More Wise To Rent Or Have A Mortgage? - Twitter Question
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Dave, I love your show, I'm learning so much, thanks I wish knew about it lime 10-15 years ago, a anyway, can you please make a video about tiny home ownership? ! Pleeeease
The Dave Ramsey X Bvx.
What are good bank options that provide better opportunities for their customers?
Marlene, online banking like ALLY Bank pays a lot in compounding interest. We do checking and have a emergency fund at home and another at our local credit union. I once got 89 cents a month in interest at the Credit Union and our accounts are in 10k, 20k 5k or whatever we have all majorly invested in real estate, in the bank where ALLY pay's $8.95 for 10k a month and we also collect aluminum cans for savings. Hope my ramble didn't bore you and I hope you can look into ALLY.
The Dave Ramsey Show Dave can you bank with smaller banks instead chase or Wellsfargo if you have a lot of money?
Will it still secure your money?
Whenever someone asks me how im doing i say better than Dave deserves
They walk away from you and call the police, for kidnapping a Dave
😆
Lol
@@socketyellow3 😂
😂😂😂
Dave Ramsey's insights have been a game-changer for me! His practical approach to financial management has empowered me to take control of my money and work towards a debt-free life. The Total Money Makeover is my go-to guide, and I appreciate how he breaks down complex concepts into easy-to-follow steps.
I completely understand the impact of Dave Ramsey's wisdom on personal finance-it's transformative. While I've found success in investing, especially with the guidance of my advisor, *Jenny Pamogas Canaya,* I still appreciate the solid foundation Ramsey provides. His principles align with the core values of financial discipline. It's inspiring to see how various approaches, like Ramsey's and strategic investment planning with Jenny's expertise, can complement each other
She is highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. You can check her out online. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market
Rent inexpensively? Is there such a thing? Who has a grandma with a shack in the back yard that we can rent for $250!
It exists, it's just usually hotel-esque with a bunch of shady looking motherfuckers about, teens, or tweakers.
Increase your income Carlos Borjas
You can live with your parents for a couple of years.
@@JackieGrenda Not if your parents are dead...or alcoholics...or abusive...or divorced and married to other people...or in a nursing home, or they straight up don't want you there. There are dozens of scenarios where "living with your parents for a couple of years" is not an option, or it's an unhealthy option.
Live at a 24 hour gym keep your clothes in your astro van. Do it for 5 years.
Renting has its benefits. No upkeep, no gigantic down payment that could otherwise be used to invest, if your situation changes moving can be easier, Free utilities usually. It's not a waste as people say.
Exactly.
No Name no yard work on the weekends , no excessive trips to Lowe’s and you can relocate easier when needed
I've never had free utilities in 30+ years of renting in 4 different states and 9 different (very) large cities in the US.
It's a waste, you never build wealth
Personaly I feel the biggest issue with the renting idea is, 1 day you WILL wake up too old and unable to work, and Social Security is neither going to pay for the high rents seens in most places nor is it going to kick in, in a timely fashion. and if you have a house that is paid for in full. then you CAN live cheaply and in a manner your acustomed to on a small S.S. check. or if your lucky enough to have a retirment fund. ( but far too many don't have that) but if you start having health issues then you will run out of money quickly and rent ( and mortgages) is just something you won't be able to deal with once that starts.
The only time I have borrowed money is to buy my first house. Then after 10 years, I took money out of that mortgage and bought a rental house. Then 12 years later I took money out of the rental house to buy a small house for a rental. Today I own 3 houses and don't have to work if I choose not to. I don't know how anybody can buy a house without getting a loan.
But not everyone still is born with a house waiting on them from God, you still silly
And stupid and selfish, imagine all these people who would want a piece of you.
It's possible.. depending where you're at and how much money youre making...I bought 3 homes all cash in 5 years..I saved over half my income trucking
I don’t know what is more unrealistic
1 - Making 100k a year and buying a 100k house
2 - Paying $250 a month for Rent
3 - Saving 50k a year for 2 years back to back .
Where is this guy living ?????
Please try to make a video with a more real situation . With realistic numbers . Thanks
My friend, your whole list is unrealistic. No one I've ever met paid-off loans quick, could save that much money, and actually have some sort of life. It's hard to earn $100,000 per year....harder to find a decent home for $100,000, and even tougher to save $60,000 a year. No one on Earth can walk an inch in the next guy;s shoes. I made peace with my debts I have now, and the ones I finished because I was making myself happy while getting the things I wanted. No one has that kind of control and discipline to save....at least, no one I ever met.
I know those are totally unrealistic
Ernie CH and everyone else in this comment thread, it may seem unrealistic to some others lifestyles, but with discipline (living on beans and rice) for a short amount of time this is totally possible. May I ask what you seem to be realistic?
Renting is throwing away money
lol no, you kinda need a place to crash in order to live and save money until you can afford a house.
This is great advice if you live in an area where cheap rent is a thing or if your family situation allows you to live in a shoe box until you can afford to pay cash for a home, but for most people, it simply isn't feasible to save up enough to be able to pay in cash. That isn't to say that you shouldn't find ways to scrimp and save and do as much of a down payment as possible, and pay it off as soon as possible, and not buy more of a house than you need/can afford, but the idea of waiting to buy until you can afford to pay cash could very well leave you buying a cemetery plot and nothing more.
And renting is expensive
And the money you save looses value.
Amen
Owning a house is way more expensive than renting in most cases
@@TheSlymaster1 if it is rented and the generated income covers at least the upkeep and property taxes or it cost one less to live in it then it would to rent then it is very ok but there are a lot of ifs and caveats like renters not being guaranteed, it really boils down to one's circumstances and the situation with the house itself.
Not many people can save enough cash to buy a house in 3-5 years.
move
MOVE!! I did rent in alaska is 1800 I moved. the south 550 2 BEDROOMS! SAVE MONEY BUY HOUSE.
AND I DON'T WANT TO HEAR THERE IS NO JOBS. FROM ENGINEERS TO FIELD WORK. MISSISSIPPI HAS IT! SACRIFICE NOW.
SORRY. FOR CAPS.
I laugh when people get on here and comment "move"... some of us actually like where we live, or there may be other factors that prevent people from moving like having family that depend on us or having trouble finding a job to relocate to... just because you say there are jobs doesn't guarantee you getting hired
21skye I think most people in North America make enough income to cash flow only 1 -2 bedroom condo. Not that many new families in their 30s can cash flow a house that's in the 300k.
Ryan Cook Well, you cant afford the area right? Save up somewhere else and move back.?
I think the comparison is not fair. How can a young, starting couple save up enough money to pay cash for a home in 2-3 years? He says math backs it up, but I don't see that. I like Dave, but sometimes it's hard to follow his advice. I would have to live on the streets and eat garbage for 2-3 years to save up enough to buy a house with cash.
so do just that
+Paola Torres I'll pass, thanks for the advice.
+Serdar Tuncalı agreed.
I could maybe see it working in a low-cost housing market where both individuals are making at least $30-$40K each. If they can live off one income and save the majority of the other income, a starter house could be purchased. But, yes, it would be difficult to pay the entirety in cash in many places, at least to buy a home that I would actually want to live in. :) I think saving for 2-3 years for a nice size down payment (i.e. to avoid PMI) is a more reasonable goal in many cases. Then, once you have the home, you can work on paying it off early as your income increases, but the mortgage amount stays the same.
Paola Torres - No, that's a stupid idea. That shouldn't even pass the sniff test. Dave Ramsey has a lot of good advice, but because he seems wedded to the no-debt dogma, he has hidden himself from the truth. This is what happens every single time you put something aside from truth first, whether it's religious or otherwise. You end up believing absurd things like living off the streets and eating trash is a good idea when you can easily avoid it.
The word 'mortgage' translates from the French "death pledge" for a reason!
+Juan Primos lol
+Juan Primos it actually translates to death bet and we use the word Hypotec to describe a loan for a house.
"Death Engagment"
for me and my rental properties it translates to "second income" :D
me too..i could pay off my investment property in 10 years if i put all my cash flow towards principle on the mortage.
You never "own" the house as long as there is property tax. You're renting from a landlord or you're renting from the government :(
THANK YOU!!!!!!!!!!!!!
Property tax = $4,000 a year depending on the value of your home.
Renting = same payment the rest of your life, possibly ever increasing.
Stay out of liberal areas and your taxes won't be that high.
+Eric w Many areas have taxes $15,000 or higher. Especially in the NY/NJ area.
+LTJuni0r like I said. Stay out of liberal areas and your taxes won't be that high. Lol.
You got to be smarter about things and think ahead.
One of the many reasons I don't live in NYC
Where I live we have a senior freeze for personal property tax at about 65 years.
My PPT is $1600/year which is less than three days pay so it's affordable.
I live in an upper middle class area..
There is a cap on how much it can go up each year as well.
And I can get a 300% return if I sell my home at this point.
This weekend I was planing on financing a 30,000 vehicle and through your videos you made wiser and I'm better off fixing or even restoring my car which is payed for and it would probably cost me less than 3,000 to do so. When I mentioned to my wife what the new plan was she was just ecstatic to hear me say that and was like I told you so! I should listen to her more often.
As men, it's our ego's that want us to get a new car. A coworker is paying $750 for a Toyots Tacoma. $750 is absolutely ridiculous.
Where is this elusive $100,000 starter house? Where I live, the cheapest condos sell in the mid $250,000 range. The cheapest single-family residence you'll find is at least $400,000
BOOM!! BINGO!!
I think he is out of touch, or thinking of hick towns in shittown usa
Julie Herrick Texas, you just gotta look. My town has a mix of neighborhoods ranging from million dollar homes to 400k-500k, my neighborhood which has 300k-200k, and a nice double wide neighborhood which I believe are no more than 150k. It may take longer than 3 years, but as soon as you pay off that house, you’re free and are properly earning from your income. I assume this 100k starter home is in a less desirable town, but taste is always different.
Will Morizio meanwhile us hicks in shitsville, are pocketing enough cash to do and own whatever we want.
Go tiny
Sometimes it's about the location of the home. That old saying, Location, Location, Location.
NO. Not as far as this guy is concerned because the bible doesn't talk about location being salient. /end sarcasm This guy does this because the bible tells him to do so.
Don't forget that while the 1st couple saves for 10 years trying to buy a home in cash, the houses keep going up in price. While the 2nd couple buys the house while it is $100k and then 10 years later it is likely worth more. Sometimes a lot more. This of course depends on what market you live in.
+Dale Couture 100K for two people saving is not going to take 10 years to begin with if they are serious about it. They might have to save a little more to catch up with the house prices, but not that massively most likely!
But what should a single person do? Then this stands so true! You have to be already very rich to be able to do this!
I agree, Bought my home for 30,000 under the appraisal value because it needed a lot of work. So I actually built over $30,000 in equity in only 4 years by doing the needed repairs and upgrades.
Only if they stick that money in a 0.05% bank account or under the mattress. If they invest it then their savings will also go up in value. I get 6.5 to 8% every year with little to no effort (and none of the upkeep costs that a home requires). Even in the recession when house prices flattened (fell in some areas) I kept earning interest. My parents bought their home for about £50k in the 80s. It's now worth about £500k. Although they've put a lot of additional money into adding extensions, new furniture, decorating, repairs, etc so that isn't pure profit. They also live in an area of the UK that has gone up massively in value due to gentrification. My uncle invested roughly the same amount of cash and is now a millionaire (and bought a small house outright a few years back so has property too). So I'd argue it depends entirely on what you do with your money. If you can't invest in property then invest in something else.
The person who acquired a mortgage is paying interest rates, repairs, more insurance, property taxes, renovations, landscaping whereas the value of their home is keeping up with the rate of inflation. The person who is saving, could rent at a lower price than the mortgage, and invest the difference, at a slightly higher rate than inflation and the renters would be better off financially in the end. Rent is rarely ever as much as a mortgage payment. When taking house prices into account people often don't take the hidden costs of home ownership into account. It's like buying a car vs taking the bus. You could say the price of gas, is comparable to a monthly pass, but you aren't taking repairs, maintenance, parking, car loan interest rates, insurance, registration, tolls, and possible traffic tickets into account. Sure you might have something to sell, at the end after buying a car, but that doesn't mean it was cheaper than taking public transportation.
Dale Couture Spot on. The general historical averages, including falls, are 4% increase PA. A doubling every 10 years is often used by professionals in city areas which equates to 7% average.
We should all buy land and live in tents
susan xD that will not end well for people in Minnesota with kids. babies frozen dead.
but its way too hot to live in tents in California.....urgh I hate it here.....I want to move out so badly....
How about one person owns the land and rents to people using teepees or tents like one huge campground that gets income for upkeep...
Hey everyone seriously down hmu
my friend bought a 5k piece of land and a 3k camper.. lives happily ever
It's actually Chase that has the freedom card. And that's because they want you to chase your freedom after they own you.
$100K might get you an outhouse in today's market, if you're lucky. And there is no such thing as cheap rent anymore.
Cheap is a relative term to the area and your income.
the problem in the UK is house prices go up faster than most people can save so you have to get on the ladder asap
Where are these 250/month apartments? I looked on craigslist and the cheapest I found was 100/week. How do I find the rich old lady with a garage apartment to rent? Serious question because they aren't listed here. Seriously.....they aren't listed here. Do you just go to a rich neighborhood and start knocking on doors?
Craigslist.
j rvlvr thank you for saying that
here in Rio Hondo tx you can get a 980sq ft apartment for 650/month and my father has a client that he rents a tiny house for 300/month
inkey2 there is jobs in the surrounding cities which sits in a fork. so 8 min in any direction will take you to actual cities where the jobs are at. but in Rio Hondo there is not much. were about 3000 people :). that being said the question was where do I find a place for 250/month. that's why I shared.
inkey2 oh it's a very quiet town yes. my wife was from Harlingen and she now wants to build a house here. crime is also very low. I wish we had more to do but 8 minuets and you can find a lot to do.
Here in Dallas, renting and buying is the same price monthly and in most cases, it's more expensive to rent :-/
It depends where you living I saw in Fort Worth allot of good prices for single bed room apartments
+Moses D we are over an hour away from Ft Worth. A friend is looking for a one bedroom apartment and everywhere she looks it's more expensive than my mortgage payment :-/
+Stephanie Bogart that's true if your not single and married you should be fine if it's two income
It's the same in UK overall it's cheaper to buy property because if the mortgage is on fixed rate you will pay the same. Renting increases every year as greedy landlords put up prices. So although it's expensive to buy with down payment and legal fees it's overall better. Sometimes I think Dave in unrealistic with his viewpoint not everyone lives in a cheap area.
+Birkinbag09 Not true, I lived in Bornemouth and even though it is a tourist area, you can still find a cheap rent and save money. On top of mortgage, you also need to calculate other expenses.
Love that Dave refers to biblical wisdom and prioritises it. Who wouldn’t want financial advice from God himself?
If you make 100k then you are above the average income. Come on man.
raymond ayvaziyan so save up for 5-10 years then, you’ll still be better off in the long run not having a mortgage
@@raymondaz8145 that's why you need to live in a van or a car put a small electric cooker and a fridge in there then you can save loads of money and in a year would have enough to put a deposit on a house for yourself. (You could even get solar panels for cheap aswell) if you chose a car it would be harder but it would still be do able you would just have to use an extremely small fridge and just use a portable hob to cook everything on (you can get them for around $15-20)
I paid cash for my 2015 CR-V Touring and not only does it feel good to have a new car, but it feels amazing to have zero car payments!
wish i had that much $$$ laying around
get out of debt, save money, and don't get back into debt, and you can...
cool blog post bro!
A car is a lot cheaper than a house.
Now try doing the same thing with house lol, then let us know how long it takes you.
Usually I agree with Dave but I think it's completely unrealistic to save up cash to buy house outright. In UK rent is same price as mortgage especially in areas close to career opportunities. Just don't borrow more for a house than you can afford and have an emergency fund
+Birkinbag09 It's realistic. It's just that most people aren't patient enough and diligent enough to do it. I'm willing to do it, though.
+Brandon Daniels hope it goes well for you
Birkinbag09 Thanks! I feel like it will. I'm still single, and I'm not desperate to own a home. So, I'd rather take a no pressure, low stress route to home ownership.
+Birkinbag09 your right, but that being said u shouldnt be buying a house if you cant afford to pay rent and bills while having money go into your savings account monthly but like ppl said if u save $1000/month it will take about 15-20 yrs to buy a descent house cash, which people are not patient enough to do
+Alumnikiid yeah of course the best piece of advice I heard about buying property is do it when you are emotionally and financially ready; therefore got any frivolous spending/ lavish vacations and saved emergency fund and stable job
remember property taxes and insurance also go up.. the bank gives you the principal and interest payment dont forget taxes and insurance ..water and sewer etc. gotta have a cushion if you own a home.
I agree. When owning a home you need to have enough for the mortgage payment, property taxes, and home insurances. Also, these are debts. I am not against owning a house or mortgage but a person needs to live in his/her means.
And the rent goes up every year as well. You are already paying about a $200 difference in renting versus owning. Also remember, that these people who are buying the houses and saving, are still going to buy the house. It's not a conversation about renting your whole life versus owning house.
Thanks for watching everyone! Now go visit the Rachel Cruze RUclips Channel for life and money tips.
ruclips.net/user/RachelCruze
The Dave Ramsey Show I've heard DR say this now four times "If you had $100k and bought a $100k house". Why on earth would anybody spend all of their money/house savings and pay the house off completely? That's incredibly risky behavior as what if the market tanks or they build a Walmart next door and the house becomes worth less than what you paid for it?
The Dave Ramsey Show You're better off putting down what you can afford and find something that you've done plenty of research on that is either 1) a sweet deal or 2) will most certainly increase in real value over the long haul.
Keb Andrews
It's all about location and knowing the area.
There are several ways to rent cheaply, One way is to find somebody who has a room to rent. Which may be difficult depending on where you live, but not impossible. Or, find a couple of friends that you can go in on rent with. I know where I live, finding a 2-3 bed house for rent between 650 and 750 a month is absolutely possible, they get snatched up quick, but you can find them. The reality is, if you're expecting to find a house to rent for cheap, by yourself in an area that is really nice you're going to fail. His saying holds true, "Live like no one else, so later, you can live and give, like no one else." It means you have to be willing to bite the bullet and live somewhere that may not be "ideal" so that later you can potentially live in a home that is 100% paid for. It's not a difficult concept. The difficulty comes in having the self control/discipline to actually follow through, and save.
I live in Vancouver, and the cost of an apartment in the suburbs is $200,000+. If we saved up to buy a house over 5 years that would be $40,000 a year, that is my entire income (after taxes), so I think this depends on where you live.
Renting is fine, until you've been renting for 15 years & the homeowner or landlord tells you to vacate the property. Now you're homeless.
Then you rent a new place
I never understood how people could think that getting a mortgage loan from a bank makes them homeowners. If you owe the bank then that home isn't yours until you are done paying it completely. I leave stuff like this to the rich folk because I'm not getting a mortgage LOAN on a home unless I'm worth 200k or more.
Yeah, if the bank says you "own" the home, that's just to release them of any repairs & taxes!
depending where you live getting a mortgage can be hundreds less a month than renting. That was the case for me
You have the rights over the land and the building though. The bank can't come in and paint the walls. Once you have more equity than debt then you're good.
Gee Cee you said the honest truth, the illusion of owning , even if pay off my property I don’t truly own but at least I pay less monthly without a mortgage
M C Taylor yes since the bank owns the home they should upkeep the repairs until the house is mine !
My plan is to rent until I have enough money to build a bussines that's going to generate me income, getting a mortgage is going to put you into debt and delay any business plan, successful people take risks and build business
“I personally never borrow money” yeh... because you’re worth $55M
faceapalm! read his book
Smh uninformed
Or this is what I’m doing: I bought a home and live in it, I rented out the spare bedrooms for about the same price as the mortgage. I don’t pay rent OR the mortgage because my roommates do.
Dave's math doesn't work, though, at least in my case. I bought a place 8 years ago with a mortgage, and its value has roughly tripled in 8 years, and meanwhile my interest rate is 2.1%. NO FREAKING WAY I would be able to own the place today if I'd waited until I had the cash; I would've fallen further behind the goal of ownership every year. (By the way, I live in Hong Kong).
I've noticed that Dave is adept at math jargon. Math itself, not so much.
you should have your own talk show
Your house tripled. That's great for you but you can't expect everyone to wager the same. Your house is still less than three times what another home will be in 8 years if you bought it today with everything that you've put into the home you have.
Hong Kong?! 🤩🤩 很好!!
I bought my home 3 years ago, the value has almost doubled and I have spent almost zero money maintaining it. Doing the math. If I sold it today, dividing my net gain by the time I've been here. I've been getting paid almost 3k a month to live here..... sure beats rent.
I respect your view on many points, but due to inflation it’s almost impossible to rent a house or anything under 1k if you do find something cheap it’s in ghetto where your home will get broken into and it will bring more problems than living in a better neighborhood with less break ins and better school systems
I live in New York city how Am I suppose to pay cash for house that's $360,000 to 400,000 ? And that's a cheap house. It would take me 20 years to save that much. This idea of buying a home cash doesn't work in every city.
that's why I could never live in or near a city... the cost of living kills you... I live in a rural area and paid $60k for a 1300 sq ft 3 bedroom 2 bathroom with attached 3 car garage with separate 2 car garage converted into an efficiency apartment... and in 2012 I got it appraised for $86k... most houses around here are $100k or less
Royal D Find a way to increase income. invest in yourself.
where do u live????
This is the reality of many homes in the upper North East. I think he is talking about homes in the deep south and west.
there are houses in NYC for 360,000?!
I took the plunge this weekend. I am officially debt free after paying off everything! I have only ever rented but decided to set aside all the money I was paying towards debt (monthly) to a savings account and bought a double wide manufactured home for $15,000. It was paid in full. I bought 2 acres of land for $2,000 and officially own a home and plan to build a house on the property in the future. It gives my children and I somewhere safe to live until our home goals come to reality.
in some cases the in the 4-5 years you wait and save, the house that you waited for got 30 % more expensive!!
30 year mortgages are a bad deal. Depending on the interest rate you pay, by the end of 30 years you've paid the bank back nearly twice what the house was worth.
First of all the landlord pays for taxes and maintenance and repairs like replacing air-conditioning, plumbing etc. And as a renter you can always leave at the end of the lease scot-free. At a minimum with "ownership" normally one also has to figure in mortgage interest, property and school taxes, appliances, maintenance, repairs, lawncare and insurance. If you calculate that out it's quite a lot more than than the headache-free standard rent on a 1-2 bedroom apt. And yes the property as an investment can "appreciate" in value but it can also go down. A person may want to sell their house but that can be difficult and even great properties can stay on the market for many months leaving the owner stuck. Also, people usually only care about their "monthly" mortgage payment amount but don't figure in how much they are actually paying in interest over time: depending on interest rates a 30 year mortgage can potentially cost you three times what you thought you paid for the property. Most locales won't appreciate that amount so in reality it isn't an investment but a net loss. And if the appraised value goes up so do the taxes! Even if one owns the property outright and sighs "whew-what a relief" they're still shelling out a significant amount of cash just to live there. Financially for many it's a terrible decision but many folk have this erroneous idealized vision of what home ownership is like.
Who can rent an apartment AND pay cash for a home after 3-5 years of saving?
Especially younger people. This analysis isn't based on reality for 99% of people.
Smart people! I wasted over $100k on cars between the age of 18 and 25, with out a degree and working a regular job. I moved out when I was 19 and went back to school at 25 with no loans. If I wouldn't have been an idiot like most people that age I could have easily purchased a house in 3-5 years. I recommend all kids get a job and a bicycle or used Toyota Camry before graduating High school. Forget a 4yr degree or fancy car until you can afford them.
For most people it isn't because they are buying a fancy car and blowing money. Most people, especially kids starting out, just dont have the income to both pay for apartment rent and save enough to pay cash for a house in 3-5 years. Unless you are living rent free with parents, it just isnt realistic for most people. Maybe you can squeeze together a down payment, but yea. You would need a pretty high income to accomplish what is being talked about here.
Thats because smart people are in the minority the same way millonaires/billonaires are in the minoritym
It's really pretty easy to have a moderate income of $30-40k, save half in cash per year, and buy $100k house after 5 years.
@@jjay75 Lol ok. One, good luck living on only 10-20k total a year like you say (and this is not even accounting for taxes) and two, good luck finding a house that isnt in total disrepair and/or in a crime ridden area for 100k. This isn't 1975 anymore.
Renting would have been the correct thing to do maybe 4 years ago, but not now.
Where I live, a two bedroom is averaging $1400, but I received a mortgage quote with a monthly payment of $1000. My mortgage payment will not increase, but rent keeps increasing.
I'm not an expert in being a house owner but don't you have to pay for home insurance, property taxes, and other bills along with a mortgage?
+christianmetalpwns
Yup.
That's true Christian......but here are the advantages (1) as long as you pay the mortgage/taxes you can never be kicked out, (2)On a fixed rate mortgage your monthly payments can "never" be raised (3) Once it's paid off you are on easy street (4) "appreciation of the property". Generally, but not always, their can be decent gains in the value of the property.
To that 1k/month add about $200-$500 in property taxes, mortgage insurance(s) HOA fees (if applicable) before you take your decision.
Hi Dave, I only came to your videos a couple of days ago and it was only by chance. Now I'm hooked on your videos. Thank you for your good work brother!
most people cant afford to wait. Most people cant save up enough for a good house in a good area within a 10 year span
I have never seen rent cost less than a mortgage of the same exact house anywhere I have ever lived. Dave is assuming that the couple renting to save money for a house is renting extremely cheaply, like in a relative's garage or something. Most people don't have this option. For most people the question is simple: Do you pay MORE in rent for x house and TRY to save $ to buy a house cash. (Very unrealistic.) Or do you SAVE $ every month by getting that mortgage, take on the debt, but have more $ each month and then pay the debt off faster.
The first couple may take decades saving $ to buy a house in cash. Meanwhile, the 2nd couple spent less $ overall and had the house paid off before the 1st couple ever got their house.
Dale Couture You can't tell me that a mortgage payment plus homeowners insurance plus property taxes plus maintenance is less than rent and renters insurance for similar properties.
It often is where I live. They're making a profit.
Rent in high end markets like New York is a lot less than your monthly payments with maintenance and taxes, especially using the standard 20 per center down payment.
Rent is much cheaper than buying in most places in Australia. It swings around the other way when the property is 2-3x the average wage in price or lower
Gosh Dave I’m watching a lot of your videos from Australia and absolutely taking all the advice I can get from you , keep up the good work mate you are saving so many peoples bacon literally.
Save money..wait for the market crush and buy yourself a house. Meanwhile you can try working extra hours, living with roommates, and saving money in every possible ways.
thank you for saying this..yes, buy a house when the market is hurting..usually it takes awhile for the housing prices to drop(1-3 years once the recession begins) but just pay attention to the overall economy and unemployment rate..if it's trending downward just wait until you're confident it's pretty near the bottom and that people are selling houses cheaper. Like right now I think it's near the top of the market, you might want to save for the next 2 years(at least) before buying a house. I also suggest staying away from 30 year mortgages and if you can't pay cash then either wait or at the worst get a 15 year mortgage..if you do the math you'll see you'll save TENS or maybe HUNDREDS OF THOUSANDS of dollars this way. Finally, make saving a habit for the rest of your life.
Wish I could work ot. I work for the government and we can't work OT. We have to flex days
You Dave Ramsey are a voice of reason and only sound advice in the dense forest of the poor financial advice. There is a lot of us you influenced over the years. Thank you!
I love listening to Dave because he has such conviction. Most of these convictions make a ton of sense, but this ‘no debt’ conviction does not resonate with. I’m much more in the ‘rich dad, poor dad’ camp on this.
Debt, if used wisely, is one of the key wealth building tools, especially for those without an initial abundance of capital.
My mortgage stays the same. My friend rents and her rent goes up LITERALLY every single year.
True, but you also have to pay hidden fees like maintenance costs which can be a major cost if something like your HVAC breaks. Then you also have to spend your time maintaining the property every week which also equals a loss of freedom/money. Theres pros and cons to both.
Thing is who can save that much money to purchase a home? I'm singl living in So Cal, how can I save 50k as a down payment? it's unreasonable.
kirvyk
Move.
BlackWorldTraveler if your offering to pay for relocation and a job transfer I'll be glad to.
Your bitterness and implications are not desired. But with an attitude like that you'll get nowhere.
no one wants to move to the boonies lol
+Joe Sillaman RS exactly..there's a reason that it costs nothing to live in Tulsa 😂😂
I think he gave those numbers as an example. If you’re super commited, you can do this. I have a friend that did this. Lived on 1 income, sold everything like couches chairs cars, saved everything and invested and now they’re rich. It was worth it and it only took 2 year of living like that and rich at 5 year mark
Awesome Financial and spiritual advice...God bless you
Great video! I was just looking for new areas where I could live to low my rent and needed to hear some of these wise words. Thank you form Brazil!
This is one of the few areas where Dave is 100% out of touch with reality. Interest rates have been at an all time low for the last number of years. Maybe this advice made sense in the 80's when interest rates were ~17% but not when you can get a 15 year loan at 4 or 5%.
I understand what you’re saying, but please keep in mind that God’s word is never out of touch with reality. He says it for a reason.
@@bryantvanfossen8099 I’m confused as to why you brought up God when discussing Ramseys advice? Are you saying Dave is like God, all knowing? “He says it for a reason”, okay what’s the reason?
Save to buy a house outright in 3 years??? Yea, right. I don't agree with this one.
I just bought a house and paid off my car after a year making $30k. The key was moving from Los Angeles to Indiana. It's remarkable how cheap it is here. Granted, I also don't have kids and I don't really spend money on anything besides the necessities.
@@maxrice6990 Basically don't have kids or get married. Is that a solution?
nisuperman Duhhhhh!
@@nisuperman stay middle class. You don't have to gain wealth. He's explaining how to become remarkable. Which does require either luck or sacrifice.
@UCfD8sUq9GXzZCEdHIgGW9aQ I regretted leaving Los Angeles to Texas to do exactly what you did. I don't have kids and I'm not married, but with all the random fatal tragedies this year in the US I missed my family dearly every day and moved back to Ca. It's tough to try and be patient out here but in my mind EVENTUALLY I'll have a paid off roof and wealth by giving up 10 more years of life to add onto the savings. And at the same time eventually I won't have my family. Many people don't see this when they first set sail just like it hit me. I felt like trading 10 years of life was worth grinding the home state out for. Just wish Dave Ramsey would provide high cost of living practical tools.
I saw the housing bubble coming in 2007.
Making 8$/hr + tips (so maybe around 10$/hr)
I really wanted to buy a house while i could...
Had around 20k saved up, started saving when i was 14 or so, and put that money down.
Now just around the age of 30, i am almost done paying off the 180k loan...
Having 2-4 roommates greatly has spend up paying this thing off, i love it!
Timing is everything. Well done for being born at the right time and taking advantage of that opportunity. First was luck but second was good economic awareness. Nice one! : D
Christopher Banacka
I saw it too after seeing the tech bubble. People were getting stupid.
Spent almost 2 years looking for a cheap second home and found a great deal.
Also bought a lot of cheap stocks and ETFs that nearly tripled in 8 years.
Christopher Banacka isn't it awkward being 30 and still having roommates?
Elliot Brooke nop,,its smart
Elliot Brooke He had to humble himself big deal it worked out didn't it ?
Rent is also debt and in my area it's much cheaper to own then to rent and rent has continued to go up because the county has raised property taxes which has been passed down to the renter.
As an owner, you are paying those taxes, too.
GodGunsGuitarsGadgetsGovernment big $400 Dollars a years much cheaper then rent around my area any day..plus I have solar so my electric cost is cheap as well.
+John Doe yes I think mortgage was better for me than an apartment. My friends and siblings could afford my house payment more they could even a cheap apartment.
Sarrah Conley Conley was my Mother's maiden name....off topic but..
+John Doe lol it's my married namr
great advice! all i have to do now is find a job where i make $100k and find an old lady to rent me her garage for $250 a month
Rich people use debt to get richer all the time. Having debt and using it in a smart way is not dumb at all. If you're using debt just to buy liabilities and not assets, then yes, that is dumb.
Where I live, mortgage interests rate are very low, so you're actually not paying the bank much over the life of the mortgage, and if the property increase in value (have to buy in a good market) then it's a good investment. You can also leverage the increase in value of the property to get very low interest loans. Say the property value goes up $10,000 in a year, you can get that $10,000 from the bank at the low interest rate of your mortgage and leverage that money to make more money for you (assuming you do this and not just blow It on consumer goods of course).
Again, it really depends on what market you're in and what the bank is offering but rich people use debt to get richer all the time.
I had a rent payment of 275 a month, trying to save up for the deposit on an apartment. However, I was living in a two bedroom planted mobile home with nine other people. No way I could have lived there long enough to save up for a downpayment on a house or condo. I would have lost my mind first
That was the best video from you sir i have been watching you're videos for 2 weeks and have learn a lot have a trucking biz and was about to go for a loan tobuy a truck but i will save for 6 months to buy it cash, thank you so much
I bought a house 20 years ago for $100,000 cash and now it is valued at $250,000. Property taxes are $1000 a year and I have been retired for 20 years...
If the average house is 200k, that would mean you'd have to save over 3k per month for five years. Imposssble. I'm a nurse and I only take over about 3400 a month IF we have enough patients for me to even get all my hours. This is assuming that you have close to zero other expenses. Their MAY be a situation where you could get rent below 500 (250 is just insane) but that's a very big stretch. I like Dave but creating scenarios based out of unrealistic hypotheticals doesn't work.
The average price of a house in Auckland New Zealand is 1 million New Zealand which is around $690,000 US.
So say you could save 1500$ a month from your $3400. That's 90K Saved in 5 years, without earning any interest, investing it etc. So if you bought a 200K house, and put 90K down your Mortgage payment would only be about $500 for a 30 year, for a 15 year it would be almost $800 figuring at 3.5%. What are you paying for rent right now? I would guess more than $800 of which you'll never see again. So imagine how fast you could pay the other 110K off? So it's impossible ?
@@randomness5074 Cant forget property tax, homeowners insurance, and renovation upkeep. But, at the end of the day, you own the property. That being said I'm on your side.
@@gurutruecrimeguru1405 i hope your earnings are also on the high side in New Zealand
Dave is giving terrible advice.
"I personally would never borrow money". - says the guy who is worth 55 million dollars.
Simply ridiculous. He fails to recognize that he is far from being average.
Maybe he’s worth 55 million dollars because he doesn’t borrow money
@@danielmunch4413 Haha he did not get that rich simply by not borrowing money - just as you don't become an F1 champion by simply not crashing your car. Besides, there are just too many possible situations people can be in for such a generalisation to be considered valid. And sometimes it takes borrowing money to make more money!
In summary, Dave's statement is not relatable or even reasonable and neither is yours.
@220volt74 I did not mean to insinuate that the only reason he got Rich was not borrowing money. My point is that his financial principles including not borrowing money are most likely what got him to be so rich. Your original statement makes it sound like this is a philosophy only a rich person could have and that he’s out of touch, I disagree, I think anyone can have this philosophy and be successful,also I want to acknowledge that I understand that are many different financial strategies that work for many different kinds of people and if you want to borrow money go ahead but Dave’s plan is the only way to acquire wealth with zero risk.
Zero risk?? And if the market goes belly up, so to does you wealth.
Zero risk only exists in fantasy land.
Dave, you are the reason why I have “Financial Peace.” I watched your DVDs, and it changed my life. It planted a seed in my mind, and today I have more money than I’ve ever had in my life. I started with a mutual fund, then I studied the Stock Market and made sound investments. 90% of the stress in my life is gone, now I know how it feels to live and not just exist. Thank you!
Did you pay for the CD's? Did you budget the CD"s into your budget? If not it put you in debt and you could have watched all his videos for free on youtube. Bad move on your part.....
Even if you aren’t in the situation you learn SOMETHING every time Ramsey gives advice…
Anyone can save money. I lived in a van for a year showering at gym twice a day. I am able to purchase now. I'm holding off so I can get something nice rather than rushing to get out of a van. Nobody knew what I was doing. Good luck people.
forgedabouted you are wise
Congrats! Hope you can buy your home.
The bible says the borrower becomes a slave to the lender.
+Angie Koh The bible also commanded the genocide of thousands of people, the bible also shows where god exterminated people because he wasn't happy with his creation. I don't believe everything I read. Math is math, I don't need the bible to tell me a $300k home on a $150k income is a good idea. It all depends on what people want out of life.
It also says to stone people who work on Saturday.
also says don`t eat shrimp and that women should be silent
Angie Koh Didn't listen to these hubristic people who spend time hating a God they don't believe in...srsly 😔?...who don't actually read the Bible, take Scripture out of context to attack God's followers, and use their mockery in place of morality. Pity them, pray for them, and follow God. God's Word has all the answers for life and Godliness. Be blessed 😀.
I used to be Christian. Then I read a bit more of the book that had been selectively edited out on Sundays. If freeing slaves, eating shrimp, and laying off the genocide is "mockery" instead of "morality," you can write on my tombstone. Nobody attacked God's followers, people simply cited the Bible.
Dave, you awesome! Thanks for sharing on all your knowledge and wisdom.
This clip just answered many questions. I've known about Dave Ramsey for a long time and most of my family, friends, and co-workers have done some sort of "class" of his, but I've never really watched or listened to him before now.
I've always had the mentality of not buying anything unless I have the money to pay for it. I bought my car in full and I'm glad I never had to have a car payment (other than the initial purchase)
Started looking at houses but after hearing what Dave said about buying a house it's not within reach yet, so now I'm looking to rent a cheap apartment. Hopefully close to work so I can save some money on gas.
Median price in sydney australia where is i live is a million bucks and house values double every 10 years roughly. Dont think renting cheap out the back of some old ladies place to save up enough money to buy a house in cash is possible for me.
I'm in Sydney too and it's most definately cheaper to rent then buy right now. Besides, auction clearance rates and prices have started falling past couple months due to tighter investor loan regulations, due to the massive prevalence of interest only loans in Australia... I really wonder what Dave would say about interest only loans... not good I imagine lol
Same in London totally unrealistic
+del down side living in aus im in wa i just cant see how any of us can buy a house in cash
+del It's the same situation in Trinidad and Tobago, insane housing prices. A basic "starter's house" which is a 2 bedroom flat, is over a million dollars!
Yes, I'm in Australia, I know what you mean.
It would be nearly impossible to save the cash, and even if you did, housing prices just keep rising so you would have to save until you die.
My question is where are you living for "free" while you save? Because in Illinois rent costs more than mortgage is most cases.
Hi came across your videos by accident and love them. Is there a video about your thoughts on Wells Fargo which I have?!
hey dave love the show had a question im a trick driver and was wondering if you had any suggetions on lease to own semi would appretiate input thx
With interest rates as low as 3% for mortgages at the time this was published, I'm not sure how Ramsey could oppose a mortgage. 10-12% return on a home > 3% interest you pay. The math favors buying. He says he has the math to back it up but all he mentions is theology
because he keeps pounding the drum of the one size fits all solution of "debt bad!" kind a 101 course that never gets any deeper.
Not necessarily. You have to take inflation rates every year which average about 3%. Most people break even by the time they sell their home. That's assuming you kept up on basic maintenance of the home. If you do a major remodel and do it in a smart way then you can make a profit. .
This guy probably still lives in the 70's. However he is right on couple of things.
He seems to "forget" that rent is usury just as a mortgage is. Except the usury of a mortgage as an end date, where rent, well, that's eternal.
That’s one of the many questions that had keep me thinking for a while..
I'd like to hear real numbers. Cheapest rent in our area is $1600/month. And, the average starter house is $250,000.
It all depends on if you can find a place to rent cheaply enough. I rented for a couple years then bought a house with a 20% down payment and it will be payed off in under 5 years (total time), which is pretty good, but if I could go back I would have rented a bit longer for sure. I just don't like the feeling of owing money at all, and the slight possibility of losing my house if things went really downhill in my life. Just having a mortgage added a feeling of uneasiness that I had not considered when making my choice.
BOOM! BINGO!
Why would you feel uneasy paying a mortgage and not rent. You could still lose everything and end up on the street.
What if it goes down hill when you're renting? Maybe loose your job get evicted? Pretty much same thing lol.
it's easy to save when u making more than 6 figures
False, if you make over 30k you can definitely save. But people making that money want new iPhones, drive a car that isn’t older than 5 years. Etc etc
Arthur Montano depends on where you live. $30k is definitely not nearly enough for a lot of cities
lol 30k is min wage
We make more than that we don’t have s new car or Fancy phones or fancy anything BUT we do have medical bills... that can do more damage than any car or phone. Speak with compassion. You don’t know what others are going through.
yoy can probably sav more if u are making 6 figs or more, but u still can snowball your saving on $30k.
when i was 19 i typically always had between $400 to $800 in my checking account and that was with a car and car insurance payment. I love seeing my money in my account more than i liked new stuff
now my oldest son is 19 makes triple what i was making at his age and he is always broke. he loves spending in everything thing that he sees on tv, xbox, ps4, jewelry, iphone11, jordans, 54” 1080p flat surrounds tv (i still have a 48” plasma, works just fine) I keep trying to tell him he is wasting all his future and rainy day
I was brought up on the notion that renting is money down the drain. So I never rented and left my parents’ house and got a mortgage at 25. But thinking about it, borrowing money means paying interest, however low the interest rate.
The only place Debt has a place, its in buying real estate. I like to leverage the equity from one deal, to fund the next deal. The way I structure my deals, there is virtually no risk of overgeneralizing.
I wish he would do a video on monthly payments for things like netflix, spotify, etc. I wonder what he thinks about that?
I would rather pay for my own mortgage than someone else's mortgage, at least when I sell my home I can get something back. Can you get your rent money back when you move out? I don't think so.
You also don't have to drop tens of thousands of dollars just to get the keys for a rental. Renting is paying for a good or service it is not wasted money just like paying for food is not wasted money.
The problem is that by the time a person saves enough to buy the house , value of properly goes too high and saving is impossible. And renting is more expensive than a mortgage
Thanks Dave! You just answered my question!
Amen! God is the final authority 🙏🏼
Amen and Amen!!!
Why would you assume the rent is low?
Thank you so much Dave, God bless you
Love your show, Dave! 😊👏🏼
My rent is $350 here in Missouri. God has definitely blessed my wife and I.
Ok so if I want to buy $250 thousand dollar house you want me to save to pay for whole thing in mean time rent the whole time?That will take 15 year saving aggressively
No one asked you to buy a 250k house. As an example, assuming you and your husband rake in $100,000 a year (why else would you need a house so expensive), you can very well live off 50k for five years and and save up 250k. No it's not easy, it's not fun and waiting to have children helps. Or you're just looking for a house out of your means.
You think 200K is extravagant to buy a house? Pssh, in my area, you are lucky to get land for that.
It can be in this beautiful state of Texas. Bottom line: You don't have a right to live anywhere you want. You need to do what it takes to survive - even if that means living to your means or moving to an area you can afford.
Right? You could be paying down that house instead of giving Your landlord nonstop money. Makes me think dave has a financial stake in keeping renters renting.
@@kelseyh3996 Housing is an expense like any other. You spend "nonstop money" on food don't you?
Now imagine buying food every month, saving extra "meals" for 5-6 years, until eventually you have enough to feed your family for the rest of your life (i.e. a forever home) - never having to step foot into a grocery store ever again.
I've been devouring your channel! Thanks Dave!
you are the bomb!!! awesome word of advice.. two thumbs up for this video...
What about factoring in house value increasing? If you rent, the maths falls apart.
there isn't cheap rent :( I keep looking tho!
Thank you for your input!
Dave you often fail to mention with a mortgage you always have intrest fees taxes insurance maintenance etc to include