Renting vs. Buying a Home (2024): Why I Regret Buying
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- Опубликовано: 29 апр 2024
- Renting vs. Buying a Home: Why I Regret Buying My Dream Home
This video delves into the financial truths behind homeownership, challenging the notion that buying is always the better investment. With the current high interest rates and the unpredictable housing market, we uncover how, in many cases, renting can be the smarter financial move.
At this point I feel like it's just hard to have a roof over your head.
The video left off a few key points
1. You're getting a 5.5% return on $250k (value of home) annually vs 10% return on $50k
2. Plus with a mortgage, you are paying down the debt
3. If youre going to count mortgage payments against your profits, you have to subtract rent payments as well.
4. The down payment was $20k in this example but they subtracted 50k from profits. Also, you can use first time home buyer option and put down less.
5. I think the key is finding a home thats not sooo much more expensive that you cant save. Also, avoid huge down payments because that will take away from oportunity costs.
Love this video! I bought a house in my 20s and sold for a profit, but I put soooo much into it in maintenance. I would have been better off investing my money, and had my weekends back that I spent painting and sanding and stuff.
My parents bought a home in 1989 for $88,000 and sold it in 1999 for $89,000.
You leave out how much rent increased in that time of renting or buying. If you buy a home today in 29 years your mortgage would have gone up $2000 a year due to property taxes. Renting cost would have gone up $4,000 extra a month by that 29th year. When we bought our home in 2014 was when everyone was afraid of a massive housing crash. The mortgage with escrow was $918 a month now it is $1020. Renting has gone from $1200 to now $1850 for renting the same home. And just because you own a home doesn’t mean you can’t invest also. Simple reality 70% of renters have no investments not even retirement.
interest was higher in the 1980s you all just got to used to cheap interest. I have rented and now I own, owning is better period the end
when i bought a new home and had no kids and no repairs and had grants to buy it, it broke even. when i got a older house, had kids and had lots of repairs every year, it was around 8k in repairs per year, it was a nightmare, with a house you also do a lot of making it yours and yard work alone can be extremely expensive. other thing is when i realized that if you don’t pay taxes they will sell your house to cover the cost of it, i understood that you will never own a home, it is an illusion and kept me broke last six years.
It's one of the best videos on the housing market!
Very interesting, surprising to look at my area and come to the same conclusion. Maybe waiting isn’t that bad of an idea after all. At least till the math works in my market.
What about buying out right?
For me is the property taxes, they are just too high, because houses are worth more, here in Florida is a nightmare and I can't justify paying 9,000$ property taxes on a 380,000 house, I have to keep renting....
And another thing to think about is, if your money is in the bank and we have a depression you’re gonna lose all your money. At least it’s something tangible. Let me know your thoughts thank you.
Thanks! You mentioned something at the end of your video that resonated with me. Something to the tune of owning and renting being more of a lifestyle choice. I needed to hear it as I prepare to move back to the U.S. later this year. Even though I can purchase a home comfortably, the lifestyle I envision isn't stable enough to purchase a home unless I think I can make a profit and I do not believe it is likely within a four year time period in southwest Texas.
Buying a house is forced Savings. Most renters dont invest what the would be forced to pay on a mortgage and most gets wasted. Cheers thanks for the differing point of view
Renting = 😇
Buying = 🤬
My associate in Florida bought an unfinished house a month or two ago, and I told her it was a bad idea when she told me about it last week. She just laughed....😔Well, I tried.
I rent an apartment in Texas, currently $942/month ($11,304/yr), rent goes up every year but so does property taxes and maintenance fees for condo's. I could buy a similar condo for $149,000 which has a $691/mo maintenance fee, $3,900 property taxes plus I would lose $7599 of interest on the $149,000 that I use to buy the condo. So cost to own a condo is $19,791 vs $11,304 to rent. Renting is cheaper because I can increase my savings by $8487 a year. Rent will go up each year but so does maintenance fees & property taxes. Yes property will rise in market value most years but $8487/yr invested @ 5% interest will become over $563K over 30 years.
Yeah, but market returns aren't constant. You need to buy when prices are low so insurance and taxes aren't inflated.
I didn't plan this but here's how i got to my dream house. Bought a duplex. Lived upstairs rented the lower floor moved out 1yr later bought a second house duplex pays the fixed rate mortgage on both. 3rd property built new. Rented that house out brand new to a renter. Never lived in it not one day. Repeat as often as I dared. Always leveraging a mortgage with a renter. Out of pocket cost $1100 to start VA loan on the first duplex with tax free money made in Afghanistan on a deployment, didn't put money down that was for an inspector and motel cost waiting for closing. And still bought stocks and index funds every month since 1992. Sometimes you have to form that snowball before you climb to the top of the hill. All maintenance done by me or a team that I assembled over the years. Lastly start a management company and add all houses into different LLC's to separate for protection. Also manage other people's property at 10% and hire a manager to run it if you have a full time job. And let the portfolio create cash flow while I pay nothing on my main house and work full time. The first few years matter.
Just for reference... theres a general consensus that in Mexico is cheaper in many ways, but here the mortgage interest rate generally starts at 10%, and its been that way for decades my dudes. You sweet northern childs of summer dont know what a high interest rate is. A personal loan at a bank has like 38% interest. A car loan has like 44%... like... the only way to get a better rate is if you are a business, and even so business loans start at around 22% (less if you are super close to your bank).
That's Ramits thumbnail
Good luck paying rent when you are retired
Owning is usually better. Don’t buy such an expensive house. I want to be the owner. I don’t want to be at the mercy of a landlord or corporation
The bank still owns the home until you pay the loan off.
@@charlottaw599 legally and technically they do not own the house they own a lien on the house. Still buying is always better always unless you cannot afford to buy and most buy more than they can afford because they are not smart with money anyway.
Buying is rarely better these days. Do the math its plain to see. Likely your a realtor wanting to sell houses.
who paid you? renting is not cheaper than owning the landlord adds the taxes fees and maintenance to the rent unless they are stupid. and you build equipty even if the house prices stay the same. Also when your done paying you own for life so you only pay taxes for life which is almost always cheaper per month than rent. Who pays these people to spread lies?