Renting! In my city, rent is less than half of what the mortgage would cost. I can shove the difference into other investments and increase my wealth much faster with less stress
After 52 years in California and 5 in Alabama, I bought a house in my first year here with no issues. The experience was far better than buying property in California, which I found over-regulated and over-taxed. I wish I had moved sooner. My friend did the same but worked with an adviser, which helped him avoid the problems I faced. I regret not taking that step myself.
Your move to Alabama has been positive, especially compared to your experience in California. It’s understandable to regret not working with an adviser earlier, as it made a big difference for your friend. This experience highlights the value of proper guidance in property investments.
I've worked with a financial analyst since I started investing in stocks, which has greatly improved my returns. Just like in real estate, knowing when to buy or sell can be challenging. My adviser has helped grow my portfolio by over 90% in just over a year. I understand your regret about not having an adviser when buying property, as expert guidance can lead to better results.
Julianne Iwersen Niemann a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than 5 figures within just a year, and i have entrusted my advisor with the task of determining entry and exit points.
Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative investment strategy to effectively utilize them.
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.
Thank you for the information. I conducted my own research on google and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call.
Housing prices are unlikely to significantly decrease until there's a substantial increase in housing supply. In the USA , there's a shortage of millions of housing units, and construction isn't keeping pace. The constant demand for housing, coupled with population growth, means that even a slight price drop attracts numerous buyers who quickly absorb the available supply. I'm considering purchasing affordable houses in 2025 and possibly venturing into stock investments. When is the best time to enter the stock market? Some people say it is profitable , but others say it's risky. Any advice?
Consider investing in stocks especially during a recession . While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.
If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 65% since January. It is, in my opinion, the best way to get started in the industry right now.
If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 65% since January. It is, in my opinion, the best way to get started in the industry right now.
The housing market has always had its ups and downs, but it's true that this time feels different. Having a portfolio manager will save you a lot in the market , My portfolio currently has 200% increase last couple of months with the help of my advisor.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Sonya Lee Mitchell for about 3 years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I HATE when ppl say that mortgage rates are lower than the 50+ year average. Yea they are but the average home cost 10x the average salary now vs 2-3x the average salary back then
@@CryingOrc1follow this advise at your peril. This is how you get under water. Overpaying and then locked in. Knowing a hurricane is coming before hand, a simple threat most people can discern. A 30 year mortgage over 7% on inflated market price is that equivalent.
I can’t help but wonder what Trump's win will mean for the housing market. Typically, his policies are business-focused. I'm hoping we see postive shifts in housing prices.
From what I’ve seen, his policies generally lean toward deregulation, which might make property development more appealing to investors. Honestly, though, regardless of any short term effects, I think this is the right time for everyone to dive into the market.
It's not just housing either. Crypto is absolutely going through the roof right now. I’ve seen some insane gains over the last few months. It’s like a goldmine if you know where to look.
Same here. Between crypto and the current housing trends, I’ve made a good amount just by investing wisely. Whether it's Bitcoin or certain stocks, the returns have been pretty solid if you know how to diversify.
Rate changes aren't all that relevant. The lower the rates, the more people can afford to buy, the more bidders, the more expensive the housing. Just buy if you're ready and don't if you're not, but then you can't complain in 5 years that you should've bought back then.
Lower rates are usually tied to economic conditions in the first place, usually related to a slowing economy (lower rates spur more economic activity/borrowing and vice versa), so even if there were more bidders, it would be offset buy having less bidders anyways (due less money from slower economy). Well regardless, you should never try to time buying a home, as no one can really predict how the future will go (maybe the far future, but who knows). The rates actually have less effect on home buying than the price of the house or the mortgage you can afford (the most important). But regardless, I agree that its best to just buy a house if you can currently afford it, or if you can't, if you are willing to sacrifice your current lifestyle and take huge sanity checks every day. And if you can't afford it, just wait until you can, even if that may never happen, its probably better than being house poor for 15+ years until rent catches up to the mortgage payment. Of course, I would assume you've been investing the difference in those 15+ years.
@@rebeltheharem7028 Agreed mostly, but you can time market entry. I bought my first condo in San Diego for 77.8k in 2011 (bank liquidation of foreclosed asset). I did have to fix up a few things and buy all new appliances (people who got foreclosed and evicted took all that stuff.) It appreciated by 100k within 3 years and I would've kept it, but my employer offered to pay my closing costs when relocating me to LA, but it's ok, I rolled money into an LA condo that appreciated 65k in 3 years with some renovations, and moved down to an OC condo with that appreciation, where I'm currently at 1.99% mortgage and +250k appreciation in 5 years. Also, pro tip. Get what makes sense to you, but realize that 1br/1ba usually have a ceiling in appreciation, and 3/2 is much better because it works for a much larger pool (families, owner-occupied renting out rooms, full rental property for a family). When I sold my 1b/1ba for 415k, I don't think it would've appreciated much more, because at that price it already required 2x people making a good wage and willing to brave a tight space. It has only gone up another 35-50k since I sold it, while my place is up 5x that.
THE biggest problem in the housing market right now is PRIICES, not so much the interest rate. People who are trying to get you to buy a property right now are either trying to sell their property or working for a bank. Rates can always be changed through a re-finance in the future but the purchase price will always stay the same. Dont fall for the trap of low rates, buy when home prices are back to normal.
@@xianx1866 yes having more money makes things easier but it still doesn't justify overpaying for things. You don't get wealthy by overpaying for things.
@@JC.LC. I didn’t say anything about overpaying is a way to build wealth. It’s about the market and supply & demand that makes whatever value of things.
@@xianx1866 you gotta know when to buy. Right now the market is more inflated that it has been in a long time. Right now is a real bad time to purchase, if you are wealthy or not it doesn't change the facts.
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
“Stacy Lynn Staples” has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thank you for this tip. I must say, Desiree appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
And when the average home is 600,000? Then what? The whole point of home ownership is the lock in your most expensive line item in your monthly expenses and not have cost of housing as a line item when you retire. If you can afford a home and want to purchase one, then purchase a home.
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Get the house if you can afford it. For one, once rates get to “low” levels real estate will go back to a bidding war just like before. In California houses were easily selling for $30k over asking price. Secondly, unless you got that sweet 2% mortgage, most people won’t keep their same rate for 30 years. Refinancing is an option down the road. Lastly, renting costs are also increasing. According to Redfin YoY median rent increase was up 15% since 2020.
Total interest paid in 30 years is higher than the purchase price of the home is just insane! That’s why we paid cash for our house 14 years ago. My husband and I saved a lot to buy our home. It wasn’t easy and lots of sacrifices, but we just didn’t want to deal with paying all that interest.
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Brooke Miller for helping me achieve this
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Paying cash so interest doesn’t matter. It’s all about finding the right house. We almost pulled trigger a few times and glad we didn’t for various reasons. Now we only need a few more years in our area so won’t be committing. Many families like us are similar in our area!
In my opinion, now and in the next 6 - 12 months is a great time to buy if you need a home. Once it's clear rates have hit their bottom and the economy starts to recover, it will be too late. You won't find good deals anymore. Use this time in no man's land to make lower offers on possible homes and see if anything sticks
Thank you for your video mate….I can't recommend Shellane Maxwell enough! With her expert guidance, I successfully flipped my first property and made a profit of $80,000. She provided invaluable insights on market trends and investment strategies that truly made a difference. Thanks to her, I feel confident in my real estate investments and excited about my financial future!
She also helped me create a savings strategy that allowed me to set aside an additional $15000 a month. Now, I feel confident that I can retire five years earlier than I originally planned. If you're serious about securing your financial future, Shellane Maxwell is the one to talk to!
It's unexpected to come across her name here. When I was a novice, she provided me with guidance, teaching me the fundamental principles of trading and sharing her daily signals and strategies, her courses are superb
I just bought my 2nd home at the age of 33 and I am closing on Jan 10, 2025. 6.5 % interest rate but it's okay. I can refinance later. I am putting downpayment amounting to 45k, so I can lower my monthly payment. I like investing in real estate and I don't regret having two mortgages, I will on making my 1st home as my first rental property. For the past 5 yrs of being a homeowner, I built about $150k of equity with my first home.
We bought in Dec2022.... house 450k, 215k down (Parents helped a lot but we worked hard to save also) 235k loan 6.625%. Hoping rates keep coming down to lower our rate. We also have a no cost refi by 12/31/2025 so we'll see how low we can go before we lock in our long term rate
@@Kanafa-pb19x yup but thank for you discounting the fact that we put down 100k of our own saved up money and that their gift was a surprise that we did not factor into our purchase.
@@ryjoph89 that’s sweet and all but unfortunately putting down 100k on the average 420k home with today’s rates still results in an unaffordable monthly payment for many people. Far beyond the recommended 30% rule of thumb. Your parents must’ve helped you substantially to alleviate that for you.
@@ryjoph89 well, my mentioning of the average home price and 30% rule of thumb was in the context of most people, not you. If you made enough to comfortably afford the 30% dti of a mortgage with your 100k down payment, you wouldn’t have needed help from your parents. But if they helped you out of kindness, I’m glad it worked out for you and good on you.
Wait and buy? Basically, it is really depends on the interest rate, home value, cash flow, job security, location, etc. At this moment, I rather wait because many people may lose their jobs in the near future, then they have to sell their home or house for closure. So, get your cash ready!
I usually look up your videos for updates! Our government has no idea how people are suffering these days. I feel for people with disabilities not getting the help they deserve. Thank you Mrs Emily L Romano, imagine investing $12,000 and received $305,500.
Mrs Emily L Romano was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course from Emily L Romano.
the first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional
I have an elderly neighbor and she was telling me that her grandson (age 36) tried to buy a house a few years ago but was priced out. He is now investing that 5k per month in an employer sponsored plan and his funds are growing 3x. Yeah, I don’t get it either but his decision to not buy a home is making him wealthier than anyone in his family could have ever imagined. This idea that you can only create wealth through real estate is flawed and only worked for the boomers because homes were dirt cheap 50 years ago. That time is over.
I mostly agree. Housing is not a good 0-10 year investment. It’s simply a more stable option only if you will pay the same you would if you rented. Which is not common nowadays.
Most people don't buy a house as an investment, per se. It's because they want a house that's their own, with a private backyard and the ability to personalize to their liking. Not sharing laundry.
Not info for most people but for the few who are looking into having a house be built I'm starting this very soon. I'm in the midwest (US) looking to have a 1700 sq ft house set on a basement be built. I looked at building about a year ago and decided to wait til this year. In that one year span concrete for my project went up 10.5k in price. I knew contractors were going to get more expensive and probably material cost too so I was prepared for some of that but that concrete increase took the wind out of me. Thankfully we got an interest rate cut but still that one really stung
Thanks again Humphrey for a great explanation. Ive learned a lot about money mgmt, investing, real estate, etc from you and man I was lacking. Would love to see a similar video about buying land from you, as I've heard that lenders typically won't lend for undeveloped land
Why is it when folks are talking about how much home you can afford, do not take into account the additional ancillary fees. You mentioned a $500,000 putting 20% down. Some people do not have $100,000. Did anyone say PMI???? You failed too mention other red herrings. PROPERTY TAXES. Based upon a $500,000 home in say Maryland or San Francisco---What does that work out to? Where is the Home insurance? I can go on and on? It makes a renter think as bad as rent rates are, you are not looking at ALL the variables when it comes to the TRUE cost of home ownership. So really, Interest rates are only one factor, a major factor, but NOT the only factor in determining when is the best time to buy a home.
This is a very informative video! I'm still trying to learn the benefits of refinancing and its associated costs instead of waiting for rates to drop. A video on that would help a lot.
This is great and all. But a 50bps cut in the fed funds rate isn’t a 50bps drop in the mortgage lending market. Mortgage rates are market rates and set by the market.
Have houses gotten cheaper? Are they going to be cheaper 10yrs from now? Are they going to be cheaper when the interest rates go down? Are homes actually cheaper than they were in 2008? Nope. Even with the crash, they're more today. Inflation is constant. You should probably buy now.
@@use9669(even though the government can take it away at any time) and also you always pay property taxes on it. Home ownerships isn't really a thing. It's basically just a loan from the government 😂
@@Robert-fx3ngyeah, a short-term crash. in 2010 home prices were already higher than they were in 2007. The 2008 crash or any crash never really affected the growth of inflation on real estate, it was only temporary.
Americans need to change their mentality. Live with your parents as long as possible, retired parents can raise children instead of paying for childcare, make recipes you and your family enjoy instead of eating out just to be fancy, split bills with people to reduce costs and stop losing all your money to banks. Americans have been sold the American Dream to make it on your own and separate you from your financial and emotional support structure to remove your earnings.
The issue is that this can lead to adult babies, people that have never come out from under their parents. That don't know the value of money, don't have a work ethic, and don't think for themselves and have their parents decide everything. Not saying that all people at home suffer from this. But if you don't live out on your own, this definitely can happen.
Many people don't have amazing relationships with their parents. I have a good relationship, but not one where my partner and my parents are very comfortable with each other. Especially with a language barrier. Many others just have a bad relationship with their parents. I wish I could live at home permanently so that I could buy a house quicker. But I'm already saving a lot and should be able to buy one in a short period, so I'll be fine. I 100% support living with your parents when possible, just know that it's not possible for many.
It looks obvious that you are a neat/organized person. I like the way you explain things in simple and direct way as opposed to people who explains things in so much detail that I get lost in 10 mns. Thank you!! I love your charts comparing pros and cons!!! I also loved your telling us your own decision....after making the comparison...your telling us what you would do ...as far as buying a house. I subscribe very very rarely, but because of the reasons that I said above, I am subscribing to your channel. Your "Key factors to consider" chart was great/very helpful too!
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
It doesn’t matter much the internet rate is not high compared to the historical low. The matter is the income and home price ratio is insane. Plus the matter most is the unemployment rate which is sticking up. Home price falling doesn’t a problem with your home might be lost in foreclosure.
Its been an odd year. We were in a starter home with a locked rate of 3.1 but we also found our dream/forever home and got double what we paid for on our house we were selling. Dont like having a new higher rate but felt like with the lower competition currently and what we got it was a smart call. Hopefully i can get to a locked 5% rate within the next year. We shall see.
Home prices will always go up because the value of the dollar will always go down long term speaking. Homes now are way more expensive than in 1980. Homes in 2040 will be more expensive than they are now. Buy now, refinance later.
I live in central TX. My husband and I purchased our 2014 home in 2016 for $465K. It was originally on the market for $550K but owners needed to sell ASAP and dropped the price. We got a very good interest rate. House came with tons of upgrades and is located in a highly desirable and growing area. During the time of the housing boom in 2021, it would have gone for $900K. It has since come done a bit but we still could put it on the market for over $800K. I doubt we would actually get our asking price given the current rates. We should have it paid off in the next 1.5 years. Our intent was the sale it at that time but I think the better choice would be to keep it and enjoy living mortgage free for a few years. We will see how the market respond to Trump's policies
Savings will hit the 20% downpayment mark in February, going to start shopping then. It’s hard buying a house by yourself but I maintain it is doable with a big enough downpayment, great credit, and a decently long employment history.
If you are in Texas just wait. Every major Texas metro is building homes at a far higher rate than population growth. The state has already seen a 7% drop YTD. Next year that will continue even with rates dropping.
rates are far from the only driving factor on prices look around and you will see (with little effort - type layoffs) that many companies are closing stores and doing layoffs less jobs less buyers more sellers, the banks have maintained asking for high dollar on foreclosures that works fine for a few houses as the numbers increase some one will start to crack as they cant own that many non producing assets - its coming couldcoe hard - some economist saying this could be the worst recession since the depression
Buying a home because of a good interest rate is the same as buying a car because of a good interest rate. If either are overpriced it's a stupid decision!!!
Hi Humphrey, great fan of your work. I think there's been slight calculation error with the monthly payments. With 6.5% interest, monthly payments should be around $2500 and with 6%, it should be around $2400.
Hi Humphrey. One question I have regarding the reduction of the interest rate, can you discuss the neutral interest rate (3.5%) and what it means for an upcoming economic super cycle. Thanks very much. I enjoy your channel.
I'd like to see an analysis like this but for purchasing an investment property like a duplex. The changes in mortgage rates will most likely affect rent prices in some way or another. Would it be better to wait to purchase this property or wait? I would hate to buy a house now and then have rent prices in the area fall below what I need to pay for the property and then be in the red every month.
All about money, everything. They should lower the freaking property tax in CA, people are really having financial hardship because of the high taxes in CA inaddition to inflation
In April, we found a good deal in the area we wanted to live. Shopped around a ton and got a rate of 6.25% with no buydown…. Which at the time was quite good. Definitely looking to refi in a year or two, though.
When you move do you plan in stay in San Fran, move to a suburb, go to cheaper Cali city, or finally move to a cheaper state? -Half Moon Bay? -San Diego? -Texas (Kingwood, Round Rock, Frisco)? -Tennesee?
The funny fact is that people only focus on the interest rates and not the fact that homes doubled in price in the past 4 years. Remember interests you can change but the price you pay for a house is forever.........
When interest go down, home prices go up. That is not regional. Also, historical trend always indicate the house prices go up, especially with hyperinflation in the horizon due to our national debt brought by an incompetent government.
The nice thing about renting is (depending on the owner) you don’t have to worry about maintenance or things like the roof. Houses are a money pit especially with maintenance.
The more I look at home ownership, the more I think it's less a financial decision and more an emotional decision. Do you want to own the thing and be in it come heck or high water? Barring an extremely out of whack market, rent vs buy prices seem to be pretty close to a wash -- Yes, mortgages get cheaper over time due to inflation, but the maintenance you have to do to them gets more expensive -- as is the money you have to put down to make your mortgage comparable to rents (again, in a "normal" market). Renting, on the other hand, will get pretty expensive over time, yet the money you save -- particularly at the beginning -- can be invested to more than defray the ongoing costs of renting once your hypothetical mortgage is paid off. It's hard to argue with that moment when you ceremonially burn your mortgage and, in the blink of an eye, cut your expenses in half, but again, that's emotion. The amount the renter saved in those early years means he can easily afford to keep paying rent provided he actually invested those savings. To answer the question, I rent, and I think I'm going to keep renting. Every time I go to buy a house, I think of what that $80,000 I'm putting down on the house will be in 30 years...and I just can't pull the trigger. Home ownership simply isn't worth sacrificing that 1.8 million that the down payment will turn into if I just leave it invested for 30 years.
I had that same thought 4 years ago with my $120k. But I’m glad I decided to pull the trigger and buy a home during COVID. I got almost $500k in appreciation, locked in a 2.5% rate, and have low property tax. All that to say, it’s hard to try and time the market. Just buy when you are ready.
When you rent, your money’s going down the drain, whereas your mortgage payments are actually an investment towards your own property which appreciates.
@@chrisa8203not sure where you live but it’s impossible to buy a home with low property taxes in Southern California, where I reside. Bought my house 14 years ago in 2010 and the property taxes are now about $1,100/month. My guess is that you live in place where housing prices aren’t through the roof like Southern California. Was looking for an additional home to buy in my area in the last 3 days and am completely flabbergasted at how extremely expensive all the homes are in my city and all the surrounding areas. I know prices keep jumping up over the years, but looking at the home prices now is a real shock. The prices are really no different from price-gouging. Outrageous is the word to describe it.
Just force the fed to sell their 2 trillion in MBS overnight and raising the fed rate to 20% like Paul Volker did in the 1970s. Refinancing and buying overpriced homes that depreciate in value only makes banks wealthier.
Doesnt matter when the banks simply wont approve you for a house compared to what you make. Lower interest= more available options for a house. I make 65k and cannot afford anything in my area within a 2 hour commute due to tje high interest rate.
Sorry but this is more complicated than your economics 101 class on supply and demand. This is a topic on debt and the world is currently stretched thin.
Who says rates are going down? The FED cut 50 basis points and mortgage rates went UP 40 basis points. The FED has no control over the long end. Mortgage rates will not see the 4% handle again for many years. "Prices will go back up as rates go down" is exactly why rates will not come down.
3:29 just curious, what is the average rate, let's say, for the last 25 years or even 15years. Without the 80s ave that skewed the percentage. Thank you Hump! As always for the vid!
This year I have experienced more gains than losses in the crypto/stock market, thanks to some knowledge I acquired from my financial advisor. I have managed to flip the market
I totally understand, i have seen this too but before working with anyone you need to do your research, possibly meet them in person, my financial adviser is Gabriel Alberto William , he is not just a broker, he is a financial adviser that gives advice on any financial matters not just on stocks or crypto
I get sad every time I see you post a housing video bc I know I'll never be able to afford one. We love you too Humphrey! Subscribed since the pandemic... The way you said "And I love you"... 💀💀💀💀 sounded so awkward... hahaha
I was able to secure a 4.35% 30 year. FHA in Florida. The first transfer of closing costs happened this morning! 🎉🎉 The bank holiday yesterday held it up.😂
@ maintenance and remodeling fees, property tax; prices are just going crazy. you pay twice the price for what you get( in other words the ratio quality/price is not accurate)
@@wendystacos7447what type of loan? You can use streamlined on fha, VA and USDA and don’t forget to shop for lenders. Also compare rates apples to apples and the cost to refi. I will use a broker because they have access to multiple lenders. Last week was the best time to refi. I’ve seen lenders were offering 4.75 on VA loans. That a 3% saving. Depending on loan amount and lender you can save hundreds of thousand of dollars in monthly payments
@@wendystacos7447 I could give you the answer here, but Humphrey here is a shill for the banks, so the answer will probably be removed. I'll try though so let's see if it stays up. Banks make money on refinancing by selling you the lie that your monthly payment will be lower. Your monthly payment WILL be lower, but they make up for it in one simple way: by charging you a 2% fee that they tack on back to the principal of the amortized mortgage. This is DEVASTATING. Put this into an amortization calculator. 400k at 7.25% after 2 years is 8k of principal. Tack on a 2% (8k) fee back in, refinance at 5.25% and you just paid the bank 8k for the PRIVILEGE of paying an extra $266,084.83 in interest over the next 17 months to cut away that 8k principal again. People that don't have the money to pay extra per month in the first place, will only make minimum payments. That's refinancing. I've estimated the following: if you refinance once, you've ruined your retirement savings. If you refinance twice, you'll never pay it off and die with debt.
@@wendystacos7447 RUclips keeps shadowbanning comments. Urgh. Put this into an amortization calculator. $400k at 7.25% is 8k in principal after 24 months. Now refinance at 5.25% and you pay a 2% fee (which is the 8k you already paid off in principal). It will take you another 17 months and *$29,470.94* in interest to pay off the 8k you tacked back into the mortgage principal. That's refinancing. Imagine paying an extra 8k for the privilege to give the banks an extra 29k.
It’s better to buy now before it gets to that point. It’s better to pay a loan with money that is devalued. Rental income is going to be amazing. I know some landlords who bought before Covid are making good money renting their homes out.
@@Francisco-po1cf How is the currency you use everyday any good for anyone when it's devalued? That seems such a ludicrous thing to even say, also I own two rental properties, I'm thinking of selling to cut my monthly expenses and sell out while I still can....Hyperinflation is not good for anyone, sure assests goes up, but whats the point in having expensive assets when no one can even afford them?!?!
@@christopherlove6402 most people who bought before the inflation run up are paying a lower monthly payment and probably got pay raises since. It’s better to get a loan before inflation as payments don’t change much.
It's global thing now +2/3% to what it was. And it's a good thing.(Copium). I mean our assets apriciate better now. World speeds up. We will be good 😊. We will benefit stay healthy and wise.
please if you can buy a home , please do and buy what you can afford. the price of renting is going to jump so high because this how the system works to keep the north American dream alive.
I don't care about interest rates... have cash... and also if you hit the amortization table hard you don't have to worry about rates... vs high pricing you cant do anything about it.. you are stuck with that price for the life of the mortgage.... plus high price means more taxes also... lower price for the win... of course they don't want to do that... I wonder why ? LOL
As soon as the rate cut was done the mortgage rates went up. So ya wont be finishing this video because the rest of the video is also probably not accurate.
Are you renting, or buying? Or do you own a home? Let me know by leaving a comment!
Renting! We were thinking about buying in 2023 and I’m SO glad we didn’t. We’re waiting for the rates to go down.
living rent-free
Renting. I'm not buying at these crazy rates.
Buying a second home and rent out our current home 🤠
Renting! In my city, rent is less than half of what the mortgage would cost. I can shove the difference into other investments and increase my wealth much faster with less stress
After 52 years in California and 5 in Alabama, I bought a house in my first year here with no issues. The experience was far better than buying property in California, which I found over-regulated and over-taxed. I wish I had moved sooner. My friend did the same but worked with an adviser, which helped him avoid the problems I faced. I regret not taking that step myself.
Your move to Alabama has been positive, especially compared to your experience in California. It’s understandable to regret not working with an adviser earlier, as it made a big difference for your friend. This experience highlights the value of proper guidance in property investments.
I've worked with a financial analyst since I started investing in stocks, which has greatly improved my returns. Just like in real estate, knowing when to buy or sell can be challenging. My adviser has helped grow my portfolio by over 90% in just over a year. I understand your regret about not having an adviser when buying property, as expert guidance can lead to better results.
Sounds interesting! Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
Julianne Iwersen Niemann a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
To my own research In USA, individuals living in cars due to partial homelessness result from a complex interplay of factors. High housing costs relative to income, stagnant wages, and income inequality drive this issue. Job loss, weak social support, medical expenses, evictions, and lack of affordable housing also contribute, while systemic problems and inadequate policies further perpetuate the phenomenon.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
I've remained in touch with a financial analyst since the start of my business. Amid today's dynamic market, the key difficulty is pinpointing the right time to buy or sell when dealing with trending stocks - a seemingly simple task but challenging in reality. My portfolio has grown by more than 5 figures within just a year, and i have entrusted my advisor with the task of determining entry and exit points.
Could you guide me on how to get in touch with your advisor? My funds are being eroded by inflation, and I'm seeking a more lucrative investment strategy to effectively utilize them.
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.
Thank you for the information. I conducted my own research on google and your advisor appears to be highly skilled and knowledgeable. I've sent her an email and arranged a phone call.
Housing prices are unlikely to significantly decrease until there's a substantial increase in housing supply. In the USA , there's a shortage of millions of housing units, and construction isn't keeping pace. The constant demand for housing, coupled with population growth, means that even a slight price drop attracts numerous buyers who quickly absorb the available supply. I'm considering purchasing affordable houses in 2025 and possibly venturing into stock investments. When is the best time to enter the stock market? Some people say it is profitable , but others say it's risky. Any advice?
Consider investing in stocks especially during a recession . While recessions can be tough, they can also offer good chances to buy low and sell high in the markets if you're cautious. Just remember, this is not financial advice, but it's a good time to think about buying stocks since having cash on hand isn't always the best option.
If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 65% since January. It is, in my opinion, the best way to get started in the industry right now.
If you lack market knowledge, your best bet is to seek advice or support from a consultant or investing coach. Contacting a consultant may sound simple, but it's how I've managed to stay afloat in the market and increase my portfolio to roughly 65% since January. It is, in my opinion, the best way to get started in the industry right now.
The housing market has always had its ups and downs, but it's true that this time feels different. Having a portfolio manager will save you a lot in the market , My portfolio currently has 200% increase last couple of months with the help of my advisor.
Mind if I ask you to recommend this particular coach you using their service?
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
Impressive can you share more info?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with Sonya Lee Mitchell for about 3 years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
Thanks a lot for this suggestion. I needed this myself, I looked her up, and I have sent her an email. I hope she gets back to me soon.
I HATE when ppl say that mortgage rates are lower than the 50+ year average. Yea they are but the average home cost 10x the average salary now vs 2-3x the average salary back then
Homes are averaging larger and have better features than 50 years ago.
@@rogercvc6768so what. That's irrelevant in calculating and evaluating affordability.
@@steveh5307they are saying looking at the average home price isnt that important when u can get a smaller home for less than half that amount
@@rogercvc6768completely irrelevant in terms of affordability.
Exactly, it's all these realtors trying to spin it so you will buy a home
everybody just buy a house when you can financially/mentally afford it, this video happens every year lol
This is the answer. There is never the right time for everyone. Buy when you can. Simple.
@@CryingOrc1follow this advise at your peril. This is how you get under water. Overpaying and then locked in. Knowing a hurricane is coming before hand, a simple threat most people can discern. A 30 year mortgage over 7% on inflated market price is that equivalent.
@@CryingOrc1but the worst time in history is right now
I can’t help but wonder what Trump's win will mean for the housing market. Typically, his policies are business-focused. I'm hoping we see postive shifts in housing prices.
From what I’ve seen, his policies generally lean toward deregulation, which might make property development more appealing to investors. Honestly, though, regardless of any short term effects, I think this is the right time for everyone to dive into the market.
It's not just housing either. Crypto is absolutely going through the roof right now. I’ve seen some insane gains over the last few months. It’s like a goldmine if you know where to look.
Same here. Between crypto and the current housing trends, I’ve made a good amount just by investing wisely. Whether it's Bitcoin or certain stocks, the returns have been pretty solid if you know how to diversify.
I’ve been thinking about getting into the market, but I don’t even know where to start. Any suggestions?
If you want a good start, check out Graham David Fullerton. He’s been great for me. He’s all about smart diversification to maximize ROI.
Rate changes aren't all that relevant. The lower the rates, the more people can afford to buy, the more bidders, the more expensive the housing. Just buy if you're ready and don't if you're not, but then you can't complain in 5 years that you should've bought back then.
Lower rates are usually tied to economic conditions in the first place, usually related to a slowing economy (lower rates spur more economic activity/borrowing and vice versa), so even if there were more bidders, it would be offset buy having less bidders anyways (due less money from slower economy).
Well regardless, you should never try to time buying a home, as no one can really predict how the future will go (maybe the far future, but who knows). The rates actually have less effect on home buying than the price of the house or the mortgage you can afford (the most important).
But regardless, I agree that its best to just buy a house if you can currently afford it, or if you can't, if you are willing to sacrifice your current lifestyle and take huge sanity checks every day.
And if you can't afford it, just wait until you can, even if that may never happen, its probably better than being house poor for 15+ years until rent catches up to the mortgage payment.
Of course, I would assume you've been investing the difference in those 15+ years.
@@rebeltheharem7028 Agreed mostly, but you can time market entry. I bought my first condo in San Diego for 77.8k in 2011 (bank liquidation of foreclosed asset). I did have to fix up a few things and buy all new appliances (people who got foreclosed and evicted took all that stuff.) It appreciated by 100k within 3 years and I would've kept it, but my employer offered to pay my closing costs when relocating me to LA, but it's ok, I rolled money into an LA condo that appreciated 65k in 3 years with some renovations, and moved down to an OC condo with that appreciation, where I'm currently at 1.99% mortgage and +250k appreciation in 5 years.
Also, pro tip. Get what makes sense to you, but realize that 1br/1ba usually have a ceiling in appreciation, and 3/2 is much better because it works for a much larger pool (families, owner-occupied renting out rooms, full rental property for a family). When I sold my 1b/1ba for 415k, I don't think it would've appreciated much more, because at that price it already required 2x people making a good wage and willing to brave a tight space. It has only gone up another 35-50k since I sold it, while my place is up 5x that.
THE biggest problem in the housing market right now is PRIICES, not so much the interest rate.
People who are trying to get you to buy a property right now are either trying to sell their property or working for a bank.
Rates can always be changed through a re-finance in the future but the purchase price will always stay the same. Dont fall for the trap of low rates, buy when home prices are back to normal.
New normal?! lol… go find a way to make more money like a real person with common sense.
Prices arnt going to fall much if at all. Even if they do they will start going back up again
@@xianx1866 yes having more money makes things easier but it still doesn't justify overpaying for things. You don't get wealthy by overpaying for things.
@@JC.LC. I didn’t say anything about overpaying is a way to build wealth. It’s about the market and supply & demand that makes whatever value of things.
@@xianx1866 you gotta know when to buy. Right now the market is more inflated that it has been in a long time. Right now is a real bad time to purchase, if you are wealthy or not it doesn't change the facts.
Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market
True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
“Stacy Lynn Staples” has always been on the top of my list..She is regarded as a genius in her area and well knowledgeable about financial markets. I highly recommend you look her up if you want excellent collaboration.
Thank you for this tip. I must say, Desiree appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
@@GersderaNioerwrong
Don’t buy. Interest rates don’t matter when the housing prices are super inflated. Average home is half a million dollars. Ridiculous.
And when the average home is 600,000? Then what? The whole point of home ownership is the lock in your most expensive line item in your monthly expenses and not have cost of housing as a line item when you retire. If you can afford a home and want to purchase one, then purchase a home.
@@sportagus3600 is more than the average person can afford
People up here in Canada said this when homes were 400k now they're almost 900k average.
Okay, keep renting then. Home prices have fallen only once and demand for homes is still higher than supply by over 10M homes.
Exactly. Rediculous prices. It has to be a bubble. And bubbles pop
regardless of what this video says buy when it makes sense to you financially, ignore social factors. YOU WILL NEVER TIME IT PERFECT!
I lost over $80k when everything started to tank. Not because I was in an exchange that went belly up. I was just stupid to hold and because that's what everyone said. I'm still responsible. It just taught me to be a better investor now that I understand more of what could go wrong. It took me over two years of being in the market, I'm really grateful I found one source to recover my money, at least $10k profits weekly. Thanks Brooke Miller.
I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
Get the house if you can afford it. For one, once rates get to “low” levels real estate will go back to a bidding war just like before. In California houses were easily selling for $30k over asking price. Secondly, unless you got that sweet 2% mortgage, most people won’t keep their same rate for 30 years. Refinancing is an option down the road. Lastly, renting costs are also increasing. According to Redfin YoY median rent increase was up 15% since 2020.
Total interest paid in 30 years is higher than the purchase price of the home is just insane! That’s why we paid cash for our house 14 years ago. My husband and I saved a lot to buy our home. It wasn’t easy and lots of sacrifices, but we just didn’t want to deal with paying all that interest.
This is the right approach! Hope to have a paid off house by 35 (currently 28 and saving a ton for it)
I Hit 110k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started last month 2024. Financial education is indeed required for more than 70% of the society in the country as very few are literate on the subject. thanks to Brooke Miller for helping me achieve this
I'm surprised that you just mentioned and recommended Brooke Miller, I met her at a conference in 2018 and we have been working together ever since.
The very first time we tried, we invested $1000 and after a week, we received $5500. That really helped us a lot to pay up our bills.
She is my family's personal broker and also a personal broker in many families I'm United States, she's a licensed broker and a FINRA AGENT in United states
I'm new at this, please how can I reach her?
I just withdrew my profits a week ago, To be honest it was an amazing feeling when the profits hits my wallet I wish I could reinvest but, too much bills
I got my house at the end of 2019 with a 2.99% interest rate. I was fortunate to get it when I did.
Definitely good on you! I’ve known people who waited for a crash and they’re regretting it.
sheesh the good old days, im 27 im fucked lol
@@Francisco-po1cfmy brother
2.65% in 2017. Very lucky too
0 interest rate in 2020
Kiddos! Great video! Fast-paced, informative, accurate, and wise!!!!
Thank you for your excellence!
Paying cash so interest doesn’t matter. It’s all about finding the right house. We almost pulled trigger a few times and glad we didn’t for various reasons. Now we only need a few more years in our area so won’t be committing. Many families like us are similar in our area!
Holy Batman balls the comment section is overrun with bot scams 🤦♂️
I just report them now and then. Probably not going to do anything but I just hate scammers so much, lol
In my opinion, now and in the next 6 - 12 months is a great time to buy if you need a home. Once it's clear rates have hit their bottom and the economy starts to recover, it will be too late. You won't find good deals anymore. Use this time in no man's land to make lower offers on possible homes and see if anything sticks
agree 100%
informative as always, big H!
dude your content is amazing! very informative
It’s good for people who bought a house already since they can refinance when rates go down. However, it’s a disaster for first home buy for sure!
Thank you for your video mate….I can't recommend Shellane Maxwell enough! With her expert guidance, I successfully flipped my first property and made a profit of $80,000. She provided invaluable insights on market trends and investment strategies that truly made a difference. Thanks to her, I feel confident in my real estate investments and excited about my financial future!
She mostly interacts on Telegrams, using her name
@shellanemaxwell
She also helped me create a savings strategy that allowed me to set aside an additional $15000 a month. Now, I feel confident that I can retire five years earlier than I originally planned. If you're serious about securing your financial future, Shellane Maxwell is the one to talk to!
Her insights on market trends allowed me to buy a property just before prices surged, resulting in over $100,000 increase in value within a year
It's unexpected to come across her name here. When I was a novice, she provided me with guidance, teaching me the fundamental principles of trading and sharing her daily signals and strategies, her courses are superb
I just bought my 2nd home at the age of 33 and I am closing on Jan 10, 2025. 6.5 % interest rate but it's okay. I can refinance later. I am putting downpayment amounting to 45k, so I can lower my monthly payment. I like investing in real estate and I don't regret having two mortgages, I will on making my 1st home as my first rental property. For the past 5 yrs of being a homeowner, I built about $150k of equity with my first home.
We bought in Dec2022.... house 450k, 215k down (Parents helped a lot but we worked hard to save also) 235k loan 6.625%. Hoping rates keep coming down to lower our rate. We also have a no cost refi by 12/31/2025 so we'll see how low we can go before we lock in our long term rate
“Parents helped”
@@Kanafa-pb19x yup but thank for you discounting the fact that we put down 100k of our own saved up money and that their gift was a surprise that we did not factor into our purchase.
@@ryjoph89 that’s sweet and all but unfortunately putting down 100k on the average 420k home with today’s rates still results in an unaffordable monthly payment for many people. Far beyond the recommended 30% rule of thumb. Your parents must’ve helped you substantially to alleviate that for you.
@@Kanafa-pb19x I never mentioned how much I make so you don’t know what my 30% is… but ok
@@ryjoph89 well, my mentioning of the average home price and 30% rule of thumb was in the context of most people, not you. If you made enough to comfortably afford the 30% dti of a mortgage with your 100k down payment, you wouldn’t have needed help from your parents. But if they helped you out of kindness, I’m glad it worked out for you and good on you.
Wait and buy? Basically, it is really depends on the interest rate, home value, cash flow, job security, location, etc. At this moment, I rather wait because many people may lose their jobs in the near future, then they have to sell their home or house for closure. So, get your cash ready!
I usually look up your videos for updates! Our government has no idea how people are suffering these days. I feel for people with disabilities not getting the help they deserve. Thank you Mrs Emily L Romano, imagine investing $12,000 and received $305,500.
You're correct!! I make a lot of money without relying on the government. Investing in stocks and digital currencies is beneficial at this moment
Mrs Emily L Romano was my hope during the 'bear summer' last year. I did so many mistakes but also learned so much from it, and of course from Emily L Romano.
She must be really dedicated and well trusted for people to talk much good about
the first step to successful investing is figuring out your goals and risk tolerance either on your own or with the help of a financial professional but is very advisable you make use of a professional
I Started with $5,000 and Withdrew profits $89,000
Marry the house date the rate, you can always refinance.
I have an elderly neighbor and she was telling me that her grandson (age 36) tried to buy a house a few years ago but was priced out. He is now investing that 5k per month in an employer sponsored plan and his funds are growing 3x. Yeah, I don’t get it either but his decision to not buy a home is making him wealthier than anyone in his family could have ever imagined. This idea that you can only create wealth through real estate is flawed and only worked for the boomers because homes were dirt cheap 50 years ago. That time is over.
I mostly agree. Housing is not a good 0-10 year investment. It’s simply a more stable option only if you will pay the same you would if you rented. Which is not common nowadays.
Most people don't buy a house as an investment, per se. It's because they want a house that's their own, with a private backyard and the ability to personalize to their liking. Not sharing laundry.
Not info for most people but for the few who are looking into having a house be built I'm starting this very soon.
I'm in the midwest (US) looking to have a 1700 sq ft house set on a basement be built. I looked at building about a year ago and decided to wait til this year. In that one year span concrete for my project went up 10.5k in price. I knew contractors were going to get more expensive and probably material cost too so I was prepared for some of that but that concrete increase took the wind out of me. Thankfully we got an interest rate cut but still that one really stung
Thanks again Humphrey for a great explanation. Ive learned a lot about money mgmt, investing, real estate, etc from you and man I was lacking. Would love to see a similar video about buying land from you, as I've heard that lenders typically won't lend for undeveloped land
Why is it when folks are talking about how much home you can afford, do not take into account the additional ancillary fees. You mentioned a $500,000 putting 20% down. Some people do not have $100,000. Did anyone say PMI???? You failed too mention other red herrings. PROPERTY TAXES. Based upon a $500,000 home in say Maryland or San Francisco---What does that work out to? Where is the Home insurance? I can go on and on? It makes a renter think as bad as rent rates are, you are not looking at ALL the variables when it comes to the TRUE cost of home ownership. So really, Interest rates are only one factor, a major factor, but NOT the only factor in determining when is the best time to buy a home.
Bingo!!!
This is a very informative video! I'm still trying to learn the benefits of refinancing and its associated costs instead of waiting for rates to drop. A video on that would help a lot.
Best time is always now if you have the means, and if it's going to be a rental.
This is great and all. But a 50bps cut in the fed funds rate isn’t a 50bps drop in the mortgage lending market. Mortgage rates are market rates and set by the market.
Just the question I need answered right now!
awesome!
Have houses gotten cheaper? Are they going to be cheaper 10yrs from now? Are they going to be cheaper when the interest rates go down? Are homes actually cheaper than they were in 2008? Nope. Even with the crash, they're more today. Inflation is constant.
You should probably buy now.
And enjoy living in a house you own!
Great idea. Let me just get nearly a million dollars in the bank for my state to start
@@use9669(even though the government can take it away at any time) and also you always pay property taxes on it. Home ownerships isn't really a thing. It's basically just a loan from the government 😂
Are you claiming the housing crash never happened. I remember it happening.
@@Robert-fx3ngyeah, a short-term crash. in 2010 home prices were already higher than they were in 2007. The 2008 crash or any crash never really affected the growth of inflation on real estate, it was only temporary.
Americans need to change their mentality. Live with your parents as long as possible, retired parents can raise children instead of paying for childcare, make recipes you and your family enjoy instead of eating out just to be fancy, split bills with people to reduce costs and stop losing all your money to banks. Americans have been sold the American Dream to make it on your own and separate you from your financial and emotional support structure to remove your earnings.
The issue is that this can lead to adult babies, people that have never come out from under their parents. That don't know the value of money, don't have a work ethic, and don't think for themselves and have their parents decide everything. Not saying that all people at home suffer from this. But if you don't live out on your own, this definitely can happen.
Many people don't have amazing relationships with their parents.
I have a good relationship, but not one where my partner and my parents are very comfortable with each other. Especially with a language barrier.
Many others just have a bad relationship with their parents.
I wish I could live at home permanently so that I could buy a house quicker. But I'm already saving a lot and should be able to buy one in a short period, so I'll be fine.
I 100% support living with your parents when possible, just know that it's not possible for many.
My parents live in one of my houses. Not the other way around!
No one should expect their parents to give them free child care.
How to deal with unaffordable housing by Innovation Homes RUclips bots buying up residential properties: "Live with your parents, losers."
It looks obvious that you are a neat/organized person. I like the way you explain things in simple and direct way as opposed to people who explains things in so much detail that I get lost in 10 mns. Thank you!! I love your charts comparing pros and cons!!! I also loved your telling us your own decision....after making the comparison...your telling us what you would do ...as far as buying a house. I subscribe very very rarely, but because of the reasons that I said above, I am subscribing to your channel. Your "Key factors to consider" chart was great/very helpful too!
Amazing video, A friend of mine referred me to a financial adviser sometime ago and we got to talking about investment and money. I started investing with $150k and in the first 2 months, my portfolio was reading $274,800. Crazy right!, I decided to reinvest my profit and get more interesting. For over a year we have been working together making consistent profit.
Hi. I’ve been forced to find additional sources of income as I got retrenched. I barely have time to continue trading and watch my investments since I had my second child. Do you think I should take a break for a while from the market and focus on other things or return whenever I have free time or is it a continuous process? Thanks
@@Donnafrank-k6e However, if you do not have access to a professional like Clementina Abate Russo, quitting your job to focus on trading may not be the best approach. It is important to consider all options and seek guidance from reliable sources before making any major decisions. Consulting with an AI or using automated trading systems can also be helpful in managing investments while balancing other commitments.
@@TerriVess Oh please I’d love that. Thanks!.
@@Donnafrank-k6e Clementina Abate Russo is her name.
Lookup with her name on the webpage.
It doesn’t matter much the internet rate is not high compared to the historical low. The matter is the income and home price ratio is insane. Plus the matter most is the unemployment rate which is sticking up. Home price falling doesn’t a problem with your home might be lost in foreclosure.
“Please subscribe, and I love you” laying it on kinda thick there Humphrey 😉😂
Got to, man! Lol
@@humphrey Reminds me of "Welcome to Costco, I Love You"
Great breakdown of the pros and cons!
Its been an odd year. We were in a starter home with a locked rate of 3.1 but we also found our dream/forever home and got double what we paid for on our house we were selling. Dont like having a new higher rate but felt like with the lower competition currently and what we got it was a smart call. Hopefully i can get to a locked 5% rate within the next year. We shall see.
Home prices will always go up because the value of the dollar will always go down long term speaking. Homes now are way more expensive than in 1980. Homes in 2040 will be more expensive than they are now. Buy now, refinance later.
The best is : buy and renovat while you live inside... Yes it sucks, but it's the best reward
I live in central TX. My husband and I purchased our 2014 home in 2016 for $465K. It was originally on the market for $550K but owners needed to sell ASAP and dropped the price. We got a very good interest rate. House came with tons of upgrades and is located in a highly desirable and growing area. During the time of the housing boom in 2021, it would have gone for $900K. It has since come done a bit but we still could put it on the market for over $800K. I doubt we would actually get our asking price given the current rates. We should have it paid off in the next 1.5 years. Our intent was the sale it at that time but I think the better choice would be to keep it and enjoy living mortgage free for a few years. We will see how the market respond to Trump's policies
Savings will hit the 20% downpayment mark in February, going to start shopping then. It’s hard buying a house by yourself but I maintain it is doable with a big enough downpayment, great credit, and a decently long employment history.
If you are in Texas just wait. Every major Texas metro is building homes at a far higher rate than population growth. The state has already seen a 7% drop YTD. Next year that will continue even with rates dropping.
rates are far from the only driving factor on prices look around and you will see (with little effort - type layoffs) that many companies are closing stores and doing layoffs less jobs less buyers more sellers, the banks have maintained asking for high dollar on foreclosures that works fine for a few houses as the numbers increase some one will start to crack as they cant own that many non producing assets - its coming couldcoe hard - some economist saying this could be the worst recession since the depression
Buying a home because of a good interest rate is the same as buying a car because of a good interest rate. If either are overpriced it's a stupid decision!!!
Thats a dumb comparison. Cars depreciate while houses appreciate.
please delete your comparation asap. A car is not an investment , its more a liability and debt with no return
Very good advise with much thanks!
Hi Humphrey, great fan of your work.
I think there's been slight calculation error with the monthly payments. With 6.5% interest, monthly payments should be around $2500 and with 6%, it should be around $2400.
Hi Humphrey. One question I have regarding the reduction of the interest rate, can you discuss the neutral interest rate (3.5%) and what it means for an upcoming economic super cycle. Thanks very much. I enjoy your channel.
I'd like to see an analysis like this but for purchasing an investment property like a duplex. The changes in mortgage rates will most likely affect rent prices in some way or another. Would it be better to wait to purchase this property or wait? I would hate to buy a house now and then have rent prices in the area fall below what I need to pay for the property and then be in the red every month.
It’s about the price and interest rate. Both need to go down
We bought our first home in 2008 for $95k now buying a new one and renting our current home 🏡
Date the rate and marry the House price. Why? Because the price is of the House will never Change-Right?
All about money, everything. They should lower the freaking property tax in CA, people are really having financial hardship because of the high taxes in CA inaddition to inflation
very few people keep the mortgage for more than 7 years, it's rare that the full cost of the mortgage will be paid to lender
They cut rates...mortgage rates went up....
What about from an investment perspective? Like buying my first house, living in it, adding more value to it, then rent it out or sell it later
In April, we found a good deal in the area we wanted to live. Shopped around a ton and got a rate of 6.25% with no buydown…. Which at the time was quite good. Definitely looking to refi in a year or two, though.
Im mainly saving a bit more just because you never know with this economy. Great video
When you move do you plan in stay in San Fran, move to a suburb, go to cheaper Cali city, or finally move to a cheaper state?
-Half Moon Bay?
-San Diego?
-Texas (Kingwood, Round Rock, Frisco)?
-Tennesee?
The funny fact is that people only focus on the interest rates and not the fact that homes doubled in price in the past 4 years. Remember interests you can change but the price you pay for a house is forever.........
When interest go down, home prices go up. That is not regional. Also, historical trend always indicate the house prices go up, especially with hyperinflation in the horizon due to our national debt brought by an incompetent government.
The nice thing about renting is (depending on the owner) you don’t have to worry about maintenance or things like the roof. Houses are a money pit especially with maintenance.
The more I look at home ownership, the more I think it's less a financial decision and more an emotional decision. Do you want to own the thing and be in it come heck or high water? Barring an extremely out of whack market, rent vs buy prices seem to be pretty close to a wash -- Yes, mortgages get cheaper over time due to inflation, but the maintenance you have to do to them gets more expensive -- as is the money you have to put down to make your mortgage comparable to rents (again, in a "normal" market). Renting, on the other hand, will get pretty expensive over time, yet the money you save -- particularly at the beginning -- can be invested to more than defray the ongoing costs of renting once your hypothetical mortgage is paid off.
It's hard to argue with that moment when you ceremonially burn your mortgage and, in the blink of an eye, cut your expenses in half, but again, that's emotion. The amount the renter saved in those early years means he can easily afford to keep paying rent provided he actually invested those savings.
To answer the question, I rent, and I think I'm going to keep renting. Every time I go to buy a house, I think of what that $80,000 I'm putting down on the house will be in 30 years...and I just can't pull the trigger. Home ownership simply isn't worth sacrificing that 1.8 million that the down payment will turn into if I just leave it invested for 30 years.
I’ve been having similar thoughts.
I had that same thought 4 years ago with my $120k. But I’m glad I decided to pull the trigger and buy a home during COVID. I got almost $500k in appreciation, locked in a 2.5% rate, and have low property tax. All that to say, it’s hard to try and time the market. Just buy when you are ready.
When you rent, your money’s going down the drain, whereas your mortgage payments are actually an investment towards your own property which appreciates.
@@chrisa8203not sure where you live but it’s impossible to buy a home with low property taxes in Southern California, where I reside. Bought my house 14 years ago in 2010 and the property taxes are now about $1,100/month. My guess is that you live in place where housing prices aren’t through the roof like Southern California. Was looking for an additional home to buy in my area in the last 3 days and am completely flabbergasted at how extremely expensive all the homes are in my city and all the surrounding areas. I know prices keep jumping up over the years, but looking at the home prices now is a real shock. The prices are really no different from price-gouging. Outrageous is the word to describe it.
Buy now, refi later. Prices will go back up as rates go down. Unless the supply of homes miraculously goes up, prices will remain elevated.
Just force the fed to sell their 2 trillion in MBS overnight and raising the fed rate to 20% like Paul Volker did in the 1970s. Refinancing and buying overpriced homes that depreciate in value only makes banks wealthier.
Yeah let me first get nearly a million to buy one in my area lol...
Doesnt matter when the banks simply wont approve you for a house compared to what you make. Lower interest= more available options for a house. I make 65k and cannot afford anything in my area within a 2 hour commute due to tje high interest rate.
Sorry but this is more complicated than your economics 101 class on supply and demand. This is a topic on debt and the world is currently stretched thin.
Who says rates are going down? The FED cut 50 basis points and mortgage rates went UP 40 basis points. The FED has no control over the long end. Mortgage rates will not see the 4% handle again for many years. "Prices will go back up as rates go down" is exactly why rates will not come down.
Can we get a video on home owner insurance prices and how they have drastically risen.
Brah the property tax on that home are atleast 10k where TH are you getting 2923 that house atleast 3600 with that down payment and interest
I’m sorry the payment is higher. Did u take into account property taxes ?
3:29 just curious, what is the average rate, let's say, for the last 25 years or even 15years. Without the 80s ave that skewed the percentage.
Thank you Hump! As always for the vid!
This year I have experienced more gains than losses in the crypto/stock market, thanks to some knowledge I acquired from my financial advisor. I have managed to flip the market
I have seen something like this on countless videos and i find it misleading. I do not trust most advisors as the last time I did, it didn't end well
I totally understand, i have seen this too but before working with anyone you need to do your research, possibly meet them in person, my financial adviser is Gabriel Alberto William , he is not just a broker, he is a financial adviser that gives advice on any financial matters not just on stocks or crypto
Okay, how do I get in touch with him?
look his name up online, please do your research, he is very good at what he does and has been in various financial market interviews
Please keep renting. As a landlord, I encourage people to wait....forever
Facts. Keep watching people like Micheal Bordinaro and real estate mindset.
It'd take me dayyyys to report all the bots/spam in these finance RUclipsrs comment sections. RUclips needs to step in.
I get sad every time I see you post a housing video bc I know I'll never be able to afford one. We love you too Humphrey! Subscribed since the pandemic... The way you said "And I love you"... 💀💀💀💀 sounded so awkward... hahaha
Technically you can, just not in California or New York. lol...housing in other states remain fairly affordable
Rates are not dropping.. since the rate cut rates are up considerably.
Just bought our house today. Interest rate 3.43% 10 year fixed.
Happy to have bought it now
I was able to secure a 4.35% 30 year.
FHA in Florida.
The first transfer of closing costs happened this morning! 🎉🎉
The bank holiday yesterday held it up.😂
Holy smokes, you guys are getting amazing rates! Didn't think anybody was getting under 5% these days.
Who did y'all get your loan with??
@@jinlu4 I live in the Netherlands that might help for me
@@lars9518 Damn I'm jealous. Thanks for sharing!
Depends, is the answer. Local market movements will give you the answer
Yes!
Best answer.
Renting, we were about to buy in 2022 and I’m so glad we did not; that could have been the worst decision ever😊
Why would that be the worst decision?
@ maintenance and remodeling fees, property tax; prices are just going crazy. you pay twice the price for what you get( in other words the ratio quality/price is not accurate)
I am looking for a house but the houses in the market are garbage old houses and highly priced too. @@rimounettechannel6085
@@rimounettechannel6085thanks so much for the reply.
Buy at least one home a year
🥃🎩
Humphrey I need help - I bought a home last year at 8% which is brutal. Can you do a video on refinancing? Thank you!
Just abandon it. Refinancing is a ripoff.
@@ret4kind how is it a ripoff?
@@wendystacos7447what type of loan? You can use streamlined on fha, VA and USDA and don’t forget to shop for lenders. Also compare rates apples to apples and the cost to refi. I will use a broker because they have access to multiple lenders. Last week was the best time to refi. I’ve seen lenders were offering 4.75 on VA loans. That a 3% saving. Depending on loan amount and lender you can save hundreds of thousand of dollars in monthly payments
@@wendystacos7447 I could give you the answer here, but Humphrey here is a shill for the banks, so the answer will probably be removed. I'll try though so let's see if it stays up. Banks make money on refinancing by selling you the lie that your monthly payment will be lower. Your monthly payment WILL be lower, but they make up for it in one simple way: by charging you a 2% fee that they tack on back to the principal of the amortized mortgage. This is DEVASTATING. Put this into an amortization calculator. 400k at 7.25% after 2 years is 8k of principal. Tack on a 2% (8k) fee back in, refinance at 5.25% and you just paid the bank 8k for the PRIVILEGE of paying an extra $266,084.83 in interest over the next 17 months to cut away that 8k principal again.
People that don't have the money to pay extra per month in the first place, will only make minimum payments. That's refinancing.
I've estimated the following: if you refinance once, you've ruined your retirement savings. If you refinance twice, you'll never pay it off and die with debt.
@@wendystacos7447 RUclips keeps shadowbanning comments. Urgh. Put this into an amortization calculator. $400k at 7.25% is 8k in principal after 24 months. Now refinance at 5.25% and you pay a 2% fee (which is the 8k you already paid off in principal). It will take you another 17 months and *$29,470.94* in interest to pay off the 8k you tacked back into the mortgage principal. That's refinancing. Imagine paying an extra 8k for the privilege to give the banks an extra 29k.
Were going into hyperinflation; they say sometime in 2040, maybe even earlier. Why would they cut interest but not bother to cut spending?
It’s better to buy now before it gets to that point. It’s better to pay a loan with money that is devalued. Rental income is going to be amazing.
I know some landlords who bought before Covid are making good money renting their homes out.
@@Francisco-po1cf How is the currency you use everyday any good for anyone when it's devalued? That seems such a ludicrous thing to even say, also I own two rental properties, I'm thinking of selling to cut my monthly expenses and sell out while I still can....Hyperinflation is not good for anyone, sure assests goes up, but whats the point in having expensive assets when no one can even afford them?!?!
@@christopherlove6402 most people who bought before the inflation run up are paying a lower monthly payment and probably got pay raises since. It’s better to get a loan before inflation as payments don’t change much.
7.439% 30 year interest rate as of today oct. 29th!! Theres no way people will buy homes at this price with anything kess than 40% downpayment
It's global thing now +2/3% to what it was.
And it's a good thing.(Copium). I mean our assets apriciate better now. World speeds up.
We will be good 😊. We will benefit stay healthy and wise.
I’m calling it now, rates are going back down to 0 within the next 3 years.
please if you can buy a home , please do and buy what you can afford. the price of renting is going to jump so high because this how the system works to keep the north American dream alive.
I bought in Japan 14 years ago with an interest rate of 1.19%
Japan housing is affordable anyway...most people rather stay as a tenants because of the laws protecting them against price gouging by the landlords.
@@rubiirae this is good to know. US should follow it
The only thing about real estate in Japan is housing doesn’t appreciate, land does. However where I live you can rent out to military
MTG Rates are nowhere near 6.00% if you aren’t putting 20%+ down Conventional.
is the 400k loan 30 year or 15 year?
I don't care about interest rates... have cash... and also if you hit the amortization table hard you don't have to worry about rates... vs high pricing you cant do anything about it.. you are stuck with that price for the life of the mortgage.... plus high price means more taxes also... lower price for the win... of course they don't want to do that... I wonder why ? LOL
As soon as the rate cut was done the mortgage rates went up. So ya wont be finishing this video because the rest of the video is also probably not accurate.
why didn't you mention the fact that 30 year rates went up after the fed cut rates in September?
Why would you choose to live in San Francisco? How can anyone take you seriously?
Why do you plan to buy next year if you say it'll cost you double?