Everytime I spend money I can see and hear Dave Ramsey sighing in disappointment. 😩

@solid-data8826

4 жыл бұрын

😂😂😂

@Qichar

4 жыл бұрын

@@solid-data8826 That's a little unfair and an kind of inaccurate. He has said repeatedly on his show that it's about ratios. If you make a lot of money, or have a lot of money already, then he doesn't care if you spend it or not. He just advises people to live within their means. Borrowing money to maintain a lifestyle you can't afford is stupid, and Dave knows this. Dave said he has a friend worth over 1 billion dollars, and bought a car worth more than 400K. Dave said it's fine because it's like regular folks like us buying a biscuit.

@bettinaorevil5056

4 жыл бұрын

I don't spend anymore. I cut off doing my nails, I stopped spending on hair items, going out to eat, etc...

@ChrissyMarie45

4 жыл бұрын

Oh, my! I LOVE this comment! 😊

@callofduty60

4 жыл бұрын

Ice Ryda who cares, gotta enjoy life while you have it. Saving every dime you have won’t allow you to enjoy your life a whole lot.

7:36 "I want you to own your house - I don't want it to own you."

@danieltatum6560

2 жыл бұрын

you prolly dont care but does any of you know a method to get back into an Instagram account..? I was dumb forgot my password. I would appreciate any assistance you can offer me

I bought a house after the rent in my 2 bedroom apartment went up to 1700 a month not including utilities. My mortgage on my 4 bedroom house with garage and a yard with taxes and insurance is 1100. That 600 a month I’ve saved has updated and repaired almost everything in my home.

@leaundraeshepherd9170

2 жыл бұрын

I have a similar situation.

@unique1_4u

2 жыл бұрын

Sounds like Dave wants more renters out there to potentially rent one of his properties..lol

@danmchardy6424

Жыл бұрын

Out of interest, what is the term of your mortgage? Is it fixed or variable? How has your situation changed as interest rates have risen? Asking to get a better understanding, thank you ☺️

@m.b5777

Жыл бұрын

Now with falling prices and recession your house will be worth a lot less and you will be upside down on your mortgage.

@evan7329

Жыл бұрын

@@m.b5777 we have a fortune teller!! do me next

I've never seen rent go down...

@shellyd1811

5 жыл бұрын

Yep! NEVER! It only keeps going up! And you pay ALL that money out and own NOTHING.

@markg999

5 жыл бұрын

Because they dont. House paid for never have to worry about a rent payment or mortgage payment...its quite nice.

@barbaraleszczynski2214

5 жыл бұрын

I agree with everyone here......rent never, ever goes down, only increases. If you are determined to be totally disciplined and are willing to sacrifice those small luxuries...live frugally for a few years, buy a modest home, live rent free and in time you will reap and never regret the sacrifice you made thru those few years. Rent will kill you..you have nothing in the end.

@djflash7503

5 жыл бұрын

Mark G Don’t pay property taxes and see if the county comes for your home.

@mikiko2872

5 жыл бұрын

Rents went down circa 2008-2012. Been a renter since 2002! you need to shop around and sometimes need to move to get a better deal. The landlord knows when you are too lazy to move out to get a cheaper rent.

Biggest problem when buying a house is how do you know your job will keep you there 15/30 years . You might lose your job and have to flip burgers . Renting will cost you bit extra but you always free to go for job hunting in different area or even other states when your city have no jobs

@michaelh-co8zx

3 ай бұрын

U can sell your house and get a good amount of the money back

Dave, I THOUGHT I was ready to buy a house. I was pre-approved and had some money for a 5% down payment on an FHA. I talked with the lender about monthly payments and kept telling everyone I needed solid numbers and details about the loan. It was surprising how much run around I got. I’m so glad that I found you months ago and started actually taking your advice. If I hadn’t I’d literally be paying HALF of my monthly income on the house I wanted. As a single dad of two, I make a decent amount of money, but making that choice would have been extremely irresponsible at this point.

@fornos123

2 жыл бұрын

I bought my house and they told me my Mortgage was going to be $2,500 in Miami I didn’t like that number at all. So when I close the first year my Mortgage was $1,725 and the next year when they evaluated the taxes my Mortgage went up to $2,084 I can work with that

@415getActive

Жыл бұрын

u would of started of with low mortgage at 1st? then go up?

@GeloBetter

Жыл бұрын

If You Don’t Mind Me Asking Sir, What Kind Of Job Dp You Have?

@chrisalexander6278

Жыл бұрын

Wow you're not 60 yet?

@victorcretu7741

5 ай бұрын

If you can buy a home with a 5% downpayment, buy it tomorrow! If you don't, many will and the price will go up.

Been paying rent for 7 years... it’s never gone down. not once.

@crusherven

4 жыл бұрын

If it stays the same, that's down. Mine has.

@mitube4u

4 жыл бұрын

Right. Been doing it for 12 years and I'm finally at a place financially where I can afford a home and currently searching for a now.

@charleswoods93

4 жыл бұрын

Mortal Dao so by that logic your payments for owning a house are decreasing also? 🤔 stop it if you’re paying 1500 for rent and 800 to own, Dave knows how to do math. Stop blindly listening to stuff. Even factoring in the negatives of owning, you are on the process of OWNING! You can get served an eviction notice for anything and be out of thousands of dollars. Dave is amazing. Please do a little research before you believe anything

@twilightroach4274

4 жыл бұрын

I agree with Dave, if you are not ready don’t buy, wait until you are ready to buy then buy. When I bought my house 15 years ago my monthly payments were about 20% more than renting a similar property in my area. 15 years later I have paid 50% off of the mortgage price & (apart from corana19 adjustments) is now worth about a third more than what I paid for it & to rent a similar property in my area is now about 15% more than my mortgage payments & rising.

@kylenichols8944

3 жыл бұрын

Yeah if rent isn’t going up then effectively it’s decreasing by 2% per year. This is also assuming you’re getting your annual 2% raise to keep up. The difference with a mortgage is that A) you’re earning equity in the home, B) YOU see the appreciations in the value of your home, not your renters. Short term, rent is always more flexible and less risky, but long term ownership is always better. Always

I'm in SoCal and rent is essentially half of mortgage payments. No one can buy anymore.

Pray for me I'm just starting to save for my future home.

@watchmanexpert

3 жыл бұрын

You will be fine believe me .. I bought my house at 51 age .... and I regrets don’t buy it 20 years ago ... all my life paying rent for nothing

@jimwerther

3 жыл бұрын

@@watchmanexpert I bought in my 40s. But it is not accurate to say that the rent went for nothing.

Been renting for 35 years don’t own the door knob/ had friends bought in 90s in Southern California they are all millionaires and I’m still broke they had down payments in 90s

Family has been pressuring to to buy a house and I know that I am not ready and this just proves my point. Even though I know they have the best intentions. I know what is right for me. Thanks Dave !!!

@biancacarranza6484

5 жыл бұрын

Elizabeth’s Journey2.0 ugh I feel you, plus they think it’s so easy like it was for them

@Cahluvca

5 жыл бұрын

I think most arent rushing into homeownership but I think the stats say otherwise

@kevinkidneyy

5 жыл бұрын

Don't listen to them because they're not going to pay for anything. Wait until your ready

@CerronPritchett

5 жыл бұрын

Yep do what you want cause at the end of the day they aren’t gonna pay any of your bills if they are to much for you.

@kbanghart

5 жыл бұрын

I bought a home, and then eventually lost it in the big meltdown years ago, and now own another home 👍

So basically, owning is always better than renting, so long as you can afford it initially.

@lovefunkrockmusic

4 жыл бұрын

Nick DipaoloFan renting is equivalent to buying a 200 dollar car with cheap repair costs. It’s only temporary

@Hyperpandas

4 жыл бұрын

No, not really. Go look at a place that you might buy and calculate the following over the course of a year: 1. Interest costs, 2. taxes, 3. 1/2 to 1% total home value for maintenance, condo fees (if any), then divide by 12. If the figure is higher than what you'd pay in rent, then you should rent. If it's not, then check to see how much property value in your area is likely to grow over the next while. If a lot consider buying, if not see if you'd be better off renting and investing any extra money in stocks, etc.

@christinab.2864

4 жыл бұрын

I can’t think of a house mortgage that’s under a 1000 dollars a month

@Hyperpandas

4 жыл бұрын

@@christinab.2864 You have to separate out the equity from the mortgage to get the number you compare with rent.

@christinab.2864

4 жыл бұрын

@@Hyperpandas that’s sucks unless you used the bank loan for the house mortgage which sounds like what you’re saying

Some people enjoy renting some enjoy buying a home. I prefer renting, I have plenty of space all amenities, huge balcony, fireplace, W/D. No debt. I like the idea of moving if I want to and not having to worry about repairs, maintenance. I also think owning a home is awesome if that fits you. Namaste 🙏🏿💙

@jeremyncrm2012

3 жыл бұрын

I agree but I also don’t know why people expect him to say anything different than buy a home. Guys a realtor!?

@feliprea5504

2 жыл бұрын

Hello India Simone, I hope you are having a great day. I read your comment and as far as "No debt" I believe you do, you just will never see a return on the rent you pay monthly. Your monthly rent is your debt. Like he mentioned you are paying the landlords debt and he is the only one getting the monetary benefit. You on the other hand unfortunately will never see those benefits.

@jeremyncrm2012

2 жыл бұрын

@@feliprea5504 having somewhere to live is a return on your money. It may not build wealth like owning, but renting certainly has purpose and can be right for some situations.

@indiasimone6645

2 жыл бұрын

@@jeremyncrm2012 Hello Fenix, wow I was about to say the same thing💯.

@indiasimone6645

2 жыл бұрын

@@feliprea5504 Hello Felipe Rea, yes I'm having a great day, I hope you are as well, as Fenix mentioned and I absolutely agree, I am seeing the benefits of my rent by having a safe healthy place to live, I could care less how much money the owner of my apartment has, no matter the type of living arrangements, no place to live is free, I enjoy renting and not being cash poor and that works for me, just like owning works for others.

I worked with a guy who lived in the same house for 20 years and rented it the entire time. He made a good living and his wife was a nurse who also made good money. When I asked why he rented, he told me that renting freed up money. He had already purchased and paid off a retirement property. Since the property was by a lake, they used it as a summer house while they were still working. He said he wouldn't have been able to do that if he had to pay 10K for a roof repair like his landlord did two months earlier.

@alexandersummerville5003

Жыл бұрын

so for 20 years he didn't gain any equity, how smart

@m.b5777

Жыл бұрын

@@alexandersummerville5003 but his other investments ballooned

@Dailyfiver

Жыл бұрын

@@m.b5777 he could have ballooned his other investments and his house if he owned it lol.

@madamshay749

Жыл бұрын

He lucked up by renting in a property where the landlord didnt sell the house causing he and his wife to have to move out and start over again in a new home. Thats my current situation and its very stressful.😢

Smartest thing I ever did was save, save, save, save and I bought my first house with a 50k down payment at 26 years old. Thank you God and my parents for helping me do this :)

@themichaelferrari

4 жыл бұрын

That is smart. Congratulations! I wish when I'm 26 (4 years from now) I could buy a house just like you do. You inspire me and give me hope. Thanks!

@JEBalynce

4 жыл бұрын

caligal2010 you are blessed

@richardsanchez9190

4 жыл бұрын

Have you almost paid it off?

@caligal2010

4 жыл бұрын

@@richardsanchez9190 no not even close lol. But my house is worth is $280k and the loan is $165k, so I'm planning on selling it within the next year for a hefty profit

@richardsanchez9190

4 жыл бұрын

@@caligal2010 nice. Congrats. 165K that's cheap. What state did you buy and when?

I think both have their pros and cons. Renting has more flexibility with the job security nowadays. While owning gives you more privacy. Just buy what you can afford or even less.

@jonhennemann4729

3 жыл бұрын

But if you loose your job, there are a couple of people like Airline Pilots that literally might move anywhere in the country for a job. If you are an Accountant in LA are you really going to move to NY or find another Accounting job in LA.

@saulgoodman7858

2 жыл бұрын

i have privacy rentin.

@Ewalk.213

2 жыл бұрын

@@jonhennemann4729 if you lose your job how are you gonna pay rent?? This argument has holes in it. At least if I can't pay my mortgage my lender will work with me where as most landlords will have you out on the street immediately and find a new renter. Also, if needed, I could sell my house and bank the equity if it came down to it. Way more options by owning

@adubber97

11 ай бұрын

How would owning give you more privacy? It’s not like your landlord lives with you when you rent 😂😂😂

@KatieBellino

10 ай бұрын

@@adubber97 There are typically other tenants in a rental house/building. In one apartment I had, the old woman lived below me and totally made tenants feel watched/afraid to live in their own units.

I love how Dave continually talks about subjects he's touched on. Its nice to be reminded of them, hear them again, and hear his updated opinion.

I love when Papa Dave's southern accent comes out. That's when you know its real lol

@fljetgator1833

5 жыл бұрын

@M Detlef .. Incorrect. He is a Tennessean .. Get a grip. Don't be sad. Dave is Southern. Not a yankee. 😉

@greenearthblueskies8556

4 жыл бұрын

M Detlef 😂

@HoweyJR_

4 жыл бұрын

@@fljetgator1833 Yankees are betta💯

@fljetgator1833

4 жыл бұрын

@@HoweyJR_ .. 🤔 ah fugettaboutit

@HoweyJR_

4 жыл бұрын

@@fljetgator1833 lol just talkn ish bro

You can if your looking a few years ahead. I bought our house for $90k in 2014, my house payment with taxes and everything is $720 a month. Our rent at the time was $850 and now at the exact same apartment complex it is $1500. I'm am so freaking thankful that we bought our house because theres no way we would have any kind of future paying $1500 a month.

@paulconner4614

3 жыл бұрын

That is the upside, you lock in about 80% of your monthly cost. (excluding maintenance costs )

@MarkDanger777

3 жыл бұрын

The only thing that's hard is the down payment, well actually where I live a 1 bedroom cost 300k. So mortgage plus everything cost 2k, and my rent cost 1.2k

@415getActive

Жыл бұрын

see what im saying does he not factor in the price of rent?? it's $1800 now in California

I think renting vs buying is ultimately a lifestyle choice. If you If you plan to move a lot, or if you don't want to bother with things like mowing the grass, then renting is probably better. If you want to settle down for a long time, and you need more space, then buying a house is probably best.

@priscillastephens3978

2 жыл бұрын

This is the BEST response I've seen on here. I totally agree! It all comes down to it being a "lifestyle" decision. Like you stated, not everyone wants the hassle of the maintenance. I'm more of a pick-up-and-go person. I don't want to deal with mowing grass, snow blowing my driveway, etc. I don't care if I own it. It just doesn't fit my lifestlye.

@kino7539

9 ай бұрын

Condos have building maintenance

I understand... people don’t take account to expenses that come into buying a home. $10k to fix a roof, $10k to change the furnace. It’s a lot of money!!

@phattonez

3 ай бұрын

Yeah, and the rent covers all of it. The landlord isn't running a charity.

@paulgibbons2320

16 күн бұрын

Yeh we do. Then we see them treble value in a few short years. I would take that deal all day long.😂

This video matured so well

I just had to fix a roof and get a new hvac system in the same year. Dave is right.

@ChrisMFlorida

5 жыл бұрын

Yep.. I've done those.. 6k ac and 5k roof.. people forget about that.. lol

@bassinoutdawg4515

5 жыл бұрын

But that could also be because you didn’t look in the house deep enough before buying if you are smart about what you are buying it is a way better investment than renting an apartment

@tatripp

5 жыл бұрын

@@bassinoutdawg4515 That's definitely part of the problem. Since I've bought the house, at least I've learned a lot about what to expect next time I buy one.

@Cmorrison626

5 жыл бұрын

Yeah but you shouldn’t have to make either of those purchases again for another 20 years and they increase the value of your home should you decide to sell before then.

@aquariaaustin2077

5 жыл бұрын

Well, that's not true, either. It's easy to say you shouldn't have to buy a new roof within X years...until you get hit with a freaky, once-in-a-lifetime storm that damages your roof. Even newish roofs can sustain massive damage from storms like that. If you have good homeowners' insurance, that will get covered. That's why it's important not to cheap out on that homeowners' cost.

I bought my house exactly 2 years ago. I hate to think how much I wasted on rent over the years prior to that, but I know that I wasn't ready. Not only do you need to have a considerable down payment, but you need to have some money put away for repairs. About 6 months after I bought mine the water heater needed to be replaced, and that's an extra expense that would have broken me 10 years ago.

@xraceboyex

3 жыл бұрын

How much you were wasting on rent, huh? How much you paying in taxes on top of your mortgage now that you own?

@PardonMyPresence

2 жыл бұрын

@@xraceboyex did you consider that landlords add the property taxes into your rent?

@texastitan6567

2 жыл бұрын

@@xraceboyex yea but your mortgage is going into equity. At the end of 30 years of renting you have nothing and the end of 30 years of mortgage and taxes you own a home worth hundreds of thousands

@RuReady115

2 жыл бұрын

Now you’re stuck in your investment

@89whodatcha

Жыл бұрын

@@texastitan6567 yea but no one should be going to into renting for 30yrs. I’d say renting is just a short term option before making a purchase

The minute something goes wrong in the house a renter calls the landlord. The minute a homeowner has a problem he/she can't fix they open their checkbook. We bought a house in our early 20s and have spent more on maintaining and fixing than we would have in rent. We just made a purchase more than our mortgage to fix a problem in just one room. Eventually it will pay off but we have been reduced to tears many times when something unexpected went wrong or we just felt stuck in a home that needed so many improvements. Wait until you are truly ready to buy and be ready to pay twice your mortgage in maintenance and repair. If we had waited we would have chosen differently and be better prepared financially and emotionally for the challenges of home ownership. It has taken more than a decade for our home to move from more curse days to more blessing days. We will definitely not push our children into home ownership until they can accurately weigh the costs and benefits.

@Exxon300

4 жыл бұрын

Eureka Hope Thank you for your wisdom

@crystalcormier9376

4 жыл бұрын

Thank you so much Eureka. You just gave me confirmation dont rush into buying home. Take your time doesn't matter what age or season of life your in. God bless❤🙏

@wow1022

4 жыл бұрын

well, it depends on the age of the home, buy an old home then get ready for having to fix it.... also you have to have a questioning attitude while viewing the home... such as asking the age of the roof, the age of the air conditioner are big ones

@Layman927

4 жыл бұрын

Uh If you got a proper home inspector they should be able to identify any issues that would turn into problems that cost more than your mortgage payment. You get what you pay for.

@chrispurdie4282

4 жыл бұрын

Any landlord who has been stayed in business is just adding those expenses to your rent every month. Every repair dave talks about, the landlord took into account when pricing rent. And in addition to all of the ownership costs, the landlord needs to make a return on the property, thus rent will always be higher than ownership

Thanks for another RANT Dave!!! Always good to hear what you have to say on a topic!!!

Love this! Dave has the right idea. Long term BUY! Rent is great for temporary situations until you can get into a proper situation to buy.

Paid cash 47k in 2013, now worth $135k. Never had a mortgage payment and never will. 🇺🇸

Renting is good for short term, as dave recommends. If I don't have the down payment, nor the income and savings to back it up, I won't buy. Rent cheap as possible near you, and set a plan to buy a house within your means, with a back up savings for any big issues that may arise with a house. It's a pretty simple concept.

@Cleric775

4 жыл бұрын

Not many people know that.

@BriLoveMusic

4 жыл бұрын

Only single people who live in the suburbs think that way. 😆 I wish it was that simple.. . . .

@Bloodspiller777

4 жыл бұрын

What's short term?

@fahd3228

4 жыл бұрын

Or just don't buy period . rent cheap stay debt free and free up your money + invest

@christinab.2864

4 жыл бұрын

Bloodspiller777 one answer when your in debt

Increase your income and decrease your spending to where buying or renting a home literally has no actual influence on your life.

@derekdgarcia1

4 жыл бұрын

Agreed!

@dancer1

4 жыл бұрын

Yo what?

@Mist_R

4 жыл бұрын

The more we adapt and adjust our budget the more they push it.

@roxannesantos8918

3 жыл бұрын

Im a teacher.....i would love for you to tell the govt to increase my income. ..yeah its not that simple

@Mexicobeanpole

3 жыл бұрын

Roxanne Santos Side hustle. EVERYONE should have at least one these days. Unfortunately, a fact of life.

Except when interest rates leap up. Buying in LA right now is definitely more expensive than renting.

I’d much rather be broke paying my own mortgage than being broke paying someone else mortgage.

@marcus.H

Ай бұрын

Interest is lost forever just like rent

@mrs.demetrialewis2730

Ай бұрын

In the end, the house will be yours

I have a rental property. It costs me a mortgage of $715, but it currently rents out for $1,150 with nothing included. Starting in August the new rent will be $1,200 with nothing included. My property is 4 houses from the University campus. It will always be a hot commodity because people don’t want to drive to class, pay for a parking pass, etc. I also rent to adults because it is right next to the highway to get to work quick. I’ve been renting this house since 2011. Never had an issue renting it out. I’ve spent about $2,000 in repairs, but I’ve collected nearly $100,000 in rent and paid roughly $72,000 in mortgage including taxes and insurance. $100,000 - $74,000 = $26,000. Not too bad. I plan on selling it when my kid is about 16/17 and using all that equity for his college. That will be in about 10-11 years.

@sisteroftheagiel1

5 жыл бұрын

elmagnificodep are you paying off the house (the place you are renting)? If not, how long will it take you to pay it off.

@elmagnificodep

5 жыл бұрын

sisteroftheagiel1 I’m paying a mortgage. I’ve owned the house for over 10 years. It would be paid off in 2039. I put extra money on my house. I just bought a used $30,000 truck less than a year ago. Thanks renters.

@aleks9809

5 жыл бұрын

U made 26000 and bought a 30000 truck? How did renters pay this? 🙈

@elmagnificodep

5 жыл бұрын

aleks Seriously? I have a job too. 🤦🏼‍♂️

This is great advice. I needed this to decide whether I need to keep renting or buy. Thanks Dave!

I would have bought a home about 6 years but realized that would have the biggest mistake ever! I know rent can be high and and it goes no where but up. But you cannot just only think about the rent payment. Owning a home has so many additional expenses, insurance, roof leaks, refrigerator breaks, etc. And when that happens for me I call the property manager to fix it because that's part of my rent. It will be more of a benefit for me when I'm closer to retirement. Putting more than 20% down on a 15-year mortgage with a fixed rate and with mortgage payments no more than 1/4 of my income. Thanks Dave.

Hit the nail right on the head. Short term vs long term.

I remember 20 years back my dad got a house for 25k $300 a month now these prices are over 100k and $1500 a month

@2inchfromtheground

5 жыл бұрын

Mongol IIIX i remember 4 years ago when I put 20% down and got a mortgage for 1529/mo on a 15 fixed note. My neighbor did 3.5% down, 1500/mo on a 30 year note

@Mayanbandz

5 жыл бұрын

300K In MD

@giovanni4399

5 жыл бұрын

My parents paid 68k back in 1996 the neighbors house just sold for 255k smh and then they ask me why I haven't bought a home yet as if 3/2's are still going for 70k

@djflash7503

5 жыл бұрын

Mongol IIIX what was the income 20 years ago compared to what it is today. You can’t compare.see what the average mortgage was 30 years or 40 years ago and your dad would’ve thought that was cheaper.

@aquariaaustin2077

5 жыл бұрын

Your dad made a lousy deal. We bought our house in the 90s for around $93K. Our mortgage was less than $1000 per month, which was what a nicer apartment in our area cost, but none of them had nearly as many amenities within walking distance of our home. We had to refinance when my health went south, and now we pay less than $900 a month. MINIMAL rent in our city is $1200/month. And the house will be ours within a few years. We're still ahead of what renters in our city will ever have.

I had been chasing a 20% down for the past 12 years. Seems every time we sign another years lease with a rent raise, the prices of houses shoot up. This was in Southern California. We moved to Vancouver, Washington right before the pandemic. The cheaper rents let us save more. The price of a house that wasn't a fixer at the time in our new location was around 350K. Now they're 500K. I can never seem to get up to that 20% down Dave wants us to have. Other than that, we're debt free and have a 6 months savings.

@HotelBravo556

2 жыл бұрын

Yep. Dave is wrong on this one.

@415getActive

Жыл бұрын

what the benefits of getting that 20% down?? no mortgage insurance? fixed rates??

I’m living check to check and just found you and a ton of what you say makes perfect sense to me and I’m beginning to apply it to improve. We own our home, Paid for. Just poor spending habits and accumulating debt has knocked us back to step 1.

Most home buyers underestimate the amount needed for upkeep. If you add in a reasonable amount per month (1-3% of the value of the house per year) for repairs and maintenance of a house plus the work involved in yard care, insurance and property taxes, you often find it's much closer the current renting market.

Economics don't balance anywhere near as fast as Ramsey would like you to believe. I moved to Nashville into an apartment (2 br/2ba, 1275 sq.ft. townhouse, no garage) costing $1050/mo. Within 3 years, the price was $1700/mo. I bought a townhouse condo (2 br,2.5 ba, 1405 sq.ft. with attached garage) with zero down for $1150/mo. Including interest, taxes and HOA.

@CasualGamerGirl77

4 жыл бұрын

Sounds like temporary/first-time buyer incentives. Adjustable interest rate? Taxes of course will fluctuate and HOA is the devil. TH's are a dime a dozen around Nashville and return on investment as good as a trailer.

@nicolebermudez4855

4 жыл бұрын

Girlie Gamer what do you mean?

Pretty clear most people who “own” homes should be renting and many of those renting should continue renting unless you meet all the metrics Dave has repeatedly told us. I remain a poor saddled with debt and I will rent until I work through the baby steps. Pretty simple stuff guys.

The worst part of homebuying is that if it takes 30 years to pay off a mortgage the house basically costs twice as much as what's on the deed, so it's buying 2 , getting one. Despite this, i hope i never have to rent again

@1:03 the Bert & Ernie voice is hilarious!!

I am staying in a rental house and build up my financial basket. I don't want to swim myself with housing loan debt paying interest 20 30 years. Thank you Captain Dave for this eye opener 👍

@jamessamy

3 жыл бұрын

@@sunnyd4734 thank you for the insight. Definitely a good way of leading a better life staying rental.

This was a question that I was asking myself frequently!

Thank you David, great insight.

Renting = no mowing, no appliance replacement or repair, no property taxes or home owners insurance, no large initial down-payment, no strings attached you can leave after 1 year, incredible mobility. Cons= much less privacy, less space, usually less quality than a home, neighbors, utility fees can be much higher than you'd expect for an apartment.

@bobbyb7672

5 жыл бұрын

I'm pretty sure all that is included in the rent. Matter fact, you paying for all of that plus a profit for the homeowner.

@NUCLEARARMAMENT

5 жыл бұрын

You can get a 4,500 sq. ft. house with a basement for $2,800 a month. I think I'll take that over buying. IDC about equity BTW.

Being able to work on your own home is a blessing. I'm a plumber and work for a mechanical company. I can replace every pipe, water heater, furnace and AC in a weekend, For under 4k. Not to mention any small repairs.

Repairs, utilities, taxes - almost always these will close the gap between rent and mortgage payments.

Thank you. You have cleared things up for me.

The rental houses that I own were old fixer uppers, purchased between 1984 and 1990. I did most of my own repair work. My mortgage has held steady, but rents have increased. While building new units under today's building codes and zoning requirements is prohibitively expensive, maintaining what I already have is not.

Never buy adjustable rate mortgages. They should be outlawed

@raheelakhtar7

5 жыл бұрын

Lugene Parker i got an amazing 2.25% 7 year ARM! But I didn’t kid myself that the rate will stay flat at the end of 7 years. I will refi or pay off the property (haven’t made up my mind yet).

@joshn2342323

5 жыл бұрын

@@raheelakhtar7 pay it off because the the new rate you'll get will be some rip off rate. That's why they give you so low rate on the first part of the loan. It is is called a "teaser" rate for a reason.

@mooman333

5 жыл бұрын

@@joshn2342323 simply refi with another institution

@icecreamladydriver1606

4 жыл бұрын

@@raheelakhtar7 If you can pay it off then pay it off. It will be a great investment. We don't regret doing that at all.

@MoMo-00

4 жыл бұрын

What is adjustable rate mortgages?

I’m all for renting if it’s significantly lower that owning, this allows you to save for a bigger down payment and emergency fund.

Telling people the TRUTH is why I always listen !

Only buy a home if you can AFFORD it (obviously) 🤷‍♂️👍

@coldfire39

5 жыл бұрын

Chris Invests so much insight. You should start a podcast!

@LiftingGunsBibleTradition

5 жыл бұрын

Wow so deep 🎓 You must have a PHD or something!

@ramdytravels_

5 жыл бұрын

Even if it seems like a logical thing, people are stupid and naive enough to just jump into it just because everyone else has it. lol

@joshn2342323

5 жыл бұрын

People have slowly been trying to change the definition of what "afford" means lol. Been hearing lots of talk about how you only need 5% or 10% down now.

@insideoutsideupsidedown2218

4 жыл бұрын

Ramdy Salimbacod you can say the same thing about renting an apartment

Thanks for the honest and authentic perspectives. People keep judging and shaming us for not wanting to buy a house right now. I tire of it. But the rental rates are always a mess too...IT'S JUST DEBT EITHER WAY!

@Egilhelmson

Жыл бұрын

If renting is creating debt for you, Wolfgang Amadeus, you need to find someone to pay you to compose a Requiem Mass.

One of the happiest and proudest moments in my parents' lives was the day they moved into their new, fancy house that was on the fringe of what their income could support. One of the most devastating and humiliating moments for them was when they were forced to sell it less than 10 years later after one of them fell ill and couldn't work for a year, and they couldn't make the mortgage payments. I'd never seen my parents broken before until the day they had to move: the sadness on their faces is seared into my memory. If they'd just waited until they had a bigger down payment or gone with a more affordable house, I firmly believe they'd still own it. I'll never buy a house until I know I can genuinely afford it: the 1/4 net income rule is a good one.

@JoseGarcia-xt6km

5 жыл бұрын

Wow sorry to hear that😔 will keep your parents in our prayers

@aquariaaustin2077

5 жыл бұрын

That happened to us. I've had a long battle with multiple health conditions, including cancer, and couldn't work anymore. Know what we did? TALKED TO OUR MORTGAGE LENDER, and they helped us refinance with terms that kept us in our house. We were ahead on our mortgage, so the refinancing merely took us to the 30 year term that we originally signed up for. It was worth it not to lose our home when disaster struck us. If I'm able to work again, we'll go right back to paying ahead on the mortgage. Right now, I can't, so paying ahead is tough for us, as anyone can imagine, but it's what we're shooting for.

@stevenmorris2293

4 жыл бұрын

Sorry to hear that. The house payment must have been significantly greater than rent payment. here in San Diego buying is about the same as renting.

Definitely appreciate this advice! 🙏🏼

Capex is figured into your rental payment, but not your mortgage. As a prospective home owner, you need to factor in the cost of big ticket items into your cost of home ownership. For example, if the roof costs $5000 to replace and lasts 20 years, that's about $21 per month. Do the same for things like heating, air, fridge, water heater, etc. and then you can compare it to rent.

I needed this. Thanks

Dave, in theory your advice makes sense but in reality I have never seen rents go down in major city’s. I live in Canada, Toronto Ontario to be exact and as long as people keep immigrating here (and they will) the rents and the cost of a house will never go down, it’s been this way for quite some time now. I know major metropolis’s in the states have the same issue.

"Big companies would have bought all those houses up and doubled their money." Yup, that's what happened and now a roach apartment in the ghetto is $2,000/month

Our mortgage is half of what rent is for the same size apartment in san Diego. A same size house is almost double. Same neighborhood.

@bobbyb7672

2 жыл бұрын

Same here.

I moved out my 2 bd room apartment for $1100 and bought a new comstruction 4 bd rm house for $1100 mortgage. After 4 yrs my home value went up by 85k. I dont think I would of been able to save 85k while still paying for rent payment.

@awaisus

2 жыл бұрын

How much total interest will you be paying on your house by end of your mortgage payment. Multiply your house payment into 30 years and see how much you are paying for your house.

@avalentine7045

2 жыл бұрын

@@awaisus multiply the rent payment over 30 years with no asset. Who will have a higher net worth?

@davidcomeau6308

2 жыл бұрын

@@avalentine7045 add in maintenance, time spent fixing things, renovations, taxes, hoa, insurance...you still may he ahead but there are alot more variables to owning....

Never seen rent go down in Alaska. Got a house at 21, In 8 years I've managed to be $300 under renters. Brand new house back in 2011, only 1000 sq feet. 156,950 at 3.5% 30 year fixed.

Thank for this video. I really needed this.

So helpful. Thx Dave!

The key is to rent and move every time your lease is up and chase the deals. Move to a complex down the road, then move after that lease up, when you renew they hurt you.

This is very relevant especially with the threat of the threat of a global recession. It's on all of our minds

Thank you for sharing this.

I just got a pile of cash from stock options after a buyout. Not enough to pay off the mortgage, but enough to reduce my mortgage to 58k @ 1.79% fixed and have it paid off in 35 months. I’m 43, debt free other than the mortgage, put away 15%, and have a 3-6 month emergency fund. I wish I had discovered this channel in my 20s - I’d be a multi millionaire by now. I think I can become a millionaire in my mid 50s. New life goal!

I worked for a top real estate broker for about 7 years, so this conversation has always fascinated me. I'm not ready for home ownership quite yet and Dave provided some good insight on why it's situational.

100 percent agree. Homeownership isn’t cheap

@patriciabrown8666

4 жыл бұрын

SL Life Equity is always good vs apartment nothing and no investment RENT GOES UP!!!! 🙅🙅🙅🙅🙅🙅

@JoeLopez

4 жыл бұрын

SL Life yes! And home ownership is NOT for everyone

Very good advise .Thks

I lol'd when Dave brought up the receipt hanging out of the gas pump!

Dave's house buying principles are very conservative but you can't really go wrong with them 😀🤷‍♂️

@canman5060

5 жыл бұрын

It is better be conservative than saying a late big sorry later.

@mkite715

5 жыл бұрын

Chris Invests i wouldn’t say conservative I would say smart and common sense. Don’t buy a home until you’re debt free with a fully funded emergency fund and a good down payment. And a 15 yr fixed mortgage where the payment is no more than 25% of your monthly take home pay. Anyone here who disagrees bought a home with lots of debt, little saved and a 30 yr with way too much house they’re trying to justify it!

@EmpireTextbooks

5 жыл бұрын

Chris Invests buy a rental property with all cash? Yeah good luck even saving up for one in addition to paying the mortgage on your primary residence within your lifetime. Dave is conservative to an unreasonably high degree.

@ferich2001

5 жыл бұрын

It really only works in area that doesn't have a land shortage.

@jamesl.a.n6394

4 жыл бұрын

Lar M I trgjn.

The juxtaposition of Dave Ramsey going hard with light elevator music outro is golden

The way I see it. Unless your house is paid in FULL, you're a Loan Owner. Banks forecloses , landlords evicts .

@alextogo8367

3 жыл бұрын

You can still make some money on a foreclosure though.

@Jasmine-pi7fq

2 жыл бұрын

Yes! Agreed! Good one here

Great and helpful info.

Except for the fact that a lot of rental properties being built are freaking luxury rental properties at $3,000/ month

@kellybrady7863

4 жыл бұрын

big city?

@momofmany9954

4 жыл бұрын

@@kellybrady7863 no lol. My husband just took a new job and 2 bedroom 1 bath townhomes near his job in the suburbs of Michigan are going for 2500 a month. We have 4 kids and we WANT to rent..

@micheleD498

4 жыл бұрын

$1200 2/1/1 gated condo rental in Orlando. I'm working through my baby steps happily... Living less than your income is key

@Brittanybavery

4 жыл бұрын

Exactly! There are few very rentals under $2000 and we live 30 min from the biggest city near us

@bettysmith7045

4 жыл бұрын

I don't even live in a big city, and the closest big city is about 50 miles away, but the rents for a 2 bedroom apartment are still around 1800 and up!! Renting to me makes no sense if you are ready to own a home and have your career set, and you are making adequate income.

I am thinking of buying a van. It is basically 2 in 1 deal ... house and a car. Will save me a lot of money in the long run.

@scotland369

4 жыл бұрын

Its a great idea if you don't mind living like that! In a relationship though, it won't work

@nightfury8440

4 жыл бұрын

@@scotland369 If you find the right girl it will.

@shestudios

4 жыл бұрын

I am with you on this.

@shestudios

4 жыл бұрын

@@TheGreatGadfly Free, but still taking it out of my paycheck. 😂😂😂

@shestudios

4 жыл бұрын

@@nightfury8440 If he finds the RIGHT girl she will understand. Love a man who is a good steward.

Huge part of being able to retire is having the mortgage paid off. If you get in a home at 30 years old and just do minimum payments for the 30 years it could really help set you up to retire at or around 60 and focus extra income on other investments all those years. Go talk to people who are in their mid 60s that still have a lot left on their mortgage and see what they have to say.

I live by an Air Force base. This military pays for service men and women to rent houses in the area. Right now they give them 1200 to 1500 a month for rent.. the base is also expanding and rent will go up. The rent will ALWAYS be 1200 or more.

I live in California and I’ve never seen it play out that way, the rent price never corrects. In 2008 a lot of people lost there homes and those people could no longer qualify to get new homes witch created a massive influx of renters, this is a multi decade issue that is still not being felt with. More millennials are loosing there homes than buying new homes.

@jameswhitman3934

4 жыл бұрын

This is because comiefornia has massive restrictions on new buildings, and renovations, as well as crazy high taxes that limit the free market's ability to correct for such an uptick in pricing. Unless your livelyhood depends on you staying there, move now and realize how it got so bad in the first place so California politics don't ruin the state you move to.

@Ewalk.213

2 жыл бұрын

Yea I've realized that I have to take some of Dave's advice with a grain of salt while living in California

@laughoutmeow

2 жыл бұрын

My dad bought 5-7 homes in bay area during the crash and has made him millions now.

@Ewalk.213

2 жыл бұрын

Based on Dave's principles I'll need to have around $250K annual household income to buy a decent home living in Los Angeles lol

It costs 1400/month for mortgage on 2.5 acres where we pretty much have freedom, or we pay 1100 for 1/2 acre with quarterly checks and no freedom where we are paying someone else's mortgage with nothing to show for ourselves. Rent keeps going up each year too... I think it really just depends on the location as well as the person's intention.

@KatieBellino

10 ай бұрын

Exactly. The big thing is if your income can afford it. I know for me the couple of "small" added costs of home ownership are not enough to mess up my budget. The ability to have a paid-off home in the long run is more worth it. Some people think it will be completely cheaper though, which isn't true.

I love hearing your perspective on this Dave, me and my husband get judged so much for not buying a house rather renting, there is a lot of peer pressure, I get a lot “your throwing money away” but now we have both of our cars paid off, No debt at all we are now just saving like crazy to have a big down payment once we do get our house, we do not want to jump into something that we cant afford and later down be stressed, working like crazy just to be barely making it. The time will come when we can purchase a home 😊

Thanks Dave!

I find renting to sometimes be better. Owning means you own all the headaches mortgage, home repairs, lawn maintenance. I live in a very nice apartment yes it's expensive but hey I have a pool , workout room basketball court and repairs are not mine. I walk through a well maintained beautiful landscaping courtyard. Yeah I pay for it all and all the maintenance workers keeping it looking nice. I could not afford all of this owning a home. Just my opinion. Plus I invest in real estate in another way

@keywestalert6329

3 жыл бұрын

But you have a choice wether to try to make your home look nice in your own home. In the apartment you are in you have to pay these folks to cut the shrubs how they want. You have more freedom sir.

@tylerlamb9930

3 жыл бұрын

@@keywestalert6329 Not if you're dealing HOA. They can charge you money if you don't keep your lawn nice. And unless you have land between you and your neighbors or you live in a ghetto neighborhood, good luck finding a neighborhood without an HOA.

@JiisTube

3 жыл бұрын

Yeah it's nice

My rent per year is less than my coworkers property tax. Imagine all the costs it takes to just maintaining a home and see if that amount is more or less than you're paying for rent. My rent is so much less so I just decide to rent and invest the rest.

Needed this rant.

It's now 2021 and I'm in the Seattle area. Seems like people just love flocking here. Rent prices have skyrocketed that a 1 bedroom apartment is now $1700+. Homes that are tiny cost $300k minimum. The supply and demand is what keeps making our prices go up

I live in a college town and each year my rent goes up in my studio apt. Averaged rent in my area is $900+. Shoot if you own a home you can at least rent out a room to help make mortgage.

Here in south Florida you can mortgage A 3/2 1300sq ft for 1400 or rent a house that hasn’t been remodeled since the 90s for 2500 lol

@melaniegarrett-bailey3335

5 жыл бұрын

This is what I've noticed here as well

@singletracksender9021

5 жыл бұрын

South Florida rental market is atrocious. Half the ads are scams and the other half are overpriced undermanaged garbage. 1/1 is easily 1100 now before utilities and empty units literally get gobbled up before you can even get to the place to look at it. I’m so burnt out looking for apartments but I’ve noticed you can buy some oceanside condos for 85-115k... uncle Dave is crushing my dreams lol

@Nothingineternity

4 жыл бұрын

Central Florida is about the same

@chezshirecat1872

4 жыл бұрын

About the same in North Florida, the rent is stupid here, but got a good deal on my house

@snackpup

4 жыл бұрын

I wanna visit Florida! 🙋‍♂️

Add another 50% of your mortgage payment in monthly maintenance and upkeep.

My city is an exact paradigm of what Dave says here. Currently, rent is HALF the mortgage cost in my neighbourhood in the central city suburb where I live but 20 mins away it was the exact opposite a few years ago. Rent was indeed DOUBLE the mortgage cost. So.. we bought 3 rental houses out there. Now, 3 years later exactly what Dave said has happened. There was a scurrying about as landlords started to notice this area and competition developed between investors and first home buyers and now rents are now slightly less than mortgage cost.

My rent just went up...owning a house sounds pretty good right now.

@AStanton1966

5 жыл бұрын

But you have no property taxes, no maintenance expenses, and no insurance to pay for.

@chrisfarmer4397

5 жыл бұрын

@@AStanton1966 as a landlord I will say that is factored into the rent, a good practice is mortgage, taxes, insurance... for one year, divided by 12 and multiplied by 13 becomes the Minimum rental rate. The 13th month covers improvements and increases in expenses or months not rented out. I've done this for 7 years and can always rent it out at market value

@catherine6443

5 жыл бұрын

Property taxes also go up.

@rs2543

5 жыл бұрын

A Stanton1966 yes he does... it’s all built into the rent.

@Delimon007

5 жыл бұрын

@@chrisfarmer4397 Okay let's say that's true and then something that cost several grand happens to the house etc. All of this stuff has already been averaged out to 5% of the houses worth per year, on average to include property taxes. Yes you will be making money, but we don't have to worry about that stuff especially if something happens to the home. That's not on us at that point but on you and that loss is quite devastating.

Where does rent ever go down at. I’ve rented since the 90’s to the mid 2000’s and I’ve yet to see rent correct itself. You show me a landlord who will reduce the money coming into their pockets and I’ll show you a unicorn.

@alankoslowski9473

2 жыл бұрын

It depends on vacancy rates. If a landlord thinks you're unlikely to move they have more incentive to maintain or increase rent. But if there are several vacancies in your bldg they're unlikely to raise rent.

@bobbyb7672

2 жыл бұрын

💯💯💯

@user-kb3dz2bp4c

17 күн бұрын

When the landlord excepts section like my apartment complex. When I moved in they didn't have section 8 units 3 years later we had new owners and lots of single moms moving in. I found out that some of the section 8 units were as low as 25.00 a month.

Thank you sir.

With all the constraints on building in California, the supply seems like it may never correct the demand.