If Nobody Can Afford A Home... Who's Going To Buy Them?
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Fewer young people than ever before are going to be able to buy a house in their lifetime, and at the same time homes are getting more expensive every year… But if nobody can afford to buy a house then how do they keep getting more expensive?
A family home should be the bedrock of your financial life, it gives you somewhere to live while building up equity in a place that you can one day call your own. Owning a home with a thirty-year mortgage is cheaper out of pocket every month in most cities than renting, so if you can buy your own home, you will be richer now and richer in the future.
You already know this, but if you are in the seventy-five [75%] of my audience that doesn’t own a home it’s probably because you can’t afford one. According to a report by Redfin only twenty one percent [21%] of homes that went on sale in 2022 were considered affordable, that’s down for SIXTY percent [60%] of homes on sale in 2021. That means in just one year two thirds of ALL affordable housing became too expensive for the average American.
The team conducting this survey concluded that housing affordability is at its lowest point in history. But what’s the end game here? If people can’t afford a home, then house prices can’t go up anymore… Right? Wrong… I don’t want to make another one of those stupid finfluencer videos about how the housing market is going to crash in three point five days but there are three reasons why it could get a lot worse before it gets better. The first reason is that houses do not need to be affordable for you to buy one. If you think that can’t make sense, there is an entire industry working to make it true. You don’t save money to buy a house, you save money for a down payment. Wages have not kept up with house prices but a twenty percent [20%] down payment only grows at one fifth [1/5th] the rate in absolute terms so people are still able to get into the market. According the Zillow the average home sold in America in 2020 traded for two hundred and thirty thousand dollars [$230,000]. At the start of 2023 the average home price was THREE hundred and thirty thousand dollars [$330,000] a jump of one hundred thousand dollars [$100,000] in less than three years.
According to Forbes the average American makes a salary of fifty-nine thousand dollars BEFORE tax [$59,428] after federal tax and FICA that leaves them with a take home of forty-nine thousand dollars [$49,000]. If this average person saved a ridiculous SEVENTY percent [70%] of their take home pay, to buy a house they would be just as far away from their goal after three years because the price of the average house grew just as fast as their savings. The average home earns as much as the average person. But most people only save for a down payment so seventy percent [70%] becomes fourteen percent [14%] or seven percent [7%] if it’s a dual income household where the other partner also earns the average salary.
That still a major savings commitment when fifty seven percent [57%] of American can’t afford a one thousand dollar [$1,000] without taking on debt. Fourteen percent [14%] of your take home pay should be more manageable than seventy percent [70%] but remember this is ONLY how much you would need to save JUST to keep up with price increases, this doesn’t actually get you any closer to your goal of buying a home. Lenders and banks with a vested interest in real estate assets across the country know this is still too hard for most families who also need to pay for food, rent and other essentials that are also outpacing wages. So they have moved the goal post.
A report by the national Association of Realtors found that the average down payment for a first home buyer was just SEVEN percent [7%] and the average down payment for a REPEAT purchaser that has had time to build equity in their previous home was only seventeen percent [17%].
Well, it’s time to learn How Money Works to find out if this circus really can go on forever.
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Thanks for the video! Glad the hard work is being rewarded! Keep killing it!
Charging interest rate is a tool to exploit the masses...it is a virtually printed money, does not cost anything other than feeding the bankers-parasites...!
Hey I know you do the “mistakes” on purpose to increase engagement. But this video had too many, to the point where it feels amateur and I’m considering unsubscribing. I’m a big fan of the vids in general, but please limit the mistakes to one or two. Otherwise it just gets annoying and unprofessional-ish
It should be illegal to speculate on homes.
@@matthewdancz9152 Exactly. Mortgaged residences for private ownership should be off limits to institutional investors. There are tons of apartment buildings and commercial property they can play with. Real capitalism can only function if we all have a relatively even start. When a group of a few thousand individuals can own over 20% of all private residences we are no longer capitalism but modern feudalism. They own our homes, they own our jobs, and eveything else in between. I don't like being a serf perpetually in debt, working for the same people to whom I have pay that debt, yet still be in debt to them my whole life. This is where we're heading.
My biggest financial mistake was not investing in a house in 2008 and instead learning multiplication in elementary school
Same. Shouldn't have been so busy with learning my colors.
@@ZedetirI always knew I shouldn't have been coloring inside the lines and focused on coloring outside of them.
damn government had me learning useless skills in first grade when I should have been out in the mines working on my first down payment.
Beginner's mistake. But don't you worry, in the next "once in a century" economic downturn you won't have the money to buy a house anyway, so it all balances out.
You should have quit school at the age of 14 and started your own business.
The endgame is to make home ownership so unaffordable that we are all forced to rent from the nobility class like a bunch of feudal serfs!
Like Germans
What's the difference? Pay your rent monthly to a landlord or pay it yearly to the state in the form of property taxes
Rent costs more than a mortgage though
Yeah, going full circle back to the middle ages! Check mate from the aristocracy on us.
@@maxscott3349owning a home is a huge asset and unless you mess up, your landlord cant just refuse to renew your lease and force you back into the market.
My mom loves telling me how easy it'll be to buy a house if I'm just frugal with how I live. I swear to god I am going insane
It's not weird to feel that you're going insane if you're constantly being gaslit. That's what gaslighting does to a person.
Even today, there are decently-priced homes available if you search. Of course, these homes probably will not be inside of a major town. If you can live rurally, in a very small town, you will be able to afford a home. Find a career that allows you to work remotely, so you don't have a long commute into town for work.
@@johnnyvivic8730 perhaps. Trying to be optimistic, but the job options are very limited, housing is limited, I am not currently in school because I don't want to be indebted with no goal. Just, the push for going to college for some vague, "well-paying" degree felt like it took huge precendence over every other sectjon of life. I wish I was taught more, about everything.
Your mom is out of touch. She would be right if she said that 10 years ago, but in 2023, that just isn’t possible unless you have a dual income household with both making upper middle class salaries.
@@Stranger11105 do you want to know why things really are the way they are?
Bonus Reason 5: companies buying hundreds of houses and turning them in AirBNB's. This has even created "dead zones" in cities where nobody lives in enitre blocks of apartments in most touristy cities and are all airbnb's owned by one company. This in turn has desteoyed the local commerce because tourists dont need to buy groceries from the local bodega for example.
Name one. Investors hold less than 3% of all single family homes in the US.
@@MrBear10mm 3% is 4.32 million homes bud. That’s a lot. Considering then all the upper middle class families owning two or more homes and renting some out or using them for bnbs and it gets even higher. In New Zealand, where I’m from, Airbnb’s are a serious issue, and internationals buying up properties and renting them out form across the world is too. It’s an undeniable problem that’s driven the price of purchasing your own home way up to the point where sectors of our biggest city, Auckland, are locally being called “retirement villages” because only the old can afford to retire there. Towns that used to raise young families are now caring for overwhelming amounts of elderly. There’re consequences to lucky people making a good buck off the backs of hard workers staying in their homes.
The AirBnB plague is overstated imo but still needs to be dealt with seriously regardless. Catering to tourists is kind of like a get-rich quick scheme for cities since you're extracting money from the wealthy of other places with minimal guarantees that it will be distributed equitably. Tourism economies fall into shambles when recessions hit the global economy. The opportunity cost of ignoring better long term land uses and economic development is significant.
@@MrBear10mmbut what isn’t said in that statistic is that they are buying out whole areas, not just 3% scattered through the country, places in the sunbelt, and southern east coast have much higher numbers than the original 3% (Forgive me, I’ve forgotten the number) but they are slowly buying whole neighborhoods so that they can control local housing markets entirely
"Adam Something" made a great video about it. Prague is already a good example for this.
Everything is moving toward “subscription” model -- you rent everything in your life so others may profit more and more. It’s a sickness.
Even wage labor is renting yourself via "self ownership". Employment is literally renting another human being as if they're property. The employer-employee relationship is a very insidious dynamic. Employment is a rental contract, like if you rented capital (say, a chainsaw from Home Depot), you pay rent for the "time preference" (basically the cost of time) for a piece of property. Capitalism is based on a principle of self ownership, which sounds empowering, until you realize that most people don't own enough capital goods to make enough income other than themselves, and must rent out the authority over themselves as pieces of "human capital". This is a process of dehumanization where human beings are valued for their return on investment as capital goods. This is why, at the very least, capitalism needs unions and safety nets (or abolishment), or else the system won't value people for their human value. Importantly we must also think about our sick, elderly, and disabled people, as they can't provide competitive economic return for the investor class to value. We must figure out a way to change this economic system if we wish to value each other.
Actually it's about a stable and consistent profit. Doesn't have to be higher. It's about reliability.
@@WanderingExistencethe only person who successfully abolished capitalism was Adolf Hitler. There are two ways to make someone do something, either force em or reward them. Whatever your favourite breadtuber is proposing will not work.
usury is yes. It's in the bible.
@@TheMysteryDrivernah even consistent reliability isn’t enough companies lose if they’re not constantly growing just endless growth forever Totally sustainable 🙄
We need to ban corporate ownership of single family homes...
Immediately. It’s a war on the middle class and the serfs don’t have a chance.
Or do what Austria did: nationalize 60% of your housing market and charge only maintenance costs. Private sellers can't overinflate the value of their property if you have a bunch of basic apartments almost anyone can afford. Public options both establish a floor for the market and lower the ceiling on the private market.
Corporations should not pretend to own and profit from the land that never belonged to them in the first place, but we don't want to address that, right...
Corporations control the government which make the laws. They can do whatever they want, and nothing you say will change that. If you don't want to die on the street, grabbing at rubbish for food then get out while you can. If you don't, you're sealing your fate. Don't expect sympathy from anyone, as we don't care about human life; only profit matters.
@@russetwolf13damn that's so fucking based. Too bad all Republicans would have e to say is "communism" and their brain dead supporters would smile and take it up the ass
"This can't last forever" "...before it gets better" I firmly believe that this housing situation cannot and will not ever get better. Prices will continue to rise in perpetuity because market forces know that housing is a necessity, so they now have an incentive to make it a luxury to line their own pockets.
Agreed. My parents said it will go down for about 3 years and that hasn’t happened, I don’t see it happening for another 3 either.
Prices will go down, just not nearly as much as some are assuming.
Once they've made half the population of the US homeless and completely wrecked the economy, then housing prices will go down.
There's always a limit even if the system doesn't see a limit. When this happened in France they had a famous revolution.
Oh it will, it just has to get bad enough to get a revolt coming, and honestly class consciousness is on the rise. All we would have to do to bring these in power begging on their knees is a debt strike and a general strike. Debt strike wouldn't even be hard, as the main lifestyle is living paycheck to paycheck and most of us own nothing. We don't own our homes, our clothes, hell even the clothes on our backs are designed to need replaced like a subscription service, and we are never going to keep good credit as we're just about all a single $500 emergency away from not having money to pay the bills, so screw it. All we have to do is act together
I tried to escape this madness with my partner last year. We live in Italy, we both love nature and hate the city, we bought a cheap house in a small town in the forest, no mortage and I work remote, super happy of my decision so far
How fortunate do you feel to be able to work remotely?
@@Ralphfili I don't feel fortunate. I looked for that and took also hard decisions. I have friends that could do the same but they prefer not. Personal choices no fortune. Also, not everybody is fine living in a small village in the nature, it's pretty impossible also here to buy a house in city center.
In che regione abiti?
Partner - as in same sex.???
@@marblox9300 What is your problem why are you asking this? Partner could mean male and female, but not married. Get off his/her butt...
It's pretty crazy how it's gotten to this point so quickly. My grandparents came here from Italy. Didn't speak English, no money, no education. They were able to buy a small home that they raised 4 kids in on just my grandfather's income. Sure, they weren't rich and struggled to get by but they made it work and it beat living under Mussolini's rule. My grandparents lived in that house for the rest of their lives. Now, 2 generations later we are talking about dual income, educated, natural born citizens who can't even afford to buy a home. Pretty sure my grandparents wouldn't have come to this country if they knew this would be the future for their grandchildren.
Your grandparents took their chances ; their grandkids will have to take their own. And hopefully every generation will be their own people, instead of clinging to broken dreams.
What’s an immigrant descendant to do? Go back home? I think about going to my Grandma’s homeland all the time.
Weirdly Italy is in a slump and needs people and workers so it’s a good time to move for the opportunity. Plus you’d get EU Citizenship to boot.
If your grandparents were political dissidents and didn't leave, you might not even exist
my parents immigrated here from Algeria and I don't think they regret their decision.. even though things are more difficult financially for me I know I'll figure my situation out and I'm extremely grateful that my parents decided to move to the US
Corporations, especially foreign ones should be outright banned from owning residential property. If not through laws, then through force.
A progressive property tax may be better.
@@noneofyourbusiness4830taxing the wealthy ? When and where does that ever happen ?
How much do you think is foreign owned
@@noneofyourbusiness4830 And you know who that tax will be passed on to? The average American making 40k that’s already struggling to pay rent. 😒
@@handleyobusinessWe're kind of in an auction now. If taxes don't raise the rent, then investors/speculators most likely will anyway. However, progressive property taxes would tax the big owners more than smalltime owners, thus discouraging concentration of wealth and property speculation.
This seems like the worst period.Even the markets are very unpredictable.started investing recently when the market prices were a bit high,today i am more than 60% down
I thought about investing in the real estate market, I heard that people make millions , but I lack good knowledge and a strategy to outperform the market and generate good yields. I have $460,000 but it's hard to bite the bullet and do it. Money is hard to come by
I don't have a full-time job; instead, I'm self-employed with a variety of sources of income. Regardless of how much money I generate each month, I maintain the same budget and adhere to my means-tested lifestyle.
Biden should go
The best course of action if you lack market knowledge is to ask a consultant or investing co-ach for guidance or assistance. Speaking with a consultant helped me stay afloat in the market and grow my port-folio to about 65% since January, even though I know it sounds obvious or generic. I believe that is the most effective way to enter the business at the moment.
Fantastic! Can you share more details?
My parents bought a house in 2010 for $250,000. They listed it last year for $900,000. Even with the renovations they put into the house that's still an absurd increase
I bought homes quite heavily from 2011-2017 for 50-70k. They're all work 200-240k now. I thought for sure that interest rates would push prices down, but it just isn't happening.
Crazy to think 160 years ago they were better at housing people than we are now. Housing should be for housing, not an investment!
Population goes up, quality of life goes down.
@@justsomeguy3077it's got nothing to do with population increase and everything to do with capitalism
it's all a grift now. Making money by doing actual work? No no no.
@@justsomeguy3077population has nothing to do with it. You can fit the entire world’s population in the land mass equivalent to Texas with room to spare. The problem isn’t population it’s greedy capitalists and law makers. We have to the space to increase the inventory but no one wants to see their home values crash. Government laws written by left and right politicians keep from us from zoning new homes. The homes they do zone are for single family homes which isn’t an efficient way to house people. If there is any problem with population it is going to be the massive decrease from the current generation choosing not have kids because it’s too damn expensive. The reason that’s a bad thing is all the reasons he explained in this video. Even with a decrease in demand and an increase in inventory all that will do is make sellers not want to sell like we’re dealing with right now.
We have 7 Million new "Asylum seekers" you think that doesn't put pressure on housing? Population growth increases demand. @@lukabosanac2671
Born in 1997. Not having a say-so on my birth date is the worst financial decision I’ve ever made.
haha! born in 98' same here
@@jasminecontreras7341 what humble fools we are!
96, should of bought a home instead of fooling around in middle school.
I entered the workforce in 2008... most of us never had a chance to live the American dream debt free
I’m a early 90’s conservative millennial that was born poor and refuse to be a victim. Spend your money wisely and stop blowing it on stupid stuff.
If I didn’t have my VA loan, I don’t know how I could have got a house… my heart aches for all those who struggle. I worry for my children.
I cant even get something with my VA loan. Also got booted from the habitat for humanity program cos i only make 50k from my VA disability. Double what i made ten yrs ago, but it still feels like im making 25k. Barely afford food.
Revolution is needed
If you can't even manage your household budget, how are you going to manage a revolution?
The phrase "You will own nothing, and your will like it" is too accurate for the housing sector.
mr fink of blackrock said that
Thank you for bringing back this infamous phrase. I do need to correct you tho - "you will own nothing and be happy" is the correct citation hihi
@@Wartooth6He has a name and an address. Crazy, isn't it?
Wake up everybody there's more of us than there are of them
Money is free speech, and you owe 300k
If corporations, and especially foreign corporations, were barred from buying single family homes then this problem wouldn’t exist
If jews were barred from the nation like other nations have done thousands of times this would happen either.
That’s really all there is too it. It’s that simple
@@WhiteBuddha22 The largest corporations in the world are the ones controlling the western governments though so that would never happen
Who thought letting foreigners who don't even live in the country buy multiple homes would be a smart idea? In basically every other country it's not allowed.
@@jackjones4824 you can't even put up a wood fence in your yard without some stupid permit
The amount of new home construction in my southeast city is unbelievable. It seems like every inch of available land is being built on, but most of it is rentals, apartments and tall/skinny homes.
I’m from rural MN where these issues are seen but not as extreme as anywhere else - I’m just interested in this because I recently was near Cape Coral FL and the amount of new construction even after the hurricane was pretty crazy. And to think a large percentage of them are empty AirBNBs. Where in the SW are you specifically speaking?
@@bendegeus5576 Nashville.
@@bendegeus5576Nashville
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Bro what are you yappin about you said a whole lot of nothing using big words when plain simple English would suffice this ain’t a college course canvas discussion page
@@ConfettiHunter5060its just setup for a “advisor” scam lol
I truly detest homes being viewed as an investment vehicle. That's the roof people sleep under. Save and invest. Leave homes out of it.
Financially irresponsible leeches (Anyone over the age of 50) wasted their chance to save and invest during the best economic conditions ever in history, thus they voted their way into high housing prices that they can leverage for their retirements, the rest of us be damned
I hate to say it, but it's because you realistically don't want to be "negative" when you do your inevitable sale. Selling and buying a home costs money, from your own pocket. A lot of it! And it isn't just the down payment, realtors take 2-5% of the sale on top of other costs. As does maintaining it. Most people that rent don't live in one place long enough to realize that replacing HVAC is like a $15,000 job. Roof? About that or more. Flooding? Fucking forget it. Not to say homes need to appreciate the way they have been, but after spending X amount of dollars to keep your home nice, you'd hope you get some of that money put into it back when you go to sell. So long as housing costs money to buy and maintain, people will naturally want to "make" something off of that rather than just pissing the money away. Do you know how awful it would be to put $50k+ into a house for maintenance over 10 years (or less), and then go to sell it and OWE MORE MONEY?
@@brianmattei7134 what about cars? We buy them for 30, 40, 50k spends thousands more on Maintenance each year and parts to replace the ones that break, just like with a house. Lots of people also put aftermarket upgrades in their cars. Upgraded suspension, better tires, a more powerful engine. And yet with the only exceptions being super rare sports cars, your car will almost always depreciate in value. The longer you have it the more it does.
@@feedninjacat3206they need to take the investment angle from housing. That's the only solution. Housing should be like buying a car. I don't hear about a car ownership crisis.
@@feedninjacat3206 Most people are not buying cars for 30, 40, 50k. That is not nearly the average price people are paying for a car, not to mention that maintenance on them is MUCH much cheaper comparatively. Plus, the used car market exists. Every house is "used" in one way or another, there's no comparison there. Also, they're something that is way easier to replace. It's a bad comparison frankly.
Some guy bought a 2 acre lot in our neighborhood, crammed as many of the ugliest, cheapest plywood boxes as could possibly fit onto the plot, then sold each for $450,000 each. These are tiny 1 and 2 bedroom homes that were built with sub-par materials in like 6 weeks. They don't even have yards or garages, or a view. They're just crammed together like a shanty town AND PEOPLE BOUGHT THEM SIGHT UNSEEN AT ALMOST HALF A MIL EACH BEFORE THEY WERE EVEN BUILT. How the fuck is my working class ass ever going to afford to compete in that market?
Must have been a desirable neighbourhood for that crap to actually sell. Smarter, bigger investor should have put in a ten or twenty story apartment block. But maybe he couldn’t get a big enough loan or for that, or find a builder with the skills.
You're not, serf.
@@laulaja-7186most places are zoned only for single family. Apartments not allowed
It's people that buy these houses that contribute to the problem and make it bigger. "I cAn AfFoRD tHe DoWnPaYmEnT, nO nEeD tO wOrRy" Every idiots solution is taking out a loan.
sounds like Orlando
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There’s Bitcoin.
How tf you lose 20% in a month while the S&P grew 4%… might wanna look for a new FA
It's not just USA, it's all over the world. The only difference is the average salary and price of real estates. In Serbia, prices really skyrocketed when pandemic started, then even more with the influx of young Russians and Ukrainians with money fleeing the war. Now the price per square meter is about 3-4 times greater than in 2019. And the 20% downpayment is just ridiculous.
Same goes to Portugal. Is not even the prices of the house, is also the rent prices. I had to quit my university degree because the rent prices where to high, even if I worked part time, that wouldn’t be enough.
It's amazing how the housing crisis is such a self-inflicted issue in the US. Huge amount of space, low population density, yet houses are extremely unaffordable due to artificial restrictions on building and planning
Boomers obv
When capitalism becomes a cult
It's the young people's fault for not just living where it's cheaper
@@Moses_VII problem is due to government in bed with corporations, wouldn’t happen in a free market
@@zc7873 Yeah, because then the market would "regulate" itself?
I think what's also pretty insidious is the comodification of property. I watched another video where the creator made a good point: the shift came when houses started to be seen as an investment vehicle as opposed to a place where people and families live. This led to massive growth in rental real estate and less focus on people being able to own property.
Agreed, houses shouldn't be used as private property for a landlord to live off of the renter's labor
This also means that modern houses are made ugly on purpose. Cheaper materials to make a glorified human containment unit and still sells like an architect had its name written on the blueprint. Apartments are giant cubes that are painted bright colors to distract from how cheaply they are made.
THIS 100%
Yes. It happens even worse in other countries where there are far fewer trustworthy and successful investment opportunities (countries with a lot of corruption). In those, the ratio of RE prices vs average incomes is stratospheric. Totally insane. A house can only be bought by a family of 2-3 generations (often plus aunts/uncles also) acting as a team.
Said the same to my mother, houses are for living, not investments. This problem requires a tough hand to be solved. In my country housing has been the main target of forign investment, how ridiculous is that
The endgame is to work all your life for a 10x10 room.
More like a 2ft x 3ft x 8ft BOX
@@aiodensghost8645 A lot of people can't even afford that.
I'm 36 and all the guys in my family grandfather, great grandfather only lived to be 72 so at least my life is half over with. Only 36 more years of work to go.
15 years ago I built a sub-1000 sq.ft house myself. Nowadays what I did isn't even allowed here anymore due to red tape and changing zoning laws and building codes. That is another huge root of this problem, smaller affordable 'starter' homes are getting phased out by bureaucracy.
deliberately by the 0.1%-construction-banking housing cartel
Regulations ensure that you’ll own nothing, be happy! 🤡🌎
Let builders build
exactly, my area has a "land bank" that is property that has been taken by the state for unpaid property taxes and they have so many stipulations when you buy it, like you must build a 1500 square foot house within a certain period of time or they fine you for every day it's not done, no farm animals allowed, must have paved driveway ect. tiny homes are outright illegal in many areas due to zoning restrictions making it illegal to build anything under 1500 square foot
Homewowner's groups are the ones that push for this regulation because they don't want upzoning in their neighborhoods. If the price of your home is in the stratosphere there is no incentive for you to want to build more housing and potentially lower the cost of your house.
I really believe that some markets need to be off-limits to corporate, company ownership. Especially housing but more specifically single-family homes.
Be prepared to get called a anti American by the right
Even Adam Smith, the father of capitalism, said landlords are the worst
Maybe we need to reevaluate the structure of the corporation. Maybe _cooperation_ needs to be explored, like worker and consumer co-ops, community land trusts, and credit unions.
wrong, the right supports this @@FishOfTheSea
Amen! Our government job is to specifically help ppl not corporations.
I live in a fairly new development in a suburb of Des Moines Iowa. Literally in the past month three houses have went up for sale. Within a block of my house. All three bought by an investment company. Not to mention a bunch of condos were bought near me by the same investment company. This has happened all over the Des Moines metro. Then they jack up the rent which has caused even a 1 bedroom studio to go from 1,000 a month to 1300 a month. Houses rented from 1800 a month the 2400 a month. I am older 47. Bought my first house that I live in three years ago. I had to save and save staying a sub par duplex for decades. Put a 50% down payment and my intrest rate was locked in at 2.2%. The house was a 265k house when I bought it now is worth 350k just 3 years later. I have investors hounding me daily to sell. Banks hounding me to refinance daily. It's all about the corporation not the small guy renting out houses or the homeowner now.
When we bought our home, just a couple years ago, we made an offer that was $80,000 below the asking price. The realtor said there were others who are also interested in the property. We said, we don't care, submit the offer. 2 hours later, he called. The seller accepted our offer. The next 4 homes in this neighborhood sold for up to $60,000 ABOVE asking price. With the younger people buying homes without knowing how to negotiate a deal, it's no wonder prices are out of control. Most only want to stay 3 - 4 years and then sell for a nice profit, only to find they have to stay longer or sell for less than they hoped for.
Glad I was born just in time to be the first generation in America that can save 70% of their income and still live like a slave. I'm managing nearly that much in savings and I can confirm, I still feel like a broke college kid. I genuinely, from the bottom of my heart, wish the absolute worst on everyone who contributed to America reaching this point in history.
Mf spitting
And how old are you? I mean if you're saving that much money then you SHOULD feel like a broke college kid... You're not spending money. lol. which is good of course
@@mr.frandy7692it's not good, saving money is useless because fiat is worthless and beind devalued further every second
@@mr.frandy7692 boomer logic, get out of here gramps lol
Skill issue
Honestly I am sick and tired of homes being simple viewed as an investment and not the basic necessity it is. You need shelter to survive, like food or water. The greed is insane.
Oh, don't forget the cost of those is getting ridiculous too..
food and water are profited on just as much as housing. people die from starvation and thirst as much as they die from homelessness. when will you realize they have always been using us as pawns and monololizing everything that involves humanity
People just lost their mind or never had one. They do what they’re told buy their house and think it’s their investment, « buy low sell high » finally play like the big corps they work in and are indoctrinated all day long without getting the big picture and keeping in touch with reality. Irresponsibility is at an all time high.
@@dominostimes2119 could you imagine people doing such a thing for Water, food or medicine? Can't we as a society recognize the inherent evil of it?
@@nisibonum7634 Oh that will come later when the shortages kick in.
i am 29 and was very lucky to be able to purchase a house last year, I had to make a lot of sacrifices to do it- I never bought a car, I saved money instead of going to college, saved every penny while living with my sister and then moved very far away from my family to a more affordable location. And even then I was only able to get a small place that cost less than 100k, totally worth it since I'm sure things would only get worse
allowing corporations to buy family homes is gonna end up with a system where they own most of these homes and everything is rent and no one owns anything…
I’ll just say, my parents bought a home in 2013 for $230k and just sold it in 2023 for $650k. It’s insane.
Your parents’ house made $20/hour working full-time over the past 10 years. It’s crazy how some people’s HOUSES are making 2x the minimum wage…
We bought in 2015 and sold for exactly double in 2022. We wouldn’t have been able to afford the house we lived in!
how much they pay in property appreciation taxes
@@dakidlrg They paid nothing in capital gains taxes, thankfully. Those taxes are only paid in their state if you own the house for 2 years or less.
Damn, that's why I'm fucked. Sellouts.
The name of the game is to keep you in debt for life. You owe your soul to the company store! They don't want you paid off and free. That is exactly what they do not want!
We all owe our souls to the company store, that's literally the trade-off of civilisation. The more civilised one becomes the more freedom they must give up.
No. Civilized nations are not full of endentured servitude @@KRYMauL
@@KRYMauLNo, that's mostly just capitalism left unchecked. Look at Denmark and Finland.
The way you just described "debt" is the way we keep you down. Debt is good. Debt is leverage. The people buying all the real estate up are putting down vary small amount of money up-front. But are controlling a large asset and creating yield or income. Also crazy to think. With morgage rates at 7%. A loan sounds like a bad deal. But high interest rates also cause high interest rates in your savings account. 5%. So instead of paying the home off. You can put that money Into a savings account yield 5% the mortgage is 7%. Meaning your real interest rate is 2%. 🤔
@@arealponibean1223 They still owe their store to the man. In both those cases, though, the man is the King.
it should be noted Zillow buys several houses in an area and raises demand. Them offering you this deal makes them money even if never paid back based on the increase in unsold homes value around it.
Right now I'm m literally thinking about buying land & building a small home away from major cities & towns, my closet neighbor being half a mile away from me, with fences surrounding my humble small home
This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.
You're right. I was able to diversify my 450K portfolio across markets with the aid of an investment coach, and I was able to use high dividend yield stocks, ETFs, and bonds to generate a little over $830K in net profit.
You can employ another adviser, but Colleen Janie Towe, is my one who provides guidance. She has years of knowledge in the financial markets, and her approach has worked for me in the past, leading to my success. She offers points of entrance and exit for the securities I prioritize.
The last time , in 2008 , they bailed out the banks who funded the fiasco . The auto industry is also out of control on car and truck prices . It is just a matter of time history repeats itself, except it will be a bigger bail out for the banks who are already in trouble .
Could you build back then? Canada is doing the same dumb shit. The Feds have locked down a huge percentage of America through the wetlands and Nexus of Water laws. (Thanks Obama).
@@KelvinWallaceshill
My neighbor next door passed away last year. The house never became available for sale and right after her death it showed as sold on zillow for a lot less than the value of the house, I mean, by at least 30-40% less than the value! I looked up and it was sold to a company. It made me feel that this market is full of scams and the good priced houses never even become available because investors buy them before we even know
That's because that's exactly what's happening. But regulations are communist to y'all, so you're gonna have to enjoy it as is
Go back in time to 2018, start a reverse mortgage company and hire all of your cousins to distribute the profits. Shut down for covid, collect PPP money and enhanced unemployment, aquire the homes of all of the dead boomers, then run for Senate.
@@annnee6818 Big corporations lobby for regulations that benefit them or make it impossible to compete.
Look it up dude Zillow is one of the biggest home buyers. That’s why the Zestimate is a scam that benefits them.
@@s0nnyburnett It may sound counterproductive, but lobbying AGAINST these big corps in government seems to help somewhat. Use their own tactics against them.
Reason #5 - Towns and Cities have added multiple layers of regulations and extra costs to new developments further driving up the costs. While this may not be the case in the United States it is certainly true here in Canada.
The problem isn't wages keeping up, the problem is supply keeping up, because it's simply not economical to build a ~$250,000 house in most parts of the country any more. A growing number of people are fighting over a dwindling number of "starter homes."
I got pressured by family to buy a home vs renting back in 2013. I'm super glad I listened to that advice.
2013 was a different time. Not that any of us knew what the future had in store. Congrats to you though
A crappy landlord and changing family situation made me move around the same time. So glad I did, cause where I am now would be completely out of reach to me now.... and it's just a mid sized townhouse.
I graduated high school in 2013...... 😅 born too late
That’s was then now is now. Home prices are unaffordable. Dint buy here now. Rent.
@@pliktlhaha, same listened to my own advice and bought in 2019
Minnesota is putting a bill through now, to ban investors from buying single family homes. It would help things here, but other states need to stop these investors. We also need to build more homes. There is an inventory shortage across the US. Even if all the investor homes were put back on the market for sale, it still wouldn’t fix things.
No more new single family homes!!!! I'm sick and tired of hearing that. Demolish them and install triplexes and apartments.
@@pappi8338 Agreed.
Sounds great, they should not be able to buy a home unless they are going to live in it.
@@pappi8338 Agreed
@@pappi8338 Ah yes, cram families into tiny box apartments where everyone is stacked together like rats Terrible idea
The government is going to need to limit the number of rentals a landlord can own.
That might make it worst since they will now have fewer rentals that’s cost more and or sham companies that’s will go around the limit
Ignoring the fact Blackrock and Vanguard are buying up residential property indiscriminately , not maintaining it or renting it out. Since not being an individual they have no reason to sell it, buy it cash with an outrageous offer and sit on it, especially worse in areas where property taxes are low or where govt dont tax vacant homes or give cuts to corporations who own housing.
Same thing happened in ancient Rome, real estate got bought up by investment seekers to the point that common folk were completely priced out of affording a place to own, and it was absolutely horrible for anyone that wasn't mega rich. History repeats itself, and we're not even at the worst point yet....
That's interesting! Care to share some references? I'd love to read more about that.
yeah but look at what happened to ancient Rome. if the people are totally disillusioned, we'll side with the babarians at the gates
@@jordan.na.dzielni The Roman case was more about farmland and large farming estates. Look up 'Latifundium' . Basically smallholder farmers steadily declined and were forced to move to big cities and servitude. The Gracchi brothers tried to change this. They ended up dead.
Could you go into more depth on that? Sound interesting
@@NeoAcetalos-yw1ws Yeah, sure thing! It's a really big topic, but the simplified version is that something very similar happened back then that is happening today, the mega rich were just buying out everything, and the more they bought, the more expensive everything else got. What was especially egregious was that their favorite targets were low class soldiers during the time of the Roman Republic. Senators would conscript low class farmers and land owners to fight in their profit driven wars, and when they would come back they would be behind on debts (because they were off fighting), and often disabled. Even with the loot they would bring back it was rarely enough to keep them afloat so they'd be forced to sell their lands and move into the ghettos of the city while the rich just scooped up their lands and had their slaves farm them for cheap. Roman senators like Crassus were infamous for getting rich off of real estate. He was basically the Jeff Bezos of that time, except his fortune was owning most of the real estate in Rome and eventually war profiteering. What's sad is that despite how tight of a grip the most evil people in society had on the system, there were people who did try to make things fair. The Gracchi brothers were by far the most famous of them. They fought for giving veterans pensions, ensuring they had land, and breaking up the monopolies and dispersing land back to the lower classes. Of course, with senators being senators the Gracchi brothers didn't have a healthy career, they were both openly and brutally murdered by the senators, one beat to death by the senators themselves, and the other killed by mercenaries hired by the senators. Funny thing is that the senators who fought so hard to resist any legislation that would make life better for the lower class were so good at spinning things and put so much money into propaganda campaigns that there was still a sizeable percentage of the population that supported them, even if it meant through violence. It wasn't a majority, but it was enough to make these senators very dangerous and difficult to deal with. Things never change....
It's because people look at houses as growth stocks. The trend has been to buy as many properties as you can right now, rent them out at inordinate prices, hold onto them for decades, and make a considerable profit. They're not "single-family homes" anymore, they're gold bars to investors.
That's the way it was since the beginning of human civilization, and why we call people who own property landLORDs.
Won't be when the riots start forming.
@@Mariobrownio1989 That's true, but I'd argue that it's become much more popular within the last 10ish years. That's just my opinion though.
@@Mariobrownio1989Henry George was right.
@@daviswatkinsytTo be fair you're not wrong. It's just the way the system was built. And unfortunately if you live in the USA, there's a high expectation of your potential income levels that is, for the average American, unrealistic. Yes, we do live in a 1st world country. Yes, there are limitless opportunities to grow our income here in the USA. But realistically speaking, the average American props up the system by working at a dead end job which will never yield the income to sustain a mortgage for a decent house. Fortunately, I gave in to societal pressures to get an education and suffered through school debt, then worked my ass off to get to where I am today with a $170k income and buy my first home at $500k. Even now I'm still struggling in some ways with finance. So when you extrapolate that to the general population, logistically something is wrong. Average Americans working average jobs yielding average income, but in a market of premium home prices? I'm not an economist but something isn't adding up here. Realistically, in order to afford a home at average income, you'd have to relocate to a less-populated state and HOPE that your income remains largely the same in order to secure the lower home prices. In a lot of situations, other states pay less than that of highly popular/populated states. So relatively, it's only marginally better UNLESS you were able to secure the same (higher) income in a lower average income state.
This is why I'm glad I bought my three decker in fourth quarter 2007 when the crash was just beginning. I was only underwater with the mortgage for about three years before the market corrected but even underwater I had the home and my equity was only going to go up and I was able to lock in a 6% fixed mortgage. The terms I was able to get stipulated that my mortgage can never be sold by the bank on top of it. Now the city and Zillow think my house is worth three times what I paid for it and I have foreign investor backed jackals constantly trying to get me to sell it so they can jack up the rent to five times what I'm charging now. Absentee landlords should never have been a legal thing. Ending that would end virtually all of the housing problems in this country overnight.
We’re a nation that makes nothing tangible. The bread and butter of our economy is the ability to incur debt, therefore the plan is to increase the value of assets to the point where you will “buy” them (via debt) but never actually own them.. it’s just a way to keep the machine running.
People have already said it, but developers want to price people out of home ownership so everyone has to rent. We need some type of intervention before another housing crisis gets to a breaking point.
Developers want to sell houses, people like you are seriously ignorant.
Developers want to turn a profit on development. The real problem is that it is not economical anymore to build "starter homes"
@@maximo6037the "starter homes" mindset is the problem. The fact that homes aren't built to be lived in, but to be sold.
@Stryqwills that's not my point. Because development costs are so high....builders need to build bigger homes (more square footage) to make it worthwhile. In 1950s they were building 1000 Sq ft 3 bedroom 1 bathroom homes. Now, those homes are hardly built. Result are larger homes and young people are priced out or forced to go condo route
It is not starter homes. It is a house. Housing used to be considered a consumer good instead of investments. Want to fix this turn housing into a consumer good again
Not only can I not afford a house, I can't afford to keep a positive bank balance. I'm paycheck to paycheck on a full time 50 hours per week job that pays $28 an hour. This is literally madness
Stay strong brother
@@who_k_nows I swear we are working to pay taxes 5 times over and then maybe just maybe have enough for food. The best years I ever had was 2015-2019. I had a minimum wage job as a Valet parking guy and I was able to save enough money to take a vacation to Europe for a month! LIKE HOW!? $7.25 an hour + some modest tips!? and I went to Germany/Norway! Now I struggle with rent $1300 a month with utilizes plus gas and food. I've been in an apartment this whole time, idk what else I'm supposed to do. being homeless seems cheaper rn
Same here, it’s absolutely ridiculous. Im so close to giving up completely.
Where do u stay? I'm making 52k and looking in the Chicagoland area.@@cowmath77
Yeah I am getting hammered also. I have cut back on basically everything also. Vancouver is just too expensive. It's more costly than NY
I just had to rewatch the Housing cost part multiple times.. In Germany for me to take 49.000$ home, I had to earn 81.000$ before tax and FICA.. And houses start at 300.000$ even far from the cities.. Guess I'm screwed 😂
Also in Mexico
worldwide issue....
I am fortunate I made productive decisions about my finances that changed my life forever. I'm a single parent living in Bn Italy, bought my second house in April and hoping to retire next year at 50 if things keep going smoothly for me.
You're really doing well for yourself, I'm 46 and my financiaI life is in a mess. Any great tips would really go a long way in shaping my life.
I obtained massive growth in my finance by varying into packages with the aid of my finance-pro. hereby making my financiaI goal a reality.
sear ch the fuII name below, lf you care
Rebecca Martin Watson.
i’m amazed to partake on this, it has rekindled the fire to my finance goal.
These large corporations need to be regulated. Unfortunately these large corporations also control our politicians.
Just vote ones like that out then. Stop rewarding bad behavior
@@mikem1917yeah it’s THAT simple
That’s always the issue. The meta problem
@@mikem1917and vote in the need stooge that also takes corporate money? They all take it to finance their campaigns.
They own less that 3% of all single family homes in the US. Historically speaking, roughly a third of Americans will never own a home and that statistic holds true today. It is you, not the market or investors.
The endgame is a return to mass rental, in centuries past homes were built by factory owners for the use of their employees, ownership in the grand scheme is relatively recent. The intention is to return to that state, "starter homes" are being priced beyond any new home owner could possibly afford, but it's a pittance to entities like Blackstone, and as you pointed out, mortgage payments are far less than rent, and commercial landlords like Blackstone don't need to get a mortgage, they have the investment funds to purchase outright, so they also avoid crippling interest. We are being herded back into renting, because like everything else right now, existence is a subscription service.
Very well said. That’s why they keep pushing the idea that socialism and communism is a good thing in schools… it’s to make us “own nothing and be happy” like the world economic forum cucks said.
"Existence is a subscription service." Damn this is so true. Do I permission to use this phrase?
well said
I just brought my first house after working and saving and living cheap. And I’m just a carpenter living in Sydney Australia which is the second most expensive housing market on earth. We in western society have lost sight of the fact that life is competitive. It’s supposed to be. Anything worth achieving takes hard work sacrifices and intelligent planning.
@@RedShipsofSpainAgainyes - for a monthly subscription of $14.99
My wife and I got in at just the right time for our house... 3.1% interest right at the beginning of covid right before house prices went up. Literally a month after we put our offer on the house (march 2020), the estimated home price in my area on all realty websites went from 265000 to 340000 . Today that price is at 370000...! Our only regret now is that this 1650sq ft 2 story house was truly meant as only our starter home. Our goal was to eventually upgrade to 2k or 2250 sqft for our ideal living house, however with prices the way they are now, it just is not even worth it. I will repeat at least we have a home at a pretty stable 1150 a month mortgage including property taxes. Our plan now is to wait until the house bubble bursts. While we would not be selling out place at 370k, we hope we can sell it for roughly what we paid for it, so when we move to our more permanent residence we only have to throw a couple hundred k onto it instead of easily over 400-600k.
Own home but equity in the form of future higher price for resale is not guaranteed. Plus insurance, plus maintenance, plus utilities, plus disaster recovery, plus intrusion security, plus buffer in case all of those increase or if there's a major medical or other event.
The really big problem is the large rental companies buying houses well over asking. This artificially drives prices up to where only large rental companies can afford them anyway.
And... who owns those companies?
Free market is the way, am I right?
@@Blundabus1337uhhhhh Israelis
Y'all really don't understand how real estate and rental acquisition works. You can't just buy a property for way over asking and then hope it's profitable. An overpriced home cannot be profitable for a rental company.
@@dw1894as someone who worked for those company's, it absolutely is.
Saving for a house down payment that grows at a rate faster than my paycheck is like trying to reach for the remote while running on a treadmill that steadily increases its incline.
I don't know about others but I'm probably not going to buy a home in the United States. Maybe I'll live in another country after retirement.
Stop spending your paycheck on stupid stuff or grow your skill set. I was born extremely poor and I refuse to live my adult years that way.
@@handleyobusiness you can refuse all you want. reality is reality.
@@handleyobusiness bro, “stupid stuff” means whatever the hell people want to these days 😂❤
I’m not sure where you live But not all mortgages are 20% down. If you live in a rural area, USDA offers a no money down mortgage The buyer still has to have enough for closing costs and the property has to be in decent shape FHA mortgages are 3.5% down FHA 203k are mortgages for homes that need renovation VA like and are also no money down but you need to be a veteran PA has a program offered in conjunction with the PAFHA called K-fit that can get you into a home with very little money. Of course, anything less than 20% down you will be paying PMI Talk to a knowledgeable Realtor in your area. They can start you in the right path
@omegajesus97 I feel that. I was born in 1992, but made the decision to enlist in the military for 6 years. After getting out and finally having a lifestyle where I actually can buy a home, they have become completely unaffordable.
wow, I actually did learn something about money and the housing market, thanks for such a good explanation
I think their end game is for everything to be rental, that way they keep their high earnings
Sure, and why not? You get all these low income hogs to vote for neoliberal capitalists, and this is what you get.
Effectively yes. And anyone who wants to live a cozy life without having to worry about it all dissappearing because of illness or loss of employment is pretty much forced to invest in things that reliably increase in value at a greater rate than inflation, indefinitely. This means real estate. There are other investments, but none as reliable. You want to live a cozy life without existential economic threat? Own multiple properties and rent them out. This mentality alone will keep buying opportunities low, and the vast majority priced out of ownership. Regulations limiting the number of properties individuals and businesses can own, how many can be short term rentals, and serious investment into mass building homes for individual ownership is the only way to counter this.
@@sw3604We simply need to make owning multiple homes illegal. It's okay if you bought a house and this secures your wealth. But we can't have investment firms and billionaires eating up the entire housing market.
"...their end game..." Lol, who's, "they" and who's forcing people to have kids on an already overpopulated planet? Idiots.
Which is foolish, such acts have led to multiple revolts in the past, the most obvious being the revolutions that took place in the 17th century.
In order to buy cheaply, I'm waiting for a housing crisis after selling a few houses in 2020. I've been considering buying stocks as a fallback. Do you have any advice on when is the greatest time to make a purchase? On one hand, I continue to see and read about traders making more than $$$k per week. On the other hand, I constantly hear that the market is crazy and in the midst of a dead cat bounce. What causes this?
Many people struggle to handle a market crash, but with the right strategies and knowledge, you can find opportunities for success. Having a well-defined exit and entry plan is crucial for maximizing gains.
It is true that the US stock market had been on its longest bull run ever, thus the widespread panic and frenzy is reasonable given that we are not used to such unstable markets. However, as you pointed out, there are possibilities accessible if you know where to search; in the past 10 months, I've made over $$$k, and it wasn't a difficult plan of action. Because I understood I needed a solid and reliable strategy to navigate better in these times, I hired a portfolio counsel.
@@TomD226 Impressive can you share more info?
@lowcostfresh2266 There are many financial coaches who excel in their profession, but for the time being, I employ Laurel Dell Sroufe because I adore her methods. You can make research and find out more.
I was looking at houses again recently, renting right now, in probably the last place in the U.S. with anything like reasonable rent. Anyway, a run down 2 bedroom, 1 bath 800 sq ft. fixer upper needing a roof, floor replacement because the existing one is rotting through is around 200K. But there was also something weird- at 400K you can buy a very nice house, that needs no work at all, twice the size on a 4 times larger lot, with nice appliances, better built, etc. The 400K place is WAY more value for money than the 200K place.
Because everyone wants the cheap homes. Which is raising the price for cheaper houses while more expensive houses have not gone up as much for there is less interest in them. So the gap between a high end home and a bottom tier home has stayed the same or shrunk.
Did i miss something in this video, or was lack of home building mentioned?
Zoning laws
People dont get it. They dont WANT you to be able to afford a house. They want you to rely on on them and where you reside
indeed but they will fail. Never worked long term in History.
I don’t know who ‘they’ are, but you’re right.
@@dancingbanana627landlords
I think we get it but its so debilitatingly terrifying that we kinda block it out. I had the same thought immediately after reading the title. We know why. The system is working as intended. And here we are.
@@dancingbanana627I’ll give you a hint. Tiny hats
I just assumed we'd reach a dystopian nightmare future where homes are traded between monopolistic corporations while everyone else huddles on roads homeless. Just me?
I don't see why not. Large corporations just keep getting larger through buyouts and consolidation, so why won't apartment building landlords branch out into cottages and bungalows to add another revenue stream?
We're almost there, except the side of the roads we would huddle on would be owned by the corporations and we would have to pay rent.
Or where the corporations that own the homes and land start trading the residents around as well like serfs.
@@SkellyHertz it's already well under way. 97% of youtube channels do not get monetized, which means that most people are working for free building big tech's platform for them. But the casino has to have a few winners. See the scam yet? ;)
Don't you worry about that. You will be given a fair chance to work-of the rent for your spot on the side-walk on the land lords estate. He always needs people to build his new palace or work his plantages. And if you do not like that there is always the option to join the space force and help the emperor to colonialise mars.
Bought a little 80s townhome in 2009 when prices were still dirt cheap thanks to the recession. Somehow had found a credit union still doing 100% loans when those were nearly unheard of. Sat on that til 2017 when we bought a larger single family home. Proceeds from the sale of the first place not only gave us our 20% down but we had a ton left over. Once you get over that first hurdle it gets so much easier
Dang, I should've bought a house in 2009 instead of wasting time going to elementary school. 😅
@@WulfieZi yeah geez man. What were you thinking? Lol jk
@@luke5100 I knew I should’ve just dropped out in the 1st grade and entered the work force instead wasting my time learning how to multiply what was I thinking 🤣
@@rocky_mochiii what are they teaching you kids?? Lol. Everyone knows that when you’re in first grade you should go take out a half million mortgage. Come on 😂
@@luke5100 Ik i really messed up worst part is I got a second chance in 2018 but decide to take my SAT and ACT 🤣🤣
9:29 thank you Uncle Joe for those heart touching words
It's still crazy to me that home ownership is still viewed as an investment. Even in this video he mentions how important it is to "build equity". Considering that shelter is part of the base foundation in the Maslow's Hierarchy, it should never have become a retirement vehicle.
Its cheaper than renting, all money used to pay the loan can be recouped during the sale, the higher the interest the less you’ll recoup so you want around 3%, thats why the market is essentially frozen cause its is around 8% rn
@@NoxDeadlyYou totally missed the point.
What is truly retarded is this culture we have of getting out of the parent's home before you have money to buy your own, I moved out because of family problem, but why the fuck is everyone else doing this shit? Do their parents want their children to be slaves to some landlord?
@@ginglebret what was the point?
@@NoxDeadly"Considering that shelter is part of the base foundation in the Maslow's Hierarchy, it should never have become a retirement vehicle."
We bought in 2018. If we were 5 years behind in age/being ready and were looking a couple years later we would not be home owners. In 2018 we paid 238k. Last spring my realtor contacted me asking if we were interested in selling... We weren't but let him come for appraisal and he said he's sell today at $489k. Selling made no sense as anything else was up that much too, but it really shows how ridiculous this system is right now. In those 5 years the only capital improvement was 15k for 2 heatpumps and to replace the electrical panel as it had screw fuses😂 Other than that we've done no significant upgrades and in 5 years went from 238 to 489. Insane.
In Czech Republic interest rates are high.Some people don't even reach to saving for downpayment. Houses and apartments in Prague are too expensive so some people can’t affrord it or even rent for some people is too high.They also sell houses that would need demolition for a lot of money.
When everyone can’t buy a house, they buy apartments, then smaller and smaller apartments. I was born in Hong Kong, saw it with my eyes
Too bad current zoning and other laws pretty much prohibit high-density apartment buildings like you would find in most of the rest of the world. Stupid laws like those requiring "3 parking spaces per studio apartment" make those projects literally impossible to build here...I wonder if that's by design...
@@CyphDragon everyone has a car
@@raymondcanessa7208 False
@@raymondcanessa7208 But three cars,, including potential visitors? They've been building new houses on top of parking here. There was large plots of mostly empty car parks by the train station and campus.
@@raymondcanessa7208coz u NEED a car. It's not by choice
A simple solution that probably has more complexity than I realize: ban institutional investment in single-family homes, period. Let them squabble over the prices of commercial and industrial real estate, while letting the actual market of actual people that will actually reside in those homes decide their value, not some faceless corporation that's looking to "extract value" from residents.
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Nope. Just invest in something else. Stocks, Your Own business, Crypto, etc. as you see fit. This idea of a home as an investment - which is really a forced piggy bank - is dumb. Btw, I'm under 40, never owned a home (I rent) and worth $2 million, so it's working for me
@@BossItUp911 soooo...you own nothing. Congratulations? I guess? Good luck eating your crypto when whatever coin you've been conned into inevitably crashes to nothing.
@@CyphDragon I own the business that bought the home you can't afford. Ever heard of a REIT? I don't own any crypto and never will. sorry you're poor.
@@BossItUp911 so you "own" a tiny, insignificant portion on paper of a massive investment firm that has no idea who you are, and literally couldn't care less. Again, congratulations? I truly hope you never have a significant life event that will teach you *exactly* how much that paper is worth, but when statistics catches up with you, I hope someone shows you exactly the same amount of consideration as you've shown here. By the way, I have more equity in my home than I owe on the note, have 2 vehicles paid for in the clear, and have been doing alright for myself, despite being jobless for almost a year at this point. Have the day you deserve.
Unaffordability of housing can be down to lack of real estate awareness.
You have convinced me that the best skills to learn now are how to survive while living in your car. Being nomadic looks to be the future.
Short answer is, I think, there isn't one. Industries nowadays generally don't think ahead in any long- or even moderate-term way. They just want to make as money now as they possibly can because the current system incentivises short-term profits to the detriment of quite literally everything else.
That’s what I’ve been saying. Companies do not make smart, rational decisions. All companies do is choose what makes them more money by the end of the current hour
The part you forgot to add the part where they are building extremely low quality homes that are extremely overpriced and very low quality
Then they buy down rates instead of discounting so homes don't bring down property value.
Why would they worry about quality when people buy them anyway?
@@thatclutchgaming1059 Exactly. Build them as cheaply as possible, sell them for as high a profit as possible, then walk away leaving the buyer to deal with the inevitable problems caused by how the place was built. Caveat Emptor
Ain't that great? Houses that fell apart by the time you finally paid them off /s
This. In Texas, some new homes don't even have wood walls in the interior. Just 1 sheet of drywall nailed to the studs. These homes come with a ONE year warranty. Let that sink in....
It's literally just landlords. In Canada our biggest problem (until we passed a law to stop it recently) many large Chinese companies (or individuals who were rich) were SNATCHING up all the newest homes on the market, and then would immediately flip them as rentals. So prices have been skyrocketing since (in terms of the market) new homes are immediately selling and selling regardless of how high the prices go. Which on paper, makes it appear that our housing market is thriving...but in reality those homes are all becoming rentals and the average citizen can't ever hope to even get close to affording a house. In my city, a CHEAP fixer-upper that would need to be renovated...is about $300,000. Which means if you need to put down like 20% just to get a mortgage for your fixer-upper...that's $60k before you have even actually spent anything to fix up the house and make it liveable.
The end game is I keep saving my money like I have been the past 2 years and in another 3 years when the markets at Rock bottom then I buy😁 Every crash we have ever had has always taken at least 3 to o 5 years to hit bottom this will be no different the writings on the wall you just have to learn how to read it.
It's insane that greedy corporations are buying and using houses like pieces in a chess game rather than the life-changing and vital necessities they are for society
Whats crazy is that the government lets them do it. Buying houses for anything other than living in it should have massive taxes and interest.
That's the sickness that plagues society the most. Everything, everyone, and every situation is an opportunity for profit. The billionaire class dgaf about us
I agree there should be some kind of cap.
Eventually if things get bad enough, these corps will lose their residential properties through force. This is completely unsustainable and irresponsible.
Capitalism momento
I remember when I was in middle school, my parents bought a beautiful home for 300k in California. I checked how much it sold for in 2021 and it sold for 1.4 million dollars… I bought a home in 2013 for 199k in idaho. It recently was on the market for 750k. This is ridiculous
Way of the future baby! Children are being born into a world with no chance.
The home my parents built for 150k in 1990 sold for over 700k in 2019. Pure insanity.
yes inflation is a thing that exists. what's your point
@@Nerdnessable That would be an inflation rate of 30% for ten years. That's is unsustainable. What's your point?
@@Musicdudeyoutub - The point is on the top of his head, LOLOLOL.....
Move to where you can afford one. I left Illinois for that exact reason.
I had a colleague in the city who told me that he wanted to have bigger bedrooms and a large yard for his children. He quit and moved to a small community some 20 or 30 miles from Denver, I believe, where he got it all. Large lot, large house, good schools and a better job title at a smaller company. He didn't get any more money, but he was much happier with the new arrangements than with his cramped and expensive lifestyle in the city.
The funny thing is that in all this debate about affordable housing, people barely mention the option of state-subsidized public rent-housing. It reflects how we've taken for granted that homeownership is the default way to live, however absurd it may be in light of just how urban our society is.
Usually those are in bad or not so good neighborhoods with concerning crime. But the best Affordable Quality Housing in good/decent neighborhoods I've seen is strictly for age 55-65+
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.
Personally, I can connect to that. When I began working with a fiduciary financial counsellor, my advantages were certain. I got into the market early 2019 and the constant downtrends and losses discouraged me so I sold off, got back in Dec 2021 this time with guidance Long story short, its been 2years now and I’ve gained over a million dollars following guidance from my investment adviser.
I definitely share your sentiment about these firms. When I was starting out, I checked out a couple of freelance investors online, so you could do the same. I personally work with “Colleen Janie Towe”, and she's is widely recognized for her proficiency and expertise in the financial market. With a comprehensive knowledge of portfolio diversification, she is acknowledged as an authority in this field. Most likely, her deets can be found on the net, so you can confirm yourself.
8% on a $100,000 home is A LOT different than 8% on a $450,000 home. Don't leave that part out.
My father's first house in the US was around $50,000 in the 1980's, he sold it for $150,000 in the 1990's and in around 2020, saw it was listed for $250,000. His job pay was around $25,000 dollars a year (he got promoted a few times) and that job today is at the same wage (maybe up to $30,000 a year if it still exists). It was a nice house but it isn't worth $250,000 and he was being underpaid for the amount work he was doing back then.
I so agree! My parents last home they bought was $28k in 1971 (central valley of CA) - my brother sold the house in late 2021 for over $320k (definitely needed a lot of work !!) - the new owner is renting it out at $1,250 / month. I saw the pictures & I know many of the bad stuff is still there (plumbing, electrical, heating,....) they just repainted the interior & put new cheap flooring over the hardwood floors & 1940's linoleum (with asbestos subfloor!😮) I'm thankful that my hubby & I are content with nothing fancy & used part of his rolled over 401k $ to purchase a small house on 1/2 acre in full (totally a smaller area of the country & with lower housing prices for now )
yeah it's crazy that people still make what my friend's parents made 20-30 years ago but stuff is 200% more expensive
Underpaid is relative to what your money can buy. If homes were available at 2x his salary, then that means the cost of everything was much cheaper. If being well off in modern society is making 100k, then by comparison there should be many homes in the 200k price range today, but there aren't
@@carolynridlon3988my man that's nothing. If you calculate it only give a return of 6.5%. Which is nothing to what S&P 500 has given in 40 years.
@leigh it has only given 12 % cagr which is good if you live there rent free for 10 years.
Don't despair, young folks. All of my adult life the market outpaced me and my salary. Educate yourself. Start a great business. You'll shoot past the market. Hang in there. Never give up!
I think a big problem for people my age is that they are just investing in the wrong things. So many kids go to college without a second thought, just picking a random major or not knowing what they even want to do in the first place. I'm sorry but that's just dumb. You don't invest stock when you don't even know what industry you're investing the stock in, and it should be no different than for education. Get a college education in a degree that's going to get you a return on investment, if not then don't go to college. Your advanced basket-weaving major isn't going to get you anywhere except in a giant financial hole that you'll have to dig yourself out of.
very few people have what it takes to come up with and run a great business
I kind of feel like we've been playing this game for so long the people with all the money forget the people without money can still flip the entire card table over and say they quit.
Tells us not to mistake Blackstone for BlackRock, 10 seconds later he mistakes BlackRock for Blackstone.
The creator does these “mistakes” on purpose to increase comments and engagement. It’s annoying that he does it so protest by not engaging
@@hefv5662vsmreminds me of when creators would try to cram a joke or something in a space of 0.1 seconds so you have to rewind the video and play it again, to increase engagement.
@hefv5662vsm Actually if you care you'd want to spread awareness and demand a change with a unified people that agree with that statement. I personally am getting tired of channels that just comment on what's going on and seem to be profiting from it without really trying to change anything... Probably because KZhead hates actually advocating to work against corpos
🤣 i noticed that
Rick and Stone in the heart!
An old house was bought and renovated very close to mine. When completed, it was listed at $680,000. It hasn't sold for over a year now, and the price has gradually come down to $510,000. No other house in our neighborhood has sold for over 400k in the past.
Once it reaches equilibrium, it will sell
Good
So then, for some people, prices are actually coming down. Do you mind if I ask what state this is in?
Is this in alaska?
@@jasper5902It’s like this in most flyover states. A home just sold 2 doors down from one of my rentals for $270k in Pittsburgh in a neighborhood with a phenomenal school system. It was a nice place too, well kept. The value of my rental hasn’t really moved more than $10-20k in 10 years. If you live on the coast though like I currently do, prices just go up. Constantly. If you’re starting a family, move inland. Coast is for the upper class, Airbnbs, and retirees.
Regarding the last point on generational wealth/investing: Real Estate investments are often heavily subsidized and experience very low tax rates in many countries. In Canada, investment income from property value increases is insanely low. Declaring "primary residency" allows for an easy loophole as investors will just claim that their spouse/kids occupy additional properties. Many municipalities further the subsidies in various ways. One such example is irrationally low property taxes rates (which require new builds to pay additional taxes and fees in order for the municipality to balance the book). And there's even more... too much to get into. Creating a set of rules where existing asset owners flourish while the working class is taxed to death will spell economic doom for a country and is really unsustainable. Well-establish economic principles as well as historical case examples agree with this.
"You don't save money to buy a house, you save money for a down payment." Yes, this is correct. The problem is that if houses get more expensive, so will down payments. You can say that it'll only be 1/5 as bad, but it's still going up. I made a 30% down payment on my home and am still barely making ends meet due to insurance prices going up every year. The fact that the governments allow mortgage and insurance companies to make these increases (yes, it is the government passing these bills - all my insurance policies are through government companies due to the lowest possible pricing) is absolutely appalling. Those who are well off don't care to let anyone else own property. You take property from the people, and you take one of their inalienable rights.
I bought my home December 2018 for $189,000, now its worth is $380,600 Last 30-day change+ $3,545 (+0.9 %) Buying a home is an actual investment.
a major one you missed is overseas buyers. People buy, usually new, homes and don't let anyone live in them. They sit on them for a few years and sell them to another investor who also sits on them. These groups are smaller than reits, but can buy multiple condos causing a false scarity (since the condos are only empty, there is no actual shortage)
its oh so easy to just blame everything on the landlords like how it was easy for the German military to blame their mistakes on the jews, because its simple to blame one thing for everything. -San Francisco wouldn't have a housing shortage if it didn't have a sea of single family housing between Daly City and the down town highrise cluster. -Los Angeles wouldn't have a housing shortage if it wasn't a sea of single family housing outside the down town highrise cluster -Seattle wouldn't have a housing shortage if it wasn't a sea of single family hosuing outside the down town highrise cluster -Vancouver wouldn't have a housing shortage if it didn't have a sea of single family housing within a 10km radius from the down town core -Sao Paulo has 20 million people and it isn't as to my knowledge experiencing a catastrophic housing cost rise as it BUILD HOUSING as evidenced by the spread out apartment towers that house within a single building the same amount of people as a suburban neighborhood. It's an economics problem of supply and demand
Isn't that illegal?
@Skumtomten1 do you think they _care_ about law? They don't. These people will park in a handicapped spot, or a fire/emergency lane, get a fine, shrug, and say "well, that's the cost to park and do business." They do not give a damn, to them, any fines/legal fees are just part of the cost of doing business. Government won't prosecute them since so many do it, and they have too good of legal teams. It's easier to go after the small fish and let the others do as they please.
This is the first great argument for squatters
Helping a friend sell a house in Princeton, New Jersey, and watching Asian buyers from take one stroll through the house and make an offer, telling us upfront that they have no intention of living there.
This is so sad. Back in 1955 when I was five years old, my parents bought our family home for five thousand dollars with monthly payments of fifty dollars a month. My dad lost his job when I was a teenager and I went to work to make that payment. It was a struggle but when my dad went back to work, we combined our incomes and after I left home he paid the house off. I don't think there is any city in the world where you could buy a home for that price.
And to give some more perspective: $5,000 in 1955 adjusted to inflation is $57,300. What kind of house would you get with $57,000 today? The average house in the US today is actually $416,100. So adjusted to inflation, house prices have risen about 400 %. This is just totally insane.
@@Sabeximusdamn son
@@SabeximusI live in a relatively cheap state and I can’t fathom a house costing less than like 130’000 minimum
You can easily buy a very decent log house in Russia for 5k$, in many other nearby countries too. Btw I'm buying a livable fixer upper house in Cleveland for 20k$
@@artemzhirkov7565a log house... do you have electricity, running water, and a sewage system?
50k of raw materials and the labor of 30 men for three weeks shouldn't cost someone 50 years of payments.
👏
With the federal interest rate at where it is, buying a home right now is stupid. The amount you pay on your monthly mortgage would barely scratch your principle, the majority would be just paying off interest. People buying with a mortgage today are just buying, hoping that the mortgage rates will drop in the near future and that they can refinance their mortgage at a lower rate. Buying a house with the current rates doesn't "build equity" right now. You might still buy a house, thinking it will appreciate in value due to improvements in market conditions, but it can also go down instead of up if the bubble pops, putting you upside down on your mortgage. Everyone knows this, so the people who own a house right now are not selling because they'd have to change their interest rate from their low rate to a much higher rate. This is keeping houses off the market, reducing inventory, which increases demand, which increases prices. The primary way new houses come onto the market is through new construction. That new inventory helps satisfy some of that demand, but lets be realistic: it's not infinitely sustainable. You eventually run out of space to build new housing on. The main way to make housing more affordable is to start regulating the number of properties anyone or any group can own. You don't have to ban multiple home ownership, you just have to add tax rates on additional homes which grow exponentially as a function of the quantity of homes owned. If it becomes financially costly to own additional properties, there will be a certain point where owning an additional home costs more than it's worth, and the financially prudent action is to sell. This would create more inventory on the market and lower prices, bringing first time affordability of homes back to the average worker.