Buying vs Renting a Home: Which is BETTER in 2023?
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world used to be free, u could build a house anywhere u liked. now only mars is free because they can't catch u there.
A mortgage is a DEATH CONTRACT. In addition, you will NEVER "own" a property FREE AND CLEAR in the US. Skip payment of property taxes (without a mortgage) and the government can still foreclose on property.
Crazy thing is China built enough homes to give everyone on the planet 2 apartments and the price didn't come down. I realized it's because everyone wants a better home, you have to live somewhere, companies and people buy extra homes to invest or rent, etc. And while there is plenty of places on the planet to live, everyone wants to live in the same locations.
The supply has to be greatly over supplied to the point where everyone has a luxury home before they are satisfied with where they live and prices goes down.
Completely ignores maintenance on the house plus insurance lol
your "rent" you save just becomes HOA, property tax, and Maintenance fees
In some market like Auckland NZ, your interest alone will be way higher than the rent for the same house. For instance there are houses valued at over 1.2 million but renting for less than 40k a year. Interest on a million dollar loan is over 70k. Go figure. That's 30k a year the owner will be paying in dead money, oh plus as you mentioned hoa fees and insurance and council rates and maintenance etc. Now some houses are expected to appreciate over time and interest rates to come down. But if things stay the way they are for 10 years and appreciation is less than 10% annually on the house, then there is no sense in buying
LOL. a summary of what I've discovered years ago. I rather just rent, and invest my money, however right now any investment is kinda shaky... Been renting since 2016... All investment advisors say "don't put all your eggs in one basket", however when the average person is buying a house, they liquidate everything and put it in one basket, then they are tied down for 20+ years in a mortgage
You're forgetting 2 things, the house is an appreciating asset it most likely will increase in value. Also your not necessarily tied down to 20 year mortgage, you can sell when you want. In 5 years outside of a bubble bursting, your house will be likely worth more than you paid for it. I paid 265k for my 1 br Condo 5 years ago in NY, today its worth 330K. I'm paying $500 more a month than when I was renting, but my Condo increases in value by $1000 every month.
@@jefflewis4A house is a **depreciating** asset - don't confuse nominal returns due to inflation with real returns.
@@jcantonelli1 No, incorrect, over the past 50 years home prices have eclipsed the rate of inflation by 150%. If home prices rose at the just the rate of inflation since 1970 the median home price would be less than half of today's median home price. All generally irrelevant regarding an asset, if its value increases (regardless of inflation) its an appreciating asset. Cars OTH are depreciating assets because their values generally decrease.
@@jefflewis4 You can sell the house when you want? Yea tell that to the homeowners after 2008 who were upside down and couldn't do anything but foreclose. Buying a home is a risk and you can't always sell it to get away. You can become stuck or worse foreclose. Which then will affect your ability to even rent a decent place. Comparing your capital gains from covid is not ethical. I gained 150K of equity in 1.5 years. Definitely not the normal. Long term, home ownership just keeps up with inflation after calculating how often people end up refinancing, home repairs and maintenance, and interest paid, property taxes and homeowners insurance increases. S&P 500 index fund is better gains with WAAAY less hassle. You are renting no matter what, either from the government in property taxes, or from a landlord. At least a landlord takes care of the property for you.
Guys that own the property that rent out to you Love Guys Like you who are paying their mortgage, property tax, homeowners insurance, emergency fund for repairs, etc...making the owner richer in the Long run and you the renter poorer
You never own it, just leasing it from the government
Home "owners" triggered in 3...2..1...
Property taxes, upkeep maintenance utilities 😊
Living for FREE with parents is BEST! 👊
Being a trust fund kid is best. Hell of a good time
@@beatdown3361 Inheriting 100 million from your parents is even better.
Let me tell you you pay with your mental health! 😢
That would save me a 2k mortgage 🤣
There you have it
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
I suggest you offset your real estate and get into stocks, A recession as bad as it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short-time buy and sell opportunities too. This is not financial advice but get buying, cash isn’t king at all at this time!
You are right! I’ve diversified my 350K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $730k in net profit across high dividend yield stocks, ETF and bonds.
I just started a few months back, I'm going for long term, I'm still trying to wrap my head around it, who’s this advisor you work with?
Thank you, I looked up her name on the internet, and her information came up immediately. I drafted an email and scheduled a phone conversation. I'm hopeful that she will respond, and my aim is to end 2023 on a financially successful note.
We love you TechLead.
Thanks bro!!
Great analysis.
Speaking as a home developer myself find a home in a medium to well area so you wont hate your neighbours and area preferred detached with a decent amount of land on the house if possible. Lastly most of tge working appliances are good elec plumbing if its run down its ok because you woukd want to redecorate anyway
I don't know anyone that could pay cash for a house and of those I know are making an excess of $250k a year at their jobs and it's still not possible.
Most of the guys that are paying cash aren't necessary multi-millioniares. When you own 2-3 properties over the course of the last 15-20 years, you'll have cash handy when you happen to sell just one of them. In addition, there are lots of generation wealth moving around you don't know. these guys could be the average joe plumber living in a 1200 sq ft home
Great video. This type of content gives me hope for humanity.
Tech Lead is the realist ninja in the game! No fluff! Youre invited to the cookout✊🏾
Spot on!
12:10 wait... what??? Am I seeing this right?? Like I see 100k+ here? Per year? In tax? That is freaking insane! I get it that this is Palo Alto and the houses are likely multi million dollar houses. But bloody hell!
Random video request but can you make one talking about the clothing you buy that you feel is worth it. I see that arcteryx drip on you currently and curious on how you like it
I am recently buying a propery, the payment is just 1/5 of my income, close to the beach and a valley, even if I don't get to have it as my permanent residence, the deal is pretty good
Techlead and I have like nothing in common yet we both think exactly alike
It will never be cheaper than living with your parents.
I agree with most of what you are saying. It is important to do these calculations to make the best decision that is in line with one's situation. Very good and concise video also.
and avoid airbnb
Agree that houses should be bought in cash or else you basically can't afford it.
Especially with interest rates at 8%. On a 30-year mortgage, 90% of payments goes toward interest alone during the first 10 years.
Exactly
Offset accounts don’t exist in the US?
@@KrishTalksTech No, you're giving terrible advice. Invest your money and when you have enough to purchase outright then you buy. Your way is the stupid way. Most people don't like the advice because they would never afford a home, but that's reality.
That ties up a lot of cash in one asset which is usually not a good idea,
one good house is required, but mb additional vacation house in woods is good idea too. So far i think living in the city in apartments are so bad for you health.
You forgot about investment property depreciation.
My hands are fragile 🤣
You touched on it but renting is less risk. If the oven goes out, call the property manager. If the roof leaks, call the property manager. etc., etc. If in fact property vales are going to tank, as the last video conveyed, regardless of one's situation buying is a poor economic decision.
what if they suddenly want to increase your monthly payment? that is not safe
@@OM-pu9yi The same as the interest rate rising and a mortgage payment increases... You the high payment. However, when you rent you also have the option of moving. With a mortgage, it's significantly more difficult. One reason there are so many foreclosures, mortgagers cannot find a buyer. That's probably because the property is underwater.
There are up and downsides. The upside is it is someone else's property and they must do maintenance. The downside is the quality of that maintenace may be shoddy, since they want to minimize their expense. Also, there is the lack of tax deductions and appreciation over time.
Yoh keep calling property manager you will find your lease not extended I can assure you.
On the flip side if it’s a rental you can deduct all expenses and improvements. When you live in the house none of your expenditure is deducted
Depends whether u buy independent house/villa or flat in some society
What about the factor that a house needs upkeeping and also deteriorates over time? Many people who buy houses consider this factor hugely
Thans you ❤
In the Netherlands you can deduct a mortgage from income, reduce income tax that way. Assuming you pay income tax to begin with.
imputed rent is basically: if buying is cheaper than rent then buy
Wow, my friend in Sunnyvale!
My math for my current situation: I pay $2,100 to rent 2 bedroom apt. I have 130K in saving account which gives me around $370 interest per month. For the house with price range of 650K i will pay around $4,200 mortgage if I put 20% down. In my case I need 50% downp payment to pay around 2,300-2,500 mortgage. I will stay in this apt for 2 more years to save more money and than same house I will buy for 500K.
prices of houses will not stay the same for 2 years though
20% down on that house, 25 year at 5% is 3000k a month not 4200k.
A good idea. Interest rates will likely drop as the economy continues to slow. The Fed is targeting 2% inflation and we are close to 4% now. Once that inflation rate drops more, they will lower the mortgage interest rates. I don't think we will see 3% interest rates for homes for a while, but 5% may occur in the next couple of years.
what if in 2 or 3 years you would have to pay 1,300,000. then how would you feel. Basically explains Ontario Canada and British Columbia Canada. You would feel very very very shite.....is what you would feel. Have seen homes in ontario which sold at their peak ever in 2015 go for 500k, fast forward to 2018 and the same home with zero renovations or changes in zoning or anything...re sell for 2,000,000 and set the trend for the market prices of homes in the area....This insanity is real and has 100 percent happend in Ontario and British Columbia Canada, unlike anywhere else on the planet. Basically a home in a neighbour hood which you thought was easily achievable and not even that great of a neighbour hood to live in, is now 2,000,000 and completely out of your economic reach...It is disgusting what the Canadian government has 100 percent DONE.
well prices are not going to sit at the same place. In 2 yrs it will become unaffordable.
long live techlead
3:54 You live in Irvine? Why? Have you made a video on this?
doesn't the houses increase in prices as well, so your capital is still producing you income?
Definitely has been for us. The house is now worth 5-6X the purchase price. Plus, decades' worth of tax deductions.
It depends on neighborhood I live in an expensive neighborhood and only live here so my kids can go to an excellent school But buying here is 53 percent more expensive than renting And that does not even take into account the cost of maintenance Replacing roof every 15 years for example
Okay… so what I’m getting from this is that if I only have 30k in savings.. make 65k a year… and want to buy a 270k house in dallas with a mortgage interest rate at 8%… I shouldn’t do it? I should just rent? 😢
Bought house 10 years ago. Value is 2.5x more now, and rent is also 2.5x more expensive. Inflation is big criteria to take into account. What you can afford today might not be affordable tomorrow
Okay, but how much have you spent on mortgage interest, insurance, property taxes, maintenance and repairs, appliances, etc.?
yeah, but you bought it when it was cheap. Houses were cheap back then, especially 2010
Actually good advice! Thanks
The problem with that first graph comparing affordability is only comparing the first year of ownership. Your mortgage is fixed. Go ask anyone who has been paying on their mortgage for 15-20 years how much they are spending and it will probably be less than your grocery bill...Yes, owning is more expensive at first (it should be), but after 5 years? after 10?
Why it should be? its only because for profit for banks:D
Good point. I pay $750/mo. mortgage on my average-sized house. The required payment is only $695/mo. but, because this is so cheap, I throw in another $50 just to painlessly accelerate paying down the mortgage. Also, I'm repaying the loan with inflated dollars so it's even cheaper. FYI - my mortgage rate is 2.87%, so I'm not changing anything for a long time.
Remember that when you buy a house the scroll in that house increase every year
yeah but if renting is cheaper and you invest the difference, then long term it might not be a very different outcome
Average family in CA only spends 5 years in a home they purchased. This is likely not even the break even point nowadays so better hope for serious appreciation to make the closing costs of buying and selling worth it.
Just buy fully no mortgage if you can afford..how are other people not paying same tax in same neighbourhood😂😂
wondering on this too. only way you can get 50k right next to 3k is a Mansion next to a run down sh_thole?
actually check out his recent video "housing market crash". halfway through he's explaining how (in CA apparently but not my state) that people are paying property tax on he PURCHASE PRICE of the home instead of assessed value). that's going to change though and is the risk. but that's how they're paying so little. idiotic laws. how much lost revenue?
re: Imputed Rent - how does one 'rent' a house that they own free and clear? Put the house in an LLC and pay rent to the 'owners' (one's self)? Does this actually offset property taxes? Not sure I'm getting it...
this is hogwash accounting for taxes. It personally doesn't benefit you.
Living under a bridge in LA is better no payments, gratis.
For probably the next decade at least the average rate will likely hover around ~8.5-10% (based on historical examples). People will wish they'd bought sooner.
What makes you think the home prices will sustain or grow in a long term high interest environment?
@@matthewphillips5483 The law of supply and demand.
Wait, what does WeWork have do to with buying a house/appartment?
Commercial real estate collapse. It's not really related though. I don't see how commercial real estate translates to residential. I can kinda see how it affects banks who then tighten lending which makes fewer buyers.
thanks kojima
Nice analysis for buying homes with cash. I think it is more complicated with a mortgage, since you need to factor in the likely benefit of currency debasement over the duration of the loan. It is possible the rate of currency debasement will exceed the interest rate of your mortgage.
A mortgage complicates things quite a bit, all-around.
We just closed on our first home! We decided to buy for a few reasons. Rentals are nice for the reasons but we’ve had to move every few years as the our lease has gone up significantly when it’s time to renew in this area (our last place wanted a $500/month increase!) Buying means our monthly payment stays about the same and we are building equity. You have to consider first how much additional money you need to bring to the table when buying a house for closing costs! We had enough saved up for a 20% down payment but weren’t ready for all those surprise costs at first.
Congratulations on your first home! Good news is interest rates will probably go down again sometime within the next few years and you can refinance. So instead of having to pay more rent every year... you'll pay the same every year until you refinance, at which point you'll pay less.
So long as it's not financially irresponsible, the best thing someone can do is whatever they feel is the lowest risk. The reason I believe this is because it allows more headspace to be freed for higher leverage activity, allowing for more earnings and making up any likely difference. This, of course, is only true for commission- based work, whether that's running ones own business, sales, or something else
I feared a housing crash due to people buying homes above asking prices with little equity. If prices drop, affordability and potential foreclosures may arise, worsened by future layoffs and rising living costs. I want to invest more than $300k, but I'm not sure on how to mitigate risk.
I’m getting close to making an offer on a house and I’m worried about all of these sneaky closing costs!
@@EugeneLim-cj6vn Consider reallocating from real estate to stocks. Severe recessions offer market buying opportunities with caution, as volatility can yield short-term trading prospects. Not financial advice but it may be wise to invest, as cash isn't ideal in this period.
What’s the map he is using to check property taxes?
also wondering. pretty strange on the huge differences in a neighborhood. not sure how that works
@@orang3hill the 3k one was someone's garage. It's not worth as much.
@@foochs are you sure that's valid? the real reason I think is that I learned in California property taxes are based on purchase price, but it will be changing soon
HOA can also go up randomly.
If you do buy property, I'd highly recommend being on the HOA board. It's not a job anyone wants (usually), so it's easy to get elected. And it gives you much more control over your financial destiny.
And property taxes increase
And if you have neighbors like mine that set their house on fire then you can get random assessments for anything that happens to your neighbor's house.
For all we know inflation will outpace housing. Bread will be $20 and $200000 house be $600000. I think one problem that we live in a bit of a Truman show. There isn't much natural market.
Thank you TechLead. This video made me reevaluate and self reflect on what I want from life in the future. I need new life goals, the old ones are almost all achieved by now.
Do not get the fake hardwood flooring. You can refinish the real stuff multiple times.
Some better material is better
With the fake stuff, the materials are now so durable that you don't need to refinish at all. This is important for areas around the kitchen sink, which often get wet, and also for high-traffic areas like the entryway.
7:56 You are few ones who are “logically reasoning”. I come up with the same result. For me, I only rent. I am 90% confident I could make ~20% annual return “in long term” (decades) so it is not worth for me to buy a house. I make a few assumptions we are not going to WWIII, the US is not going to fall. Most houses will not give me 20% return annually after decades. 8:46 I believe you need to add the house insurance and maintenance. At the beginning, there is a down payment to lock up your asset to invest in the stock market. Since I never own a house, I am not sure how much it is.
I think one of the main reasons not to rent is so that you can't get kicked out. but the longer I owned a home the more I kinda think a forced mixup can be a good thing. 🤣 better to just do it yourself though. I customization front we were able to install a beach volleyball court in our yard. good luck doing that renting!
Insurance should be about 4k/year for a really nice house
@@orang3hill Homeowners always forget one large cost in their calculations...time. Not sure about you but my time is quite valuable.
I want a tiny house or mini house just for gaming so i can maximize my gaming with minimal work.
I use my investment property as a piggy bank. The goal is to pay it off as quickly as possible, but with a redraw in case you need the funds for a rainy day. Lowers your interest paid per month, which makes it a profitable venture (though you do lose some of that gain from income tax). There are two goals: have an asset that produces passive income (once it's paid off), and convert currency into an asset (so that it scales with inflation). The property is a simple 1 bedroom apartment, the kind I'd live in myself if I was single. The tenant pays $1200/month, mortgage payments are around $1300/month, with $550 being interest, the other $750 is paying the loan off (property is about 60% paid off). Yearly expenses from body corporate and rates is about $5000, maybe add another $1000 for repairs. So the total yearly loss is about $11600 (overheads + interest), and the total rental income is about $14400. So the property nets me $2800/year, while it's still being paid off, *and* its value will at minimum keep up with inflation over time given it's in a decent location. Finally, my goal is to pay it down to $80k remaining on the loan (property cost 250k), as after that it will only take 5 years for it to finish paying itself off just from monthly repayments (the time to finish paying off the loan speeds up the more that is already paid off, as the interest is charged in an inverse curve - higher at the beginning, lower at the end). Living in it would also work well, as my monthly rent would essentially only be the interest - $550 - as the rest of the payment goes to paying it off, so that's value I keep because I own the property. Compare that to being the tenant of someone else's property of the same kind - $1200 down the drain per month, with nothing to show it for at the end. And the fact that it's ultimately profitable for me to own such a property and rent it to someone else proves that ownership is the better financial choice, at least here in Australia (and at least for an apartment - houses tend to yield less rent). And keep in mind - this is as of now, after all of the interest rate rises. When the rates were lower a couple of years ago the property was twice as profitable.
🔥 I personally do both... Whenever i want my house condo back, will let my tenants know to move out the following year. Great content Thx.
If you can afford high down payment and buy up all the points to reduce interest rate it isn't that terrible as long as you find a market that isn't too hot right now.
You need 3x the marginal income needed to Rent vs Owning (*if your property is paid off). That is because Landlords ask for income 3X your rent. Yes, you still have maintenance, insurance, taxes as a homeowner, but the rate of change goes up by X, but the income you need to rent goes up by 3X, and incomes don't rise with inflation for most people
what about the lost profits of using the owned house? you could be renting that house you own.
They are both a ripoff in different ways. You just have to choose how you would like to be ripped off. No one wins in this life. Every decision we make is about how we would like to be ripped off, but no one is ever ahead.
WHO HURT YOU
@@ajones8008 lol
There is a way out, it is called government housing. You get to rip off the tax payers. No property tax to pay, 100% mortgage free.😂
@@weishi5286 I probably earn too much for that.
@@ajones8008the people who created this system for their own greed… that’s who lol I make around 85k a year in Florida and it fucking sucks… I’ve done the math… in order for me to live comfortably I have to be making 110k a year… and those salaries here in Florida are hard to get as most want you to show that you’ve gone to school/certifications… this is comming from a cyber analyst… or I could just move to a much shittier location and stay at the same salary…it’s a living hell. Especially as a one man army… no help.
King on internet , period
Never an issue for me cuz I could never afford a house in cali.
And, how is paying the mortgage and then paying myself rent any different from just paying the mortgage? Money going from me to me is a wash. Is he talking about tax deductible rent in the case of a home business, which is typically less of a deduction than the standard deduction? Really lost me on that renting to myself thing.
owning is still not owning. You pay Property tax and insurance. Still if you buy low it is worth it.
Rent vs Buy vs Build
Yes - building is the new buying.
The advice in the video is excellent and true for an ambitious person. It was easier for me to get rich when i learnt the method of diversification for my investment portfolio. Like spread my investments across different asset classes to manage risk. I focused on capital appreciation through high-risk, high-reward assets. Income-oriented strategies target regular income from dividend stocks and bonds. Used the value strategy to seek out undervalued assets for potential long-term gains. Worked magic!
This is really not as difficult as many people presume it to be. It requires a certain level of diligence, no doubt, which is something ordinary investors lack, and so a financial advisor often comes in very handy. That is how people are able to make such huge profits in the market.
Yeah. 'Evelyn Infurna' is my advsor; I was introduced to her by my partner. She has her contact information, but you could look into her background and get in touch with her directly. She is well-known and grounded, so it shouldn't be difficult to locate her page.
Run a quick online research with her name.
Evelyn Infurna
She is also really hot. Like really really hot.
In the UK I’d say it’s now cheaper to buy than rent, as long as you ca. scrape together a deposit.
Room for rents?
The interest cost vs rent calculation only works for the first month. After each payment the debt principal gets smaller and so does the interest. Rent never goes down, it goes up every year while the interest payment goes down bit by bit.
to zero while rent can become unaffordable in the future leaving you homeless.
Wow. Silly comment.
You are forgetting about property taxes. and homeowners insurance. Government loves to tax more and not reduce the taxes when times are hard. I have spoken with people who had to sell their property due to property tax increases that they could not afford. This is a form of renting in my opinion. Even if you pay the house off you always pay taxes and insurance that can increase. You are renting from the government. But with this renting you have to also maintain the property yourself. Also to add most people are not disciplined enough to pay their mortgage off in one shot and end up refinancing back to a 30 year to save money per month which costs them more interest. Or once they have that nice shiny equity in their house they find a reason to use it with higher interest rates on a second mortgage. Renting is significantly cheaper than owning right now with less hassle.
@@user-nl5le9id8v Do you really believe rentlords are giving renters free living, paying stuff for them? Nope. Everything the house costs, and that means every penny that it ever costs, is taken from the renter, as rent, an some 5-15% above that as it is a business meant to profit. The renter doesn't get any freebies living there. And the rent never goes away. Remember, the average person may live to be 80-100 years old. Tha't's 60-80 years of living on your own. You either pay rent eternally,, always paying for someone else's house, or you pay 15-30 years of your own, and then the rest 30-65 years you only pay the other costs, never again having pay the mortgage or interest to the bank. Also your lease is never up, forcing you to move from your home.
@@JTStream I’ve rented for most of my life and the landlords always pay for the repairs and upkeep on the property. I’ve never had to pay. Clearly by using the word “rent lords” you have a vendetta against landlords that is clouding your judgment lol. Most landlord I have dealt with are decent people just trying to keep a property to hand down to their kids someday and they really value a good renter. If you don’t trash the place or make a fuss for the Nieghbor’s they are quite happy with you. The Tennant’s I have met who hate landlords tend to be the ones who were awful renters.
Wow, Palo Alto has crazy property taxes.
PA is a costly place to purchase a home. It is one of the 30 most expensive markets in the entire country.
Live at home with parents until they pass away. Be a waiter....🤔🤣🍻😛🤪
Assuming you are buying a property with a mortgage as a primary residence. Definitely not tax free. You are paying property taxes to the county you live in. In my opinion that is still renting. You are renting no matter what. Either from the government in property taxes or from a landlord who takes care of the property for you. As well most people are going to be paying interest from a mortgage on the property. In most cases on a 30 year mortgage you are going to pay more than double the purchase price of the property. This is assuming you never refinance and most people refinance every 3 to 4 years. Either to take equity out or to got back to a 30 year to lower their mortgage payment which inevitably costs them even more interest because mortgages are front loaded with the interest costing you the most the first 15 years. On top of this you are responsible for all the costs of the home which an estimate is 1% per year of the homes value. Usually around $500 per month in home maintenance and repairs. Then by the time you actually pay the house off in 30 to 40 years (because of refinancing) IF you stay in it that long (most people move every 7 years) then you probably have to do a reverse mortgage just to live because social security is crap and so is 401k. So congratulations you were never a home "owner" just a glorified renter. The only way home ownership makes since is if you can buy it as a long term investment (meaning you are renting it out) and the property actually cashflows to cover the expenses. Or if you pay cash for a house you live in and plan to stay long term.
It is weird to watch a multi millionaire promoting Skillshare 🤔
putting all cash towards buying a house is just plain dumb these days. RE returns are way too low compared to stonks. Leverage is the only thing that makes it investable.
It is seldom a good idea to tie up a lot of cash in one asset like a home. Even Mark Zuckerberg has a mortgage.
True, but that's a double-edged sword - you know what they say about Liquour, Ladies, and Leverage... And not that I recommend it, but you can also get 2x overnight leverage on equities with most brokers.
my mind is not understandin why in some countries you have to pay property taxes if u own the houses... I mean a small amount yes, but not like this big numbers
here in Uganda as soon as you own a house, you don't need to pay tax for it for a life time
traveled here from the "Housing Market CRASH has begun... IT'S OVER." universe
OVA
You kill me 😂
who here can actually afford several vacation homes? 😂
only boomers could back in the day
@@OM-pu9yi wrong...some boomers I know can't even afford their own home...forget vacation homes !!!
yes, that's why I said "back in the day"@@sunflower-oo1ff
"If you're renting you can invest your assets." I don't understand what you're saying. The rent you pay is gone, you can't invest it. Also why do people always use the first mortgage payment to compare when the payments significantly decrease over time as your debt decreases?
He was saying that the money you save (both upfront and monthly) can be invested in the market. Index funds based on the SP500 have outperformed real estate over 100 years. Most all metro areas (in the USA, at least) have lower rent payments vs. mortgage payments for the equivalent home. This difference is the "savings" that can be invested.
@@matthewphillips5483 That's not the whole picture. You take a loan for real estate which effectively means you invest with leverage. A 10% increase on a $500k property that you bought with a $100k down payment still nets you a higher profit than a 20% increase on a $100k stock portfolio. I don't know which makes you more money right now but it's not as easy as just comparing the increases in housing and stock prices.
If you get a good deal on a house, in good condition, low maintenance, low taxes, low insurance, and pay cash, this can be a good thing over renting. Of course there are alot of variables in making a decision. I personally like the control of owning under the right circumstances.
Even when all the variables line up favorably, real estate is still an investment, and as such has to be compared to other investments (like stocks, bonds, etc.). Personally, I've been a happy renter for 20 years. I never have to worry about maintenance, landscaping or HOA fees. I can easily move if I find a better job elsewhere. I've invested all of my money in a market-indexed ETF, which has had a great run-up in the past 15 years.
This is an increasingly naive, Goldilocks scenario though "If the porridge is just right temperature, I think I will help myself to the bedroom as well"--very few and far between now to be able to purchase in cash a house that meets that description, unless of course you are a sub 1%er will a Million or more just laying in wait to cover all said expenses that inevitably mount up with every property.
Yeah the gov is not losing money on a theoretical rent transaction. You could just as easily freeload with roommates who pay rent and avoid the same cost. US Gov has traditionally incentivized home ownership thru favorable capital gains rules, writing off mortgage interest, etc. It does this because it's a net positive for a healthy middle class... which in turn results in MORE revenues to the gov. Edit: Great video!
No the govt did those rules because back in the day only the "right" kind of people were allowed to buy a home and since it would be racist to say a certain group of people should pay less taxes they attached them to things that those people could do that other groups couldnt like buy a home or buy land and those laws just stayed the same over the years. They don't give two shits about a healthy middle class. The middle class is disappearing and they don't care.
No coffee today?? Disappointed lol
Bought because I didn't want to be priced out again 😢
I don't know how he sits that close to the monitor.
Wow, imputed rent....I need to study that. Different topic: If you can afford to pay for a house in cash, why "save the 8%" when you can sometimes make more than that in the stock market? And if we are really in a bubble, that is some big baked in losses to buy a house. I still vote for rent....add to that, I do not enjoy home improvement activities (ha) and I like being free to move from an area.
I could swear I saw this video weeks ago
owning a house is your only shield from inflation
"Your best defense is your earning power" -- Warren Buffet
Not really. There are other investments (like stocks) that also keep up with inflation in the long run.
Unlike Seattle, Tokyo has affordable housing, & kids don't run around in packs, like stray dogs; Seattle should copy Tokyo.
I live in Seattle. I have yet to see packs of kids running around. Seattle actually isn't a particularly child-friendly city, since it's expensive and dense. People who want to raise a family often move to the suburbs.
Send the kids to Japan, problem solved 😂
Guru 🎉🎉
where your video about israel - palestine conflict. i search but not find that video anymore
Voice overdub at 9:20. Any lip readers out there want to chime in?
You should build instead of buy!
Yep - building is the new buying.
I turned fat from doing door dash I can't code because the paid training won't pay enough
Today I own nothing and happy. I had 3 rent investment incomes a nice salary job in tech etc. I’m happy “ not owning anything and being happy.” The more things you own the more attachment you have. If you want to invest in a personal home or rentals know everyone and their second cousin is doing it. You won’t make money off it as the average layman even those who have mansions aren’t either as techlead has mentioned it’s just a good safe long term asset but with that will come ups and downs, risk and work. It’s not as passive as it’s made out to be. Nothing that makes good money is easy. People should stop getting into all the multiple streams of income and hustle bandwagon that even in of itself is a bubble. It’s good to learn investments but people can learn to be financial secure and comfortable without delving into the next grand idea that everyone has already been doing. Start small buy as much as you can with cash down and slowly move up.
only a tech lead would open a terminal and use python to do basic math vs just using the default calculator app 😅
In United Kingdom it is always better to buy if you can, rent for same house is always more than monthly payments for buying... believe me, I am in the last five years of payments, payment from day one was less than renting- now less than one quarter of renting (20 years on)
Savings in UK are compounded over time😊
You Might want to redo your math
When you rent to somebody, you can claim so many tax deductions that you have no profit on paper when you actually have profit. When you sent to yourself, you get no taxbreak
Landlords hate the TechLead for revealing this one trick...