a mouth.
i mean if she take 4 perceent a year form 350k that pay the rent and it should go up.
@@stevemyopinion423 your rent will go up too every year.
@@stevemyopinion423how does one make 4% a year on $350k on stocks? Or is that something you leave to a stock broker
@@stevemyopinion423there’s more risk that way, especially for someone nearing retirement.
If you buy a house you have that house regardless of what the market does.
If you try to beat the game by investing instead then if something goes wrong and you lose money you might end up in trouble.
If you’re happy with the risk it might be a viable strategy but if you want peace of mind in retirement the owned house is probably better.
Title insurance is typically mandated by the mortgage company but it is a total rip-off… it’s just extra profit for them. Also, shop around. I was quoted $1800 for title insurance when I got my closing docs. I went online and found it for $800. When I showed this to title company they immediately matched it. Saved $1000 for 5 minutes of searching online.
In some instances, you can renew the policy from the seller for even less .
I was a mortgage loan officer, we did not provide mortgage insurance, but it was required due to conventional loan guidelines. We would quote our borrowers the best price we could find between multiple outside providers. I say this to say we were not making profit off of mortgage insurance.
@@samuelirving928the rip off of title insurance is that a) you are paying the title company for insurance against mistakes they make titling your property. B) it’s usually mandatory, C) the cost to fix the title is minimal… yes, the house may cost hundreds of thousands or more, but it’s a paperwork fix, not the value of the home. The industry takes in billions in premium payments every year but the losses are infinitesimal. It’s pure profit for the title companies and insurance providers.
PMI is a joke. Fortunately we had a realtor & a mortgage company that told us to avoid paying PMI by taking an 80/20 loan. Your house payment stays the same but you essentially have 2 loans 80% on 1 loan & 20% on another. Then if you want to go one step further you take the 80% & do bi-weekly payments. Still the same amount dollarwise for each month, but your main loan gets paid off 10-15 earlier because your saving in interest. It takes planning paycheck wise (we were pay check to pay check at the time) but was really a Godsend because it helped budget out each week a little easier. I don't know why none of these finance shows ever talk about avoiding PMI (which is there in case you defalt-so bank is saying "we don't trust you") There's ways to help get financing without costing extra for things you don't necessarily need.
So many people are worried about "throwing away money" on rent, but no one is worried about "throwing away money" on interest.
Also, repairs, HOA fees, insurance, maintenance, etc.
Don’t forget property tax.
Exactly!!!
Yeah. It's way better to pay off someone else's mortgage instead of your own. That's why you should rent from me. You don't want to be bothered with those pesky HOA fees or insurance or maintenance. This way, when you want to retire in 30 years, you can't because rent has probably at least doubled since you started renting and unless you have 5 or 10 million bucks stashed away, you'll never be able to retire because you'll have to keep working to pay off my mortgage.
I’m not saying it’s cheaper to rent in the long run. What I’m saying is if you are paying $2,000 a month for rent you aren’t “throwing away” $2,000 a month. If you are just starting out and your paying $2,000 a month on a mortgage, only around $200 a month is going to the principal. Yes you get to the benefit of appreciation and your “rent” not increasing but unless you plan on staying somewhere for a while renting can be cheaper.
Caller #1 - Make sure you are completely out of debt first with a fully funded emergency fund (finish babystep 3). Don't have a car loan, save before you buy your next vehicle so you can pay cash with no monthly debts.
Caller #2 - find a new job first, find out if they will help with relocation uf that will help. Then you will know where to look for housing convenient to work. Good advice to rent first while looking for property to buy in area you like.
Would love Dave to give us a live Zillow demo of the current housing market and tell us what’s affordable to buy with the median income within 30 minutes of Nashville.
George did something similar to this on his show recently.
If you adjust and get a 30 year, that can substantially help you afford a home. Just be careful to not overbuy and become house poor.
Purchase the CHEAPEST house you can find that wont sacrifice your personal safety. Being house poor is worse than renting.
@@KevinNordstrom "Being house poor is worse than renting" Interesting.
@@hkiajtaqks5253 It's true. Owning a home is significantly more expensive and the result of everyone being house poor is our current market where 450k dilapated homes are on the market
Regarding the 15yr vs 30yr, yes, I understand the interest rates are always lower on the 15yr. But what we did twice was get a 30yr and paid it off in 10 years by making principal payments every month. The rationale is that we beat the interest, get out of debt, *but* if I had lost my job or become incapacitated, the lower monthly payment of the 30yr is kind of a fail-safe fallback option during temporary hard times, so there's no default on the loan.
On one hand, I'm surprised Mr. Ramsey doesn't mention this, but on the other hand, I get it, because not many are disciplined enough to commit to paying the home off early. But in my estimation, this is a sound strategy that gives the best of both worlds (less interest, out of debt, but lower monthly payment commitment if things go bad).
I said I would never buy a corner lot, did not like the idea of having 2 front yards.
Well never say never.
We bought a corner lot home and have lived in it for 36 years.
According to Feng Shui, it is a bad lot.
@@trains889 I don't know who this "feng shui" shaolin monk so i'm good.
Unless it’s a townhome
If everyone followed the Dave Ramsey way almost no one would buy a house. I agree your mortgage payment should be around 25% of your take home pay. Your next house should be a 15 year mortgage. You are good with a 30 year mortgage on your first house
Almost no one SHOULD buy a house in 2023
Problem I've ran into which buying a house was there's so much competition for even the most mediocre house that the seller only sells to the person offering far over asking price and skipping the home inspection. Really hard to get a house without doing both of those things now
in the 1700-1800 French Acadians people in Louisiana designed the "girls' bedroom" to be accessed by walking through the parents/ bedroom. The boys' bedroom would be on top of the kitchen building next to the house. Kitchens were usually in an adjacent building: too hot and help prevent house fires.
So what you’re saying is that in the 1700-1800s French Acadians people really wanted their children to be prevented from any ‘immorality’ more than they wanted them to not die in house fires. Got it.
As a surveyor I approve this message. Its always unfortunate to do it after.
I love your advice on not getting a house that is a good deal but ugly! I would also add the same is true for the backyard. If there’s something you hate when you look at a house and you think “I’ll get over it,” be really careful, you might not ever get over it. We bought a house that was a good deal but the backyard was surrounded by neighbors, so every window you looked into the neighbor’s windows and we had zero privacy at every angle. It was something we thought we could get past but it was not worth waiting for a 10 year privacy screen to improve. 😬
What we are doing is buying now, the interest rate is high and no we don’t have the 20% down but mortgage rates are going to go down and when they do we will refinance in the event they don’t we are “safe” because if they continue to rise it will be nearly impossible to buy.
any wager on when they go down? Were 7% a year ago and they're 7% today, even with a FED rate cut.
I'm so grateful I bought my first home in April 2020 just as the pandemic craziness hit. I wouldn't be able to afford it now with how much prices have risen
Same! Very thankful. Now we might be in our forever home though! 😅
same here...
Soon, I’ll be ready to buy. Almost have the 20% down payment and money for moving expenses. Saw a house I like, an oldie but a real goodie, in an area I’d like to live in. Priced nicely. Taxes ok. This would be my little retirement haven. I’d do a 30 yr fixed mortgage though, because right now almost all my income is from SS and I want the payments to be at least $200 lower than my current rent so I’d have enough margin to actually enjoy retirement
If it's just superficial stuff, ugly is fine, but if it's structural stuff then avoid it unless you're a contractor. My house was a great deal and looked "ugly" but it was easy fixes like terrible paint, horrible smelly carpet, and holes in the walls. All easy fixes even though it looked horrible going in.
Put 20% down to avoid PMI. Get title Insurance. Get a survey and home inspection.
Title insurance is mandatory isn't it? Also what do you mean by survey?
My mother and dad did that. They sold their house then lived happily renting in a beautiful downsized apt right on the golf course where they played daily in the fall spring and summer. In the winter they rented in Florida. It was a great solution for them.
I agree with this advice. Have 20% down on a house. Do conventional loans only. Most corner houses I've seen look really nice. Get inspections always.
???? USDA guarantee loan, 0% down, no PMI, 103% of appraised value, cash back at closing.
People save for a down payment, and the cost rises faster than savings
my $50K home 2011, is now ~$500K.
I didn’t get an inspection, but I’m an engineer. I still got a termite inspection though. Home inspectors will miss a lot of things.
@@user-tb7rn1il3qmy termite inspector and home inspector both missed stuff :(
No more than 25% of your take home pay with a 15-year fixed rate mortgage and 20% down to avoid PMI. Basically get filthy rich before you buy any real estate within 100 miles of any city. Live in the sticks and work remote for a company working out of NYC that doesn't do any cost of living adjustments to their salary.
Yeah man the poor shouldn’t live near the rich, it’s part of life..
My CU is $0 down, no PMI.
I was thinking this exact thing
25% of take-home on 15-year fixed is not realistic. I think 40% of take-home is something the current market demands out of you. Independent how how much down payment you can muster. Unless you wanna live in a slum.
hahah same in the bay area...
I got a 30-year mortgage @ 2.75% in 2020. I am so glad I didn't wait until I could afford a 15-year loan. My home has appreciated in value by 40% in the past 4 years and interest rates are nearly triple. I agree with Dave about a lot of things, but not the 15-year loan. When faced with the choice of paying my mortgage + interest or paying someone else's mortgage + interest (renting), I'll choose to pay my mortgage, even if the interest is a little higher. I am surprised that Dave hates car leasing, but then would make a suggestion to continue renting when you could afford a fixed-rate mortgage and pay for your own equity, rather than for a landlord's.
Home ownership is much more than mortgage. You need to have money for property tax, repairs, regular maintenance (e.g., HVAC tuneup or yard work), increased utility cost over renting, insurance, and any community (HOA) fees. Renting can definitely be a better option if you do not plan to live there at least 7 years and/or if you don't have a lot of extra money for stuff other than the mortgage payment. Also, there is no longer any tax credit for mortgage interest if you take the standard deduction for taxes (90% of the public takes this deduction).
@@thomasmorrison3279 you didn't need to copy paste your other response here.
30 year is ok, it's just that 15 tends to have a lower rate. You can still prepay with a 30 and pay it off in 15.
@@georgewagner7787 Of course. My point is that a 30-year mortgage is almost ALWAYS better than renting in this current economy. Dave makes no effort to check the math for his callers in these videos, and someone waiting until they can afford the cost of a 15 year mortgage without looking at other variables are making a mistake. People chasing that ever-increasing 20% down payment as housing prices increase.
@Big-bob560 My point is that if you follow Dave's recommendations, you may miss out on opportunities. 2019-2021 allowed a lot of people the opportunity to score mortgages on incredibly low interest, and people who listened to Dave during this time and didn't buy because they couldn't afford the cost of a 15-year screwed themselves out of homeownership. My friends did this, and now they are stuck renting places for the cost of owning but with none of the equity. Dave gave bad advice, I wish he would just own it, but he won't.
Thank you so much mr Ramsey . You have literally changed my life.bless you and your family n our lord Jesus Christ keep you and yours
Thank you for your content. Peace and Blessings to you and your Family.
Best home buying advice is to look for value add opportunities, do you have an extra “bonus room” in the basement? Hire a company to install an egress window. outdated kitchen, update that and FORCE APPRECIATION. If you add value then you add money to your pocket.
This is AFTER daves advice lol, be smart and do your due diligence. Use LOGIC first and THEN emotion.
I bought my house in 2007, by 2013 I paid completely at 34.
Now I moved to the US at 45 and want to buy a house here but the market is like the wild wild West 😢.
Start over again but older...
No worries and no shame. I bought my first house at 200 years old and keep it for 30 years and here I am still here.
We bought a house with added bedroom, was 2 bedroom you would go through one bedroom to enter the next one, my clever husband put a partition wall which cost a few hundred and we now have a 3 bedroom house worth £40k more than what paid! It was worth it! It is worth more than the same house next door.
Get a survey, and bring a builder with you to view the house, pay them to really look at the house to see its potential, same with used cars.
Thank you - I´m right now in the process - thank you for your input Dave!
My husband and I haven't bought a house just yet, but it sounds like our plans are right on track. We are planning to pay at least 20% down (maybe more, depending on price at the time we decide to buy), get inspections, and get a 15 year fixed mortgage. Though, with the current interest rate, we're waiting for now.
Buy with a 30 year for now refi to a 15 year later. Take advantage of lower prices before rates come down.
Your husband must be dumb. Marry me my love I will buy a mansion. 😘
No need to get a 15 year fixed from the start. Get that 20% down and just get that 25-30yr mortgage to buy as soon as you can. Yes you pay a lot of interest in the beginning, but now you pay 100% rent. Get that foot in the door, refinance when the interest drops, do extra payments.
According to your nickname you have a better head start than I had.
I only put 10% in and didn't even have 4 digits in my savings account left just after I bought my house. I bought it on a 25yr variable mortgage, I was just out of debt, and drove a car that could (and did) let me down any time.
I'm 13.5 years in, didn't go into debt, built up and maintained an emergency fund (which I did need, my life is no fairytale), I'm renovating, I drive a car I bought brand new for cash 8 years ago, have an oldtimer in the garage, already shaved off 3 years while maintaining the same monthly payment despite interests shot up last year, and I'm right on track to have the mortgage paid fully off in 4 years (18years after I bought) or sooner (depending on interest rates) as a single woman.
That’s exactly what I did. I sold my big house for a townhouse that’s worth much more now, sell the townhouse, get another townhouse use the rest of the money to enjoy the rest of my life.
20 years fixed for 1,5%, paid 46% as down-payment. And monthly is 18% of our take-home pay. But we do think about additional payments on the principal, not an easy decision.
2.15% 20year, 33% downpayment, monthly is 19% of thp. a relaxed blessing..
btw.. i made additional payments....in 2018, 2019, 2020 before the interest rate increases. i wish i hadn't, yes i pay even less monthly , and i have saved 9k in interest, but now i wishi had gone slower 2.15 is impossible to find today...
@@NoName-to5xl more or less in the same boat. I struggle because I can get 2,6% interest on a no risk savings account and do the payments as soon as the rates of savings accounts drop below 1.5% again. That seems to be the smart choice financially. But Dave always has the non-financial arguments that also make sense. So we're doubting what to do.
In 2011, I bought an unmarketable Fannie Mae foreclosure for $50K.
Had FHA tell me beforehand what needed to be fixed to get an FHA loan.
3.5% down
$214/mo for 30 years, Auto-pay from retirement pension
Pay off at least a little more early. You will watch the interest amount drop every month.
I paid a 15 year rental off in 7 1/2 by paying repairs myself. It felt great
Yes, thank you for this. We're 30 and only have 10 years left on our 15 mortgage and we're so happy. Our parents will never be done with their mortgages.
Congratulations, you bought a house before covid. Your an exception.
Yup we bought when we were about to be homeless with a newborn and couldn't find an affordable rental. So we moved 1000 miles away and purchased a fixer upper and started over somewhere we could actually afford to live. Rather than try to stay "home" which we couldn't afford.
@@ZombiePilot7wow way to go
@@ZombiePilot7how do you purchase a home when you can't afford rent? Plus a newborn. Sounds like gloating success on your own when you're leaving out a crucial aspect. Someone helped you or you're lying.
@bt-sy5yp yes, we did have help. Our loan officer for our VA homeloan. Our VA home loan was 0% down and we were about to be homeless due to unexpected discharge from the military. But thanks for giving me the opportunity to elaborate on details that most don't care for lol
Home buying tip home inspectors at least in my State doesnt require anything special. A weekend class. I'm a licensed Plumber over 10,000 hours and stayed test to get where I'm at. I walk into houses that where inspected that have all sorts of problems. I here all the time I spent hundreds if not thousands to have it inspected. If it was me I'd hire a trades person in that field specifically a master and hire them to look at it.
If it was you, would you do the trade inspection? I hear a lot of that from pros, but finding one to commit or take the risk to say anything relating to an inspection is limited.
I found a father and son team that were local builders for 25+ years and they do home inspections. You want someone like that
Also inspection for contractors, plumber, electricians adds up
home inspections in my area are close to 800 bucks Id gladly inspect a houses plumbing for 85 dollars thats my nominal fee. Nice thing it also helps out my business grow it's a win win. As I get to meet new potential customers why wouldnt you want to do it as a potential tradesman.
Most people only compare purchase cost vs selling price to determine what “profit” they made.. let’s consider it a wash between what you’d pay in rent vs what your mortgage payment is.. now if you own the home, you’ll have at least $6k in property tax, $3500 insurance.. another $1200 in basic maintenance… that’s $10k annually,,,, at some point, you’ll need a new roof =$25k, new a/c $15k, and whatever else goes out.. I’d say, over a 15yr period, a homeowner will spend around $16k per year.. that’s $240k over 15yrs.. and I haven’t even discussed mortgage interest… so if you buy a $400k home, you’ll need to sell for around $650 - $700k just to break even.. meanwhile I’ve invested that $16k annually into my 401k.. and I do t have to stress about anything breaking, or some crazy renter…
I gross about 60-70k yearly at a railroad union job. Houses within 30 mins near work average about 400k. With interest rates 6.5% on 30 years my mortgage would be around 2900/month (tax’s and insurance)and cost about 850k minimum to term. And that’s with a 60k down payment. It’s hard to do and hopefully it gets better.
A 1 or 2 bedroom house is harder to sell as well. I had a 2 bedroom, it was hard to sell. It had nice original hardwood floors, open floor plans, covered in porch on the front, nice character! But hard to sell
I wish 25 year old josh had dave ramsey in his life lol. I still have time though so im glad i found him. If people taught this kind of personal finance in schools alot of poor children you have a better shot at life.
In my opinion, house prices will continue down as people leave the state and prices correct due to market pressure. The problem with Florida is the property taxes increased based on the boom and the cost or inability to obtain homeowners insurance. Florida's in for a rough 5 years imo.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of a broker, before I started seeing any significant results in my portfolio, been using the same Adviser and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
Such market uncertainties are the reason I don’t base my market judgements and decisions on rumors and here-says, got the best of me 2020 and had me holding worthless position in the market, I had to revamp my entire portfolio through the aid of a broker, before I started seeing any significant results in my portfolio, been using the same Adviser and I’ve scaled up 750k within 2 years, whether a bullish or down market, both makes for good profit, it all depends on where you’re looking.
How do I reach out to one? my assets have been struggling since 2022 and I’ve been holding on by the skin of my teeth.
Research and contact Sonya Lee Mitchell and follow her directions.
I just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
Corner lot if you live in the north and you have sidewalks you end up with extra snow shoveling and it can be a pain in the butt. if you have sidewalks
Overall, Dave's advice is good. However, I think people need to remember it's called PERSONAL finance. Everyone needs to do their own research and make decisions based on their own circumstances. Is 30 yrs a long time? Yes. However, so is 15 yrs, so I don't think that option should be discounted. Crunch the numbers w/ the understanding the interest rate is higher than on a 15 yr. It's also a great way to keep a buffer in case of a rainy day. When things are great, pay it like a 15 yr if you can. When things go wrong, pay your lower normal payment.
I agree but the buffer is in the baby steps, like the 3-6 month savings in case you lose your job and the 25% of your pay so it doesn’t choke you
Be careful about how you think about “own circumstances”. Yes everyone has different circumstances, but if you’re playing the victim then you’ll never get out in one piece.
This is great advice, especially if you have a mortgage with no pay off penalties
Dave’s advise would say that in order to afford the AVERAGE home in the US you’d have to make +$200K a year with no debt
The average length of home ownership is 8 years. 16% live in their home for less than 5 years or less. So if you know you will only be there a short period of time, why not get a 30 year mortgage with low monthly payments?
My next door neighbors house Same square footage as mine nice looking outside. He payed 150,000 less then me. I was shocked. Figured I overpaid. Then I saw the inside. The layout is awful. It doesn’t even make sense. My layout is beautiful and open. He will have to gut the whole interior. Or sell it for super cheap.
I hate hearing people saying they want the flexibility of moving from renting but living at that spot for decades
If followed this advice I would have been completely priced out of where I live now. I put 5% down, 30 year fixed, and the payment was 1/3 of my take home pay. My home went up 50% in 5 years and interests rates doubled over time.
What do I have to look for on buying land to build a house?
I've got £100k to invest. I want to build a nest egg for when I'm older. I want to know if it's a good idea to add all my savings into a long term ETF, set and forget Come back in 20-30 years, instead of 250-300 DCA every month. Which ETF or investment would you recommend?
How do I reach out to a financial advisor, my portfolio has been struggling since 2022 and I’ve been holding on by the skin of my teeth.
Thank you for the lead. I searched her site up and filled the form. I hope she gets back to me soon.
My advice buy a brand-new home, you got warranty and you're pretty good for 20 years for you have to do any repairs and it holds its value a lot better.
I’d love to buy a new house but in my area, decent 20 year old homes start around $600k. Similar new homes in the same neighborhood cost $900k. I would estimate the value will drop at least $200k once the home is no longer “new” AKA, as soon as you buy it. This is in Seattle, WA. No way I can afford new personally.
My home is about 50 years old. They built a brand new subdivision next to mine about 10 years ago. Those houses are falling apart. The siding fell off about half of them in multiple wind storms. Roofs torn off. Foundation issues. At least with an older home, all the settling and shotty workmanship should have been dealt with by now.
Yeah I want a new home when I’m ready to buy.
18:19 😂
Dave so dramatic sometimes. I crack up when he yells 😂😂😂
How much down to avoid PMI or how much of a mortgage gets paid off before PMI can be dropped?
Is buying a house with a property package safe or payoff property before building a house?
I want to avoid HOA on top of a mortgage.
20% down to avoid PMI.
If my rent is comparable to insurance, mortgage, Maintenance and taxes isn't a condo worth buying, rent and maintenance both increase?
Do you have any advice on getting a second loan to buy a piece of land?
The younger ramsey team members are more watchable and seem more relatable. Dave may have no debt and have made it, but he seems like a grumpy old man. He has some really good points but not all of his points are practical. He is right on being debt free.
what do you think of cooperatives?
You can get title insurance… but the title company is responsible for reporting the exact property transferred. If they fail to do so, you can certainly sue them for the damages associated with such inaccuracy.
25% take home needs to cover mortgage and expenses on a 15 year loan?
Bruh, at 7% interest rates, that is asinine. That gives a person making 80k a year a max budget of 125k.
At this point, Dave just needs to accept that the times have changed. I don't know why he is willing to die on this hill. Completely out of touch.
I would love to see where I can find the 15 years fixed rate Dave talks about
I can only get 30 years
You mean you only qualify for a 30 because you can’t afford the 15 year payment
@@Joseph-yp4sz oh that's why
Thanks
You have a 30 year mortgage, but you can pay the principal only as an additional payment each month. Treat the 30 like 15.
Not sure I agree, condo's are built crappily and the builders know that and want to download onto you, they know if the freaking windows are poor and not sealed. The roof is leaking and the parking garage is flooding. And you have that all to pay for!
Do you think Dave knows that with a 15 year loan and 25% of your take home it equals out to about $15,000-20,000 a month? Wish I was doing that well.
Gosh, I wish we had received this advice on our first home. We didn’t even get a home inspection and the people had hidden the fact that there were leaks in the roof by painting the ceiling where the leaks had been so we wouldn’t notice anything. We didn’t even know to check the AC to see if it was good or not. It was actually a piece of crap. I have a whole list of things I can tell you that were wrong with this property and now 28 years later we’re ready to sell the place and we’re finding out that it was never converted to real property. Even though we paid for it. Luckily, we were able to track down all of the engineer reports and permit to prove that it was done as well as they can come look at the house. It’s a manufactured home, but it was supposed to be converted to real property that was contingent upon us getting the loan. But now 28 years later, we find out it was never converted. We thought it was converted all along, so we did improvements to the house like we stuccoed the home to make it look like a stick built home. We also put a metal roof on and we added shiplap to the dining room, and did some tile work in the bathroom only to be told that we needed permits for all of that work, and that it should never have been added to the manufactured house because it’s not constructed to hold that kind of weight. Now our argument to them is all of this work has been on this home for over 25 years and the home is in great condition. So now we have a fight on our hands to sell this piece of crap. Luckily we have 2 acres of land. With all that said and done it only appraised at $264,000 at this point we can only sell and get the hell out of there ! We paid $79,500 28 years ago. So it wont be that big of a profit.I wish I had this advice that Davie is giving right now back in the day. But I was only 21 years old at that time so it’s very smart of this person to be asking these questions at their age. I wish Dave was around back in 1995.😂😂😂
Thissss is why he says have a good chunk saved on top of the buying costs. You need it. The horror stories I’ve heard like this. Wow
It sounds like you had a rotten deal. Always look at the bright side. It was a learning experience. What do you expect from a young man at 21 yo. I wish I bought anything at that age. Think how much money I gave to rent, lost savings and equity, and the prices are crazy high now plus the high interest.
The good thing is that you have plenty of land that maybe you can do something with it to make up for the lost opportunity.
If you can't sell it, see if you can Rent it? Maybe you can add additional mobile homes to that lot and rent them. That can turn to a sweet cash flow. I'm not sure what your situation is like maybe it's an option or maybe not. Think outside the box and see what you can get out of it.
Just don't beat yourself down.
We are actually building our dream home as I speak. We were literally ready to sell to a family when we realized if we went to Vegas that’s where we were planning on moving to because we are 45 minutes away it and it’s kind of difficult to run businesses in Vegas when you lived this far out. But when we saw that it was going to run a minimum of $700,000 to buy a piece of property in Vegas we decided it was cheaper to be owner builders and build on the existing property . On this exact same property and this existing manufactured home is allowed to stay on the property as an accessory dwelling unit and we will be able to rent it out. All in all myself and my husband didn’t do so bad buying this property. Thanks for your comment.
I did this math a few weeks ago and found buying a 500k home in my area would cost me over $1.7 million after 30 years and based off average home value increase after 30 years i could sale the home for $2 million. Potentially I would have a 250k profit before taxes(but now im homeless). On the other hand I figured what rent would cost me over 30 years it would cost me a little over $700k. The difference in cost over owning would net me over 3 million in a retirement account after 30 years. The 3 million doesn't account for inflation. Renting is obviously the way to go in this market and into the future.
Good luck. Save up 100k down payment. And a 15 year payment that is 30%. 3300 x100 /33 = 11'000 a mobth or 132k a year
OK Dave, so what do you say to a young person who lives in California where the median house costs 1.5-2M, who’s job, family, history and community are there? Renting is bad, borrowing is bad, so what to do? My adult child is a successful therapist and university professor, but can barely afford her apt rent. Do you really tell everyone to move out of California?
Just make 170k a year and have 80k down to afford the average American house price of 400k, by Dave's rules. Ok got it, so the other 95% of us just stick to renting
I don’t make 170k. 25 years old have over 20% saved up. Average house where I’m at isn’t even close to 400k. Either move somewhere else or lower your standards. Don’t put your limits on the rest of us.
@2quick524 This is the equation for the average home price in america, And a math don't add up for 95% of Americans that earn less than $175k. This isn't based on my particular situation
Dave and people like him are hoarding real estate as investment properties, contributing to the housing shortage and robbing others of the opportunity to buy modestly priced home, leaving them stuck renting from him and his investment real estate friends for the rest of their lives since they cannot keep up with constantly increasing home prices and subsequent property tax increases.
@@gonzalesg0221 the same 95% probably have 1 or 2 car payments as well. So if you applied “Dave’s rules” to every aspect, it is possible.
@@2quick524you don't live where there are jobs!!!
Do I need a home inspection for new built?
Absolutely!
i donno... Ive saw quite a few ugly houses bought for cheap and flipped into a nice looking house for a profit. Depends on if you can DIY it or not... and depends on whats ugly... somethings cant be fixed.
House hold income 300k but homes are 2M plus in Bay Area any advise, I rent at 1700 for a 2bd pre Covid price I don’t wana leave I save so much cash
Should you move if you are in your late 50's and still working? I would like to move to a better neighborhood. Please advise
Absolutely! You deserve to live on a better place that you like!
@@andratoma9834 Thank you 🙏
I love how Dave’s minions get paid well just to agree with him all the time. Yes Dave , you’re right Dave.
Nailed it 😂😂😂😂😂
if you can fix it yourself fine; if you know less just make yourself a place which is sanitary but affordable in both home costs and costs of commuting to from work
20% down and 15 years term only 25% of the income for the monthly payments INCLUDING taxes, HOA, insurance etc.
at this point, only millionaires can afford even a basic home.
When you finally make six figures, but can only afford to buy a house in Mississippi..
Come on! We would ❤ to have you!
Or louisiana
Yuck
@@charlieboy3321 your loss.
@stevenhugley4025 It's Mississippi there's nothing good there
Purchased my home in 2015 for 92K 2 Bed 2 bath. Now worth 250K mortgage payments are $970 should have it paid off in 3years.
With condos you are dealing with HOA fees and problems. If she buys a condo, then she should have an attorney read the fine print for that association so that she understands all the pros and cons. Personally, I would buy a little house on a quiet street and have on-call a very good handyman that wood can come over and take care of things. Dealing with HOA issues can be a nightmare
Best advice right now is DON'T buy if at all possible for about another 2 years..
Why? In 2 years the competition will be super high and the house you want will be available to 8 other people. Versus now where no one wants to buy a house means the competition is low.
@@tmi4507 you need to do some serious research. Look at the grafts, reports, charts, FRED, new home construction, inventory, interest rates, etc like I am and you will se that no way in hell is there anything, except another c-19 like event, that indicates prices will be anything but down, significantly down...
@@owenswearengen and they were right. Prices are going down. Look at the reports, grafts and charts. Prices are down from 2 years ago across the board but for a few places in frigging Idaho and the Midwest. AND they will continue to go down..
People who don't know how to do math think homes are more affordable now. Just because it's a good time to buy doesn't mean homes are affordable.
@@rcdyerdepends where you live. I live in southwest Miami and an old run-down house down the street just sold for $470k only to get demolished and rebuilt…
Hello there . Is it good idea to buy a home and rent it out since I am not getting any interest on my money plus I have no idea how to do any kind of other investment . ( I live in Europe) Pls help ❤
Don't ever use your real estate agent's recommendation on a home inspector.
my agent told me his inspector just checks the outlets and water faucets (as if this was a good thing.) I flat told him the inspector isn't doing a thorough inspection if that's the case.
It worked out ok for us. Our realtor’s philosophy too is that he wouldn’t want his buyer to buy junk because later he’ll hVe to sell it.
Can confirm, learned this the hard way.
You are a god at this
I think it was this video, but I liked it when he said, “these principles work when it’s good, and they work when it’s bad, they’re not situational.” The Bible works all the time.
You don’t need 20% that’s the biggest misconception! If you go conventional with 5% the PMI can drop (without having to refinance) after equity goes up ! Don’t stay out of the game because your focus on 20-% down. By the time you’re done saving 20% you will have to stay over because of how much home prices have gone up . We bought 2021 at 5% down debt free with an interest rate at 2.375% . If I would have waited I would have lucked out . My rent is the same as what people are paying for apartment.
Regarding renting, my home payment goes up every year, over $700 since I first bought it, so that goes up as well as renting costs. Also the upkeep is lots of $$$$$$$ on a home so I think that lady would be just fine renting.
Dave's calculator says I can afford a $162,000 house making $95,000/year LMAOOOOO
Sounds like a pretty nice house under a bridge for you
@@leri3365😂😂😂
How much down payment you have saved up? Zip code? How many beds/baths you looking for?
I make 130k and bought a 100k house cash, why are you laughing at people with small houses? I’m not house poor like the rest of America
Bro that’s SMART. Buy something you can pay off FAST with your income. Maybe even 250, but don’t go crazy just because you have a good income. Be humble
Thank you for the video. Great information as always. I am happy to have found Dave’s videos
18:49 Oh no, was Dave spying on me in 2020? I bought the biggest house I could at a 2.75% interest rate after paying off my old house.
Don't have a job = can't afford housing.
Have a job = can't afford housing.
So why have a job?
I’m closing in on my retirement and I’d like to move from Regina to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
A lot of folks downplay the role of advlsors until being burnt by their own emotions. I remember couple summers back, after my lengthy divorce, I needed a good boost to help my business stay afloat, hence I researched for licensed advisors and came across someone of utmost qualifications. She's helped grow my reserve notwithstanding inflation, from $275k to $850K.
This is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation.
Certainly, there are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’Melissa Terri Swayne” for about five years now, and her performance has been consistently impressive.She’s quite known in her field, look-her up.
I just looked her up on the internet and found her webpage with her credentials. I wrote her an outlining my financial objectives and planned a call with her.
But, i am considering for long term care…. When and if i get to that point i will do a reverse mortgage because long term care insurance is too expensive
So. I’m debt free but I’m 25 and hoping to get a house sometime. Where in the baby steps is saving for a down payment? After emergency fund or after investing in retirement? I feel like after investing 15% into retirement but I’m not 100% sure
3b, make your down payment outside of your 3-6 months.
Really wish you could tell me the Ramsey plan starting with no money hit bankruptcies and the do it again and become a real estate mogal
So sad how people are picking and choosing talking about “ugly house” meanwhile there’s people who just want a roof over their head and a stove to cook warm meals on but can’t afford it!!! Sad privileged world.
You're not wrong, but he's thinking about the resale value of the house if/when it's time to sell.
😅 love to hear how he mimics ppl. So funny!!
The lady at 11:58; please rent if that is what you want to do. Dont get talked into house buying if you do not want to. Invest the money another way.
I agree with most all Dave preaches. However, the 20% down to negate PMI is kind of a silly point. 20% down is a fantastic idea don't get me wrong. BUT, putting 10% down on a home and having PMI is better than missing an opportunity to buy a great deal. My PMI is $26 monthly. You can pay down the house to 20% post purchase and deal with a small PMI inconvenience for a while. It's not that big of a deal.
im a full time sing dad to a daughter and its true!!
For that lady at 58 with a house she doesn't want anymore. I think she should get therapy or counselling. Just for a month or two, to help her decompress, and separate the anxiety and fatigue out of the decision-making.
For myself, I'm looking to buy my first home.
I’ve been diligently working, saving and contributing towards early retirement and financial freedom, but since covid outbreak, the economy so far has caused my portfolio to underperform, do I keep contributing to my 401k or look at alternative sectors to meet my goals??
keep contributing to your 401K, remember you are in for the long haul, but I'd suggest you consider financial advisory
@YadaniL-g8k Did not see this coming. :)
@@wisullivit’s an ad set up by bots
Bought in 2018 at 3.15% on a FHA loan 4% down, 30 year
Duplex that I've house hacked since
Escrow all in (including PMI) is $1800. Renter pays me $1250 (i should be getting $1400+ but thats another story)
In repairs, added parking spot and remodels im $40K in (all cash flowed)
Refied in 2021 at 2.25%.
I have a written budget to have this paid off by 2035
I dont know if this is good or bad.