2024 The Year of the RETAIL APOCALYPSE kzread.info/dash/bejne/hoKh1taqiJy9g84.html

@user-wx5kj1ey1g

6 ай бұрын

yes, please do a course

@user-gx1bm3td2q

6 ай бұрын

Sounds better than my parents basement

@FreeAmericanUSA

6 ай бұрын

It's already happening.

@albertoalmeida3424

6 ай бұрын

I'm not going to buy a house in Florida, actually I don't even live in the US. I just like to watch these beautiful neighborhoods and dream living there some day.

@Defundthemasons

6 ай бұрын

But - What about Joe's Circumcision?

Keep in mind that during the 80’s people were encouraged to save due to the interest rates. Right now there’s very little incentive to save because those who are saving are watching those who are reckless taking it in. I’ve been trying to save for a home and it’s been discouraging to watch prices continue to not budge because there’s people willing to get into a mortgage where they’re paying 40% of their income. It’s insane.

@ThomasChai05

6 ай бұрын

I advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now because cash is definitely not king right now!

@mariaguerrero08

6 ай бұрын

You're correct! With the help of an investment coach, I was able to diversify my 250K portfolio across markets and produce slightly more than $730K in net profit from high dividend yield equities, ETFs, and bonds.

@mikegarvey17

6 ай бұрын

@@mariaguerrero08That's impressive! How can I reach this person?

@mariaguerrero08

6 ай бұрын

Credits to "Gertrude Margaret Quinto", she maintains an online presence. Just make a simple search for her name online.

@Susanhartman.

6 ай бұрын

I just googled her name and her website came up right away. It looks interesting so far. I'm going to book a call with her and let you know how it goes. Thanks

Mortgage rates are currently at an all time high since 2000(24 years) and based on statistics on inflation, we might see that number skyrocket further, a 30-year fixed rate was only 5% this time last year, so do I just keep waiting for a housing crash before buying or redirect my focus to the equity market

@BridgetMiller-

Ай бұрын

The stock market is no different, to maintain profit, you need to have some in-depth knowledge on the market

@Michaelparker12

Ай бұрын

True, I mostly just buy and hold stocks, but my portfolio has been mostly in the red for quite awhile now. Unfortunately to be able to make good gains, you’ll need to be consistent and restructure your portfolio frequently.

@nicolasbenson009

Ай бұрын

in my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.

@berniceburgos-

Ай бұрын

my partner’s been considering going the same route, could you share more info please on the advisor that guides you.

@nicolasbenson009

Ай бұрын

My CFA ’Melissa Terri Swayne’ , a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.

The mistake wasn’t figuring out rental/mortgage payment ratios. The problem was that people paid waaaaaaay too much for housing.

@MumDulay

6 ай бұрын

That part!👏

@jimbopeebles8210

6 ай бұрын

This the one ☝️

@marknewton6984

4 ай бұрын

Equity?

@sasquatchrosefarts

3 ай бұрын

​@@marknewton6984property appreciates and buildings depreciate. Land is a good investment and houses aren't.

My dad hated going to work every day of his life, but he called his job the "golden handcuffs". It was too late to switch jobs because he had a family to support and a pension he would need later on.

@the_derpler

6 ай бұрын

What is a pension? I've never heard of that.

@bamahama707

6 ай бұрын

So, what did he do?

@gregabrams5792

6 ай бұрын

I feel so sad for people like your dad. He is a good man, but doing a job you hate is a cruel form of torture

@noahkyurem

6 ай бұрын

​@@the_derplerit's a mutual fund thing that everyone in your company contributes too while working, and then when u retire u get fixed income so u don't have to work

@joycef8443

6 ай бұрын

Your example is the usual one for “golden handcuffs”. I have never heard that term applied to mortgages…

I sold my va 2.25 rate assumed. Didn’t want to live there anymore. Home went up about 250k in two years. Sold it bought a home cash where we wanted to be half the size, new, way better neighborhood. I’m 60 but felt trapped with the 2.25. I wasn’t gonna let my rate own me. I don’t live to be entrapped in a rate. I took the gift of ridiculous price increases and didn’t get greedy. Now I’m mortgage free, live down the street from my family and much happier.

@TheEblenRealestateTeam

6 ай бұрын

Smart!

@jizzyjake6783

6 ай бұрын

Yeah that makes sense you got the best rate of all it's not like you were assuming a 7% mortgage after selling. They usually just call that downsizing and a lot people would jump on something like that if it worked out for them.

@elmocotaco995

6 ай бұрын

@@jizzyjake6783 yeah it was still tough we really wanted a house the same size but after seeing people at our workplaces getting canned, called back into work and just the craziness and uncertainty out there figured who needs the stress and we will live to fight another day on our terms. Options and control of your life make you rich not how much you make. Took a while to figure that out.

@Matt90541

4 ай бұрын

I'm in a similar situation but I bought 17 years ago and my home has only appreciated by about 10k in 17 years. You're lucky you earned 250k by doing nothing - I'm not sure if "trapped" is the correct word. A year after I bought my home in 2007 it's value collapsed by 50%

@johnswanson3741

Ай бұрын

​@Matt90541 Who in their right mind would have ever bought a house in 2007?

We have a 2.25% 30 yr mortgage and plan on staying in home for at least next 15 years. We are retired and loving life.

$5,500 a month is BEYOND outrageous. It's like the boiling frog syndrome: people don't know that their lives are out of control until it's too late. It boggles the mind how expensive real estate is now. Housing is not worth what people are paying for it. It's going to crash. Soon. No one can sustain these insane prices.

@bigbob3772

6 ай бұрын

Best position is to own a house outright in a low property tax area.

@douglaskoski7098

6 ай бұрын

Not sure if it's possible, but might be good for purchase agreements to include aftershock clauses. Allow people back out when taxes and/or insurance add far more than expected to the monthly cost of the house. Seems like Floridians could benefit where insurance rates are going crazy.

@brianmatthews4149

6 ай бұрын

​@bigbob3772 that's why I stayed put 1700 a year for taxs in CA is affordable

@robertc6831

6 ай бұрын

The "Boiling Frog Syndrome" was a perfect way to phrase that. 👍

@mg-by7uu

6 ай бұрын

If it does they'll just print another 10 trillion to hand out to themselves to buy up all the good deals again

People need boltcutters. They need a plan that is much bigger than "how to buy a house" and afford it for a while. Inflation, taxes and insurance are what is going up and up, not RE itself. And commercial RE? A disaster. Auto loan delinquencies? Disaster. We are headed for a crack up.

The last condo I had in Florida even though I loved the place, the deciding factor in what prompted me to sell was when I saw the housing market slow down last time I went on the county property appraiser and tax collectors website and I looked up every unit in my building to see their purchase price. Sadly it turned out that I I paid the highest price than any other unit in the entire building. by approximately $60,000. Knowing that any of my neighbors could undercut me at any moment I decided to sell. You learn through experience. I wish I had known to look at the county website before I purchased. That unit got foreclosed on a year after I sold it and sat empty for 5 years.

First time buyers should watch this to avoid expensive mistakes

@MichaelBordenaro

6 ай бұрын

Agreed

@johngibson2884

6 ай бұрын

It should be part of your future Home Educational package ; part of a series you create. You relay the info clearly and skip the schwag...TY

The one thing that leaped out at me when I was working as a long haul driver was; I have no favorite place to live. Strange but true. I can't even imagine being locked into a long term ANYTHING at $5.5k/mo. That sounds like death to me.

@thephilosophicalpugilist

6 ай бұрын

Mortgage=death note. Mort means death in French.

@socialisttrafficregulator2015

6 ай бұрын

@@thephilosophicalpugilist I'm aware of that, thanks again for your input for those who aren't. It just doesn't sound like a proper use of money if you can literally dump that much cash each month.

@thephilosophicalpugilist

6 ай бұрын

@@socialisttrafficregulator2015 I agree! $60,000 a year for a house! I'd rather save the money and by a mobile home for $60,000!

@gsssbsbjdkfdmjd

6 ай бұрын

Yes that is what it is and with predication and with the government not paying attention it will get worst, so that why one do need a backup plan to save him/herself

@gahshdsjdndnjd

6 ай бұрын

@@gsssbsbjdkfdmjd That's very true of you, but what backup plan could be considered and what gives you the courage to say that the situation won't be worse in the future?

Paid cash for my house 26 years ago. Apparently I am content with what I have and where I live. Thank God I'm not dealing with having to put a roof over my head, renting/buying, in this screwed up economy.

@QzAMYQz

5 ай бұрын

🙏🙏🙏

@gteixeira

5 ай бұрын

I regret so much going to the kindergarten instead of buying houses 😭

@carllachance3512

Ай бұрын

with inflation your property value will go up and so will your property taxes, insurance, and cost of repairs.

My rental property had a 3% mortgage. I was able to make a small profit on it for two years. Then the insurance doubled and I wasn't confident I could keep the rent competitive and break even let alone make a profit. So I sold it while I knew there was still some value.

@hvaball150

6 ай бұрын

You will always be competing as a small guppy in a large lake. People who are happy with 3% returns or less, etc. Or they can even lose money for a year. If there are enough renters, fine.

@commanderrussels2612

6 ай бұрын

Insurance is going to be what breaks the Florida market.

@qbanb8582

6 ай бұрын

@@commanderrussels2612 I agree 100%.

@rumpointcondo3339

6 ай бұрын

Florida home prices are beyond crazy. We wanted to move a year ago to Sarasota area from Boston area. I went there to look around at real estate for 3 days. The traffic and the prices shocked me, also all the extra HOA fees (100-800$a month) crazy property tax and amount of older homes in need of fixing. Decided not to move - Boston area houses are cheaper - Surprise! Have to suffer here for several more years.

@hvaball150

6 ай бұрын

@@rumpointcondo3339 on the flip side, my house in St Pete would sell for about $750k. No HOA. On the water. I'm sure you could afford that coming from Boston ... 65 degrees right now... Not a hint of ❄️.

I got a 2.25% rate back in 2021. Gave it up because we needed to move AND HOA started to not allow renters. Hard pill to swallow!

@MichaelBordenaro

6 ай бұрын

Wow, thanks for sharing that!

@MR..181

6 ай бұрын

"We" got rid of non resident board member attempting to "rule" and rent , not the ability to rent..perhaps the information you get "from" "association" is from saboteurs and looters or outside "help"...

@gregorylyon1004

6 ай бұрын

HOA community. Big mistake

@InternetUser._

6 ай бұрын

Never HOA. It Gets filtered out instantly.

@walled_gardener

6 ай бұрын

@@gregorylyon1004 I agree. A mistake I will NEVER make again.

You should do a top 10 list of what buyers miss in there due diligence, for example, inspections, dot plans if any, hoa rules, irrigation water rates, family watchdog, crime maps, loan prepayment penalty, new property tax rate, neighbors yard encroachment, sewer line rotted or full of roots, pool leak, etc etc

@nickc3856

6 ай бұрын

great idea

@littledebby365

6 ай бұрын

Due diligence cannot be stressed enough. I dig with fervor when I do my due diligence. My favorites so far: Tucson AZ is full of wood termites. Grand Junction CO has uranium in driveways and sidewalks. Pueblo CO has more criminals that workers because crime pays better. Mobile AL has a 10% tax on food! Due diligence ought to be a college course.

@SigFigNewton

6 ай бұрын

One surprisingly common one is simply not making a full comparison of owning costs to renting costs. Their buddy who’s a used house salesman was always going on and on about how renting is throwing money away, so they bought and then realized that mortgage interest is throwing money away, property tax is throwing money away, home insurance is throwing money away, HOA fees are throwing money away, and property upkeep is throwing money away. If you buy because rent money is money out the door that doesn’t increase your net worth, then do a proper comparison to all the money out he door that doesn’t increase your net worth if you are an owner. Additionally, in terms of appreciation, take into account the fact that there’s a high likelihood that your would-be-down-payment-money could make more money in other investment classes than it’s likely to right now in real estate.

@kargs5krun

6 ай бұрын

​@@littledebby365 You should have a channel/do videos also. Cover Florida first and foremost.....it's the hottest mkt.....for years now.

@littledebby365

6 ай бұрын

@@kargs5krun my takeaway from Florida may not constituent true due diligence for home buying but for me it did; if there is a body of fresh water, from Florida to Texas, do not let your dog go in it, as per USACE employees.

Just sold our house today. We had 2.4%, and I don't regret it at all. What we saved in interest rates, we were dumping out the window in property tax increase. Gonna rent for a while and hope for a crash, or maybe just build a house with my bare hands. Something has got to give with this insanity.

@user-id9on6pp1g

6 ай бұрын

Smart, I see a housing crash as inevitable.

@midsummernightsdream60

6 ай бұрын

but won't you pay property taxes on the home you build with your bare hands too?

@JamesG1126

6 ай бұрын

We could easily have a flat housing market for years as rates come down due to soft landing and support the housing market. Your sell/rent gamble might blow up in your face.

@jaysaporiti

6 ай бұрын

Something is gonna give… but most people aren’t prepared for it and a lot of people aren’t gonna make it

@jamesharper8373

6 ай бұрын

@@midsummernightsdream60 different location, very different taxes

Thanks Michael for giving people a realistic view of being a landlord. It indeed can be a nightmare. My father owned some properties when I was younger and I saw firsthand the challenges and never wanted to pursue that task.

Gave up a 2021 rate of 2.6. Developer lied about hundreds of section 8 apartments to be built next door. HOA rates went up 10% every year while we were there. Crime was absolutely abysmal. Assessed tax value went up $100k in only 2 years. It was a bad scenario. Obviously have a much higher rate now and things are tighter but we are in a much safer/better location and we are not in an HOA or in city limits.

Refinanced 11 1/2 years ago got 3.25, just paid off mortgage in November 2023, loving life.❤

Great analysis and advice Michael, We escaped the real estate insanity of Florida and moved to the Philippines in 2022. We are raising our two young children here and our quality of life and happiness far exceeds what we experienced anywhere we ever lived in the usa, I am 70 years old... I applied for Philippine Permanent Residency here and in six months my residency will be complete, we really thought outside the box on this one! God Bless all who are suffering and stressed out in the states...John

@gregorylyon1004

6 ай бұрын

You say that you are raising your 2 young children in the Philippines???? And you are 70 YEARS OLD???? How young is your wife ????? Lol

@m.t.3109

6 ай бұрын

Why not Guam?

@mylesgray3470

6 ай бұрын

I plan to retire there in 15 years, health permitting. My wife was born there and has family there. I’ve visited about 6 times. It’s a lovely place!

@chucke756

6 ай бұрын

@@gregorylyon1004😂😂 dirty dog

@EvelinHolmes

6 ай бұрын

@@gregorylyon1004he has his own channel . Nice guy. I do watch him almost every Sunday. I do belief in the Philippines you can live down to earth with less baggage . His apartment is small compare to American standard, but he did make it his own which would be unthinkable in The USA or Canada .

My dad used to say "Champagne taste on a beer budget". So buy some beer and pretend it's champagne.

@georgeallen7667

6 ай бұрын

Or....drink the champagne of beers. Miller High Life

@CarolMeeks

4 ай бұрын

Yas ! Dad's know best

@marknewton6984

4 ай бұрын

Dad had good taste!

Oh my GOSH Michael 😮. Another thousand subscribers. I’m very excited for you. You have got to be the fastest growing channel regarding Real Estate. You’re DEFINITELY CRUSHING IT 😊😊😊😊😊😊😊 Blessings,Carlos ✝️🙏❤️😊🇺🇸

After the crash of 1987, every house I rented for the next 14 years was less than the owners’ mortgage payments. All of them took a “loss” until they sold the property.

@ComicLover-oj5sv

6 ай бұрын

Not trying to troll, just curious how you came to this conclusion... In 14 years, you effectively paid off half of their mortgage balance. Plus, they reaped the tax benefits which probably netted them another 30%. Then the appreciation, which was on average 70% nationally from 1987-2001. So, how did they lose?

@Defundthemasons

6 ай бұрын

@@ComicLover-oj5sv "All of them took a "loss" until they sold the property!" That's how they lost!

@HarrisonCountyStudio

6 ай бұрын

@@ComicLover-oj5svobviously, many areas of the country did not see property values rise as quickly as a few areas… and this persisted for most of the 1980’s…

@topguncarguy894

6 ай бұрын

​@@ComicLover-oj5svpublic records stooge. You can see everything about the house you're renting. Follow along! Lol

@deborahcurtis1385

6 ай бұрын

@@Defundthemasons You're not being clear. What you are saying is that it was just a paper loss that was not realised because they didn't sell. Rather, they held on and waited for the market to improve and then sold well into profit. So the only 'loss' was that they picked up the tab on the difference between the rental income and the mortgage. This is not unheard of.

8 out of 10 contacts bought 2-3 homes in naples dec '22. all renovated and listed for 700-800k (size: 1000-1200 sf). they tried renting between 9k-10k, no one renting and no buyers. these homes started listing sept-oct '23. at the moment, total homes they have on naples market is 112. 112 homes!

I don't know how anyone can think these home prices are acceptable. Prices in the Sunbelt are due for a correction with most of the non-local buyers pretty much done. Its the locLs now and they can't afford these ridiculous prices.

@ellyne3863

6 ай бұрын

I feel the same way. There are OLD ugly homes in my area going for 600k and up that will need a LOT of work in the coming years. These homes are worth around 300k. It's absolutely ridiculous, and the people buying these pieces of junk at top dollar are going to really, really regret it.

Not all of us just have a house, we have homes acreage, farms, animals all of that and when those big properties were bought at 2.3 like mine we are not stuck due to income reasons we are stuck because others don't qualify to buy

If you’re not first. You’re last ricky bobby.

@Outroyal

6 ай бұрын

In first and last😊

@BREEZYM6015

6 ай бұрын

Ricky Bobby? What does that mean?

@specialk2514

6 ай бұрын

​@@BREEZYM6015Ricky Bobby is the character in the movie Talladega Nghts.

@user-qh5wr1br3d

6 ай бұрын

Shake and Bake😊

@kessku1484

6 ай бұрын

Baby Jesus😅

It is about EQ to stay delay granitation. People who rush buying an overpriced houses has been influenced by realters and coporate media.

When it came to making the largest purchase in my entire life, I wanted to know everything and anything in the ins and outs before I even considered purchasing my house. I just assumed that everyone was like that I didn't realize so many people took it so nonchalantly. The fact that this will be the second time this has happened in the last like 12 years it wouldn't hurt to come up with a course.

@zuzanazuscinova5209

6 ай бұрын

People are desperate. By the time you figure out all the ins and outs the place is gone.

Waited to get my first house when I could straight buy it out- also gave me time to see if I wanted to stay in the area and where in the area I liked. After that I was free to do what I wanted with my money as far a future properties (was in a stable place I liked, and no questions about my house). I see a huge renting boom since these house prices are out of control and rates not pleasant either. I see many people taking losses- already see it Austin and Houston.

@herlegz6969

6 ай бұрын

texistan insurance greedflation exploitation is insanely out of control, just as bad as the property tax. The moving goal posts of the financial enslavers ensures everyone trapped in the US eventually gets pulled under.

@SigFigNewton

6 ай бұрын

@@herlegz6969they are all out to get you

As a result of Divorce, in Aug 23 - I gave up a 30yr fixed 2.875% mortgage in Georgia. I was on my way to Florida - but changed my mind based on the education of videos like Michael. I am cash rich and house poor....and enjoying the fuck out of it!

HA, yes "the golden handcuffs" is actually a phrase that refers to a state of entrapment due to a good benefit that holds someone from change - a "golden" benefit like your interest rate scenario. My aunt was a teacher and after many years said I have to keep going because of the golden handcuffs - the pension after 30 years. She made it! Without the benefit, she probably would've resigned sooner.

@mph5896

6 ай бұрын

Police and fire department jobs around here, guys are bailing after 5-10 years when there is no pension plan involved. They move on to a different department that still offers or get into a different line of work.

Yes, a book, course, or video would be great. You are the most honest real estate person on KZread!

We have golden handcuffs right now. My mortgage is so cheap compared to others around me. Good thing we are not looking to move anytime soon. My wife and I both work less than a mile up the road from our house. We’re here for the foreseeable future. But one never knows… Have a great night everyone 🍻

@Jack-pd4ps

6 ай бұрын

Great move and don’t let it go. Enjoy the low mortgage and freedom. Lots People who waited for a crash thinking they were going to get a foreclosure are stuck renting and are depressed about it. I know someone who did exactly that and gave up on homeownership.

I live in Seattle area and the rent vs home values equation is way out of whack here. Unless you put 50% or more down, you are likely going to have a house that costs more than it can rent. It’s been like this for at least 8 years and it’s getting worse.

@DummMoney-rr1fi

6 ай бұрын

still cash flowing in my city in British Columbia even tho prices doubled in past 10 years

@mylesgray3470

6 ай бұрын

@@DummMoney-rr1fi That’s really lucky. I noticed here in the Seattle metro, the more expensive cities are the worst, such as Bellevue where you would need to spend about $2 million for a decent house and it’s only worth $4-5k a month rent. A $700k house further north can rent for around $3k. Really odd dynamic.

I think what's crazy is that people don't understand that interest rates really don't matter because you have to factor in the cost of everything. The government can increase or lower the interest rates but that does not change the price of homes or the cost of food or anything else that you have to buy with a currency that is going down more and more in the buying power basically we're going to be like Zimbabwe eventually. Cash is getting hard to come by nowadays and everything is getting digital which means that the government can control and watch what you do and that impacts how they can dictate the prices of everything which then makes you a debt slave because you have to take out more and more debt to acquire these goods. For example just like a mortgage for buying a home you are not buying a home you were buying the debt to acquire that home and basically it is a very expensive rent-to-own program which for 30 years you're paying into and the government can screw you over by impacting everything else around you and let's say that you pay off the home early it doesn't matter because our money literally does not have any value in it, it's not backed by gold and people accept that because that's how the government controls you is by lending you money that they will always be able to adjust to make your behavior what they want. So enclosing your own nothing and be happy because the currency will never be enough to survive but you'll have just enough to make it through the end of the month. Stop playing in today's game get out of the housing market buy some land and do it like your forefathers did that's the only way that you're going to get your freedom is by being the master of your life everyday and you are rich because you have nothing that dictates or control you.

I think owning a laundromat or self storage facility would be a good investment. Having done neither, I'm just throwing that out there.

@stevenevangelist5221

6 ай бұрын

Little mailbox center. No storage building rats, no repairing, switching out machines, etc.

@lawrencearnemann3923

Ай бұрын

We own a carwash in npr. We do ok

A Video from Michael is the perfect way to start the weekend!😊

@MichaelBordenaro

6 ай бұрын

Right on!!

You should definitely put on a real estate for beginners video. As an older guy, im always amazed how many folks cannot calculate their total income vs total expenses and what percentages should go to what and often more importantly what is the value of certain purchases. Love your common sense content!

My co worker had the same discussion with his wife. She was mentioning how much their homes value grew and that they could sell it and make a huge profit. He then says "oh yeah? Where are we gonna go? Everything is overpriced, and we'll just end up paying more anyway."

@AmazianLinsation82

6 ай бұрын

Women…they don’t see the big picture

@zuzanazuscinova5209

6 ай бұрын

Leave the country, obviously. There's nowhere to go here.

@brianmatthews4149

6 ай бұрын

Move to Mississippi you can still buy a place for 65.000

@trompell0

Ай бұрын

Are you ready for ragnarok? Your house will be tinder and your money toilet paper

If you’re moving with your job transfer and you own multiple pets, you NEED to buy a house. No one will rent to you if you have 3 dogs and 4 cats.

@justinallport9789

6 ай бұрын

What if you offer them a very Steep Security Deposit?

@francesguinta8614

6 ай бұрын

@@justinallport9789 well, it’s history now. I’m in a house but in this city’s cranky housing market I can’t even imagine a landlord accepting my animal menagerie that included 2 pitbulls. Liability disaster!

@AJSHOPE

6 ай бұрын

Make sure you check city ordinances. The current city I'm in only allows 5 total (cat/dog) pets.

And nobody never thinks about the dirty money laundering happening for years on those properties. They don’t care if those stays empty and if they overpaid : money has been washed.

Owning a house is a illusion now as property taxes eats away your life.

@fozzir

5 ай бұрын

Wow! What are you talking about? If you don't ever buy a house when you retire you will have to pay rent to someone and that is an expense that will cut into your retirement! I'm 10 years away from paying off my mortgage and 10 years away from retirement. All the while I've deducted the interest off my taxes. Do the math!

@hampopper3150

5 ай бұрын

@@fozzir I'm not going to retire and I didn't do your math obviously.

@fozzir

5 ай бұрын

@@hampopper3150 Well then I'm proud of you!

FOMO is a childhood disease that most people have to go through at least once.

@SigFigNewton

6 ай бұрын

Line always go up People are now going to have to stop using the “rent prices never fall” argument. in many cities, at least. I guess in some places rent isn’t down

How about some very thoroughly detailed checklists---one for a stand-alone house and one for a condo. Start with the pre-approval process and end with the closing. Include everything in the lists that buyers should consider and do (and NOT do) during the entire process. I think that would be very helpful.

I think the sad thing is that this doesn't really apply to housing anymore it's also applies to everything that you want to get from auto loans to bank loans to anything that's tied to a contract that is impacted by the government raising or lowering hikes on the interest. I know that corporations have a say on what they will put down on interest on the monthly payments but this is just too much literally the prices of everything is going up. Even if interest on payments does come down, people do not understand that it doesn't matter what kind of interest you have. If you're literally buying a house for over half a million dollars even at a 2% interest that's still a lot of money to put down every month on something that you are literally renting to own. The only good thing about a mortgage is that this contract allows you to sell the home and recap the money back if you're able to make a profit. But if not right now, you're taking a loss so either way you're just pushing your debt around in a market that's already falling down. This in return makes everyone's homes go down in value which tanks the market and then eventually with all that weight it will come crashing down. The seller then realize that the debt to profit ratio is too big. And with the way that everything is going on I would be surprised if that lump sum of money is only able be survived on with a very restrictive and conservative and minimalist life style you'll eventually own nothing and be happy.

Miami Lakes went to see 3 houses for rent. I offered $700 less than rental price. I was denied right away. One week later bingo a homeowner gave in. Start offering less. $4500 for $3800.

Never get emotional about a piece of real estate. You will probably make a bad decision buy usually pay too much. Always be able to say no and walk.

We got a 2 year 2.09% mortgage in Canada which comes due in March 2024 at which time we will pay it off and be mortgage free during retirement. It will just let me sleep at night knowing that interest rates can go back to 20% (like in the 1980s) and I will not loose the house.

@EvelinHolmes

6 ай бұрын

Congrats, a wise thing to do. I know Americans are not in favour of paying of there house because the can deduct the interest on there income tax. We live in Calgary and paid our house of with in 10 years . Living an excellent life without loosing any sleep . Happy retirement. A good place to be.

@jonathanjacques7250

6 ай бұрын

Yes, best and only smart way to retire. Debt free!

@brianmatthews4149

6 ай бұрын

I never understood those short loans Canada has.10 years or 30 down the road you might not be able to afford your house and what if you don't qualify anymore do they kick you out on the street.

You either have to give up the golden hand cuffs or you are up so much that you just wanna cash out and do something else, for example travel, rent, or just move in with someone. Giving up your low rate doesn’t exactly have to be because they have to.

Yes, Mike! Me and my mom (still don’t know if this year or next) want to buy a home, so I think a course on purchasing real estate would be great to clear up some things.

It's hard for me to wrap my head around that $13 mill property listing. They were asking $65k/mo rent, then dropped it to $50k. Wow, what a bargain! smh. That's more than I paid for my first house. And a $240k annual property tax bill. omg. What were people thinking?

I speak from personal experience from the time I was in my 20s to my 40s, interest rates didn't matter to me. Getting the loan did. I'd pay anything to get a car. All I saw was the bottom line. When I started buying properties, I got them at such a low price. When I sold, I made money. And here's the most important thing. When I took a loan out, it was always short-term with a complete payoff from another property sold. I used banks to my advantage. I've never had a mortgage for more than a year. I own 4 now and am completely debt free.

Michael. Thanks for the videos. I watch them all. I enjoy hearing your observations on the housing market. For a long time I wanted to move from cold Indiana to Florida. Because I never pulled the trigger when I was younger when prices were a lot less I missed out and now just enjoy visiting about 3 times a year. I think a course on housing would be great. I would probably take that course just to improve my knowledge. I don't expect that I will be moving from my Indiana lake home at 70 years old but as you say life sometimes changes. Take care and thank you!

@mannettegaray2589

6 ай бұрын

Do not move to Florida. The summer weather is hell, and the humidity will create a lot of rheumatoid conditions. I am moving out fir many reasons, and one is the health, and politics.

Nothing is more stressful than having to move and you cannot sell your place. When the rent does not cover the payments it takes integrity and realizing your error to hang in there until the situation turns around. My Husband and I had that situation when my Husband was in the military. He was transferred, and no matter what we tried to do, we could not sell our place. It took us NINE years to dig ourselves out of that situation. In fact we still have the property. It’s nice that the place is paid off, and we have been turning a profit, but it was bleak to slog it out.

Great advice. I do find it very challenging to properly estimate the expected taxes.

It was as astounding how much money people were casually throwing around outbidding others. I had friends who casually through an extra $15k on their offer because their agent advised it. Sure, $335k Vs $350k is not a huge difference over a 30 year period, but thats still $15k…

@kitsiewr

5 ай бұрын

Plus 30 years interest on $15k

A good property manager can absorb a lot of those headaches.

The only thing I wished I had was a larger lot. But I did okay with rate 2.49%

Michael, you should have a course and charge for it. You may as well get paid for the information you are giving away freely. You have the charisma to be a great teacher!!

You are right Michael , they really 😮thought just because they have lower mortgages that they will make a profit on renting. Unfortunately New York is the only place that someone can profit from renting. Florida is also a disaster when comes to make a profit.

I recently got a quote for my homeowners ins from my current company, State Farm (condo in MO) if I decided to rent it out. It’s cheaper than if I live here. Yea, I thought that was weird, but it’s true.

@hvaball150

6 ай бұрын

Yeah, but losing my tax break would cost me $10k per year ....

@JNoMooreNumbers

6 ай бұрын

I think if you're buying another then you may be getting a multi discount like vehicles. Only reason I keep a non running Jeep. Insured for storage for 80 a year but makes my auto insurance altogether cheaper. I could add a nonworking motorcycle and probably save more.😂

Houses really work well over the long haul. Think 10 years increments. I took the view that the rental just needed to break even. I did not need the income. Then over 15 years the renter pays off your mortgage. So, it turns into income when you need it in retirement. Also works well as an inflation hedge. Patience required.

@JS-ny9ge

6 ай бұрын

So over about 24 years I ended up with two great rental properties that the renters essentially bought for me. I would definitely not buy a house now.

@SigFigNewton

6 ай бұрын

And now that many rentals are cash flow negative in some cities, investor buyer demand is way down there.

@JS-ny9ge

6 ай бұрын

@@SigFigNewtongetting closer to being a great time to buy. Buy when no one wants one and it’s seen as a terrible investment.

@SigFigNewton

6 ай бұрын

@@JS-ny9ge we’re nowhere near it being seen as a terrible investment. Closer to peak FOMO than to that still

@marthabradas8873

6 ай бұрын

yes! Agree!

These MLS details are like watching two Trains collide - makes you wanna cover your eyes and your ears up, but you know you better "Turn and run "!

If you rent and dont stuff cash like you owned, you will fall behind. Those that buy are often forced to be that saver, built in as equity. Not realizing or changing your lifestyle is the culprit, if you rent.

@leetjohnson

6 ай бұрын

💯

Yes, a home buying course would be extremely valuable.

Glad you touched on the amount of houses for sale. I was shocked about the amount of inventory now; at least in Florida

Hello Michael: As a loyal subscriber I love your videos + your no BS approach to real estate. At the end of this video you had mentioned a real estate purchasing corse for nonprofessionals. I think it's a great idea for serious non-professional buyers. Thank you in advance TMP from N.J.

2.25% here. Problem is the apparently open ended insurance bill. It may eventually force me into one of my fixer rentals which is worth much less.

I bought my home in 2016 for $602k. The had a 3% interest rate. I sold 5 months ago for $1.3M with multiple offers. I am sitting in a rental house for $4K a month. I plan to repurchase a substantially similar house to what I sold for $700K in a year or two for cash. Giving up the 3% interest rate wasn’t difficult to do when my plan is to pay cash for the next house…. And if interest rates were to go to 20% it only means my next house will be cheaper as most people buy on payment vs. price.

@zuzanazuscinova5209

6 ай бұрын

Damn.

Thank you to our host for taking us along on tour for these daily segments. Always learn something

Good idea. Book idea works, just keep the information as clear and simple as you are doing as speak to us in this video, richard

Seattle is very expensive. Not enough pain has been felt. Homes have become so overpriced, they rather keep homes empty thinking they will always sell it at a win. Price cuts are mostly only occurring to multi million dollars homes

Lawn home for sale signs are popping up in my area like weeds in a garden recently. Soon to be covered by snow.

I think you should have a course. Your very intelligent on these issues. Even though I'm not currently looking to buy property, I'd pay for the knowledge. Keep expanding is what I say. However I can't imagine the work going into such a complicated subject. With that said people have to love what they do and it seems to me that you do. March forward my friend.

wow! I couldn't imagine such an inversion, that you would lose money. good advice! thanks.

At current interest rates, I'd have to pay 1.5-2X more to buy the same house as I pay to rent it now. That just doesn't make sense. I'll wait until those two price tags get closer together.

I'm 18 minutes into this video and you just were talking about a 13,500,000 dollar house for rent for 50,000 / month. I remember back in 2008 we lived in a waterfront community and a lot of the houses were being purchased by a certain ethnic group (foreign) with questionable access to money. It was almost laughable but of course the realtors had no problem with what was going on. I wonder if this isn't what is going on when you show listings such as this.

@SideMischief

6 ай бұрын

What ethnic group?

@SigFigNewton

6 ай бұрын

Yeah, tell us where to direct our bigotry

@lgull1

6 ай бұрын

middle east or the cartels . Or East Asia countries. China? @@SideMischief

@commanderrussels2612

6 ай бұрын

There is for sure some money parking going on. Not all of it is illegal, some of it is just people who live in sketchy South American countries that want to own American assets to protect their wealth.

@gteixeira

5 ай бұрын

The Asians are becoming the new Jews.

Low mortgage rates allow for high home prices and high mortgage rates require lower home prices - generally speaking over time.

Yes, $3,500 a month is high, plus maintenance fees, taxes, etc. Bought an over valued home

My friend gave up his 2.5% in favor for a new state, in a way better neighborhood, in a way newer home. Even at 5.5% they pay less and are finally in a safe city. It wasnt that he was struggling with finances, it was the all the bad kids terrorizing the neighborhood while their dead beat parents did nothing about it. On top of that the violence and crime got out of control with all the Californian's moving into town. He made a good choice amd im glad it wasnt because of finance, just personal saftey. So not everyome giving up the low rates is because of financial problems.

I agree it's good to avoid an excessive mortgage as a general principle. But many do by falsely assuming that if they buy in a mid to higher end of town their value will not decline. In fact such properties can show the highest volatility. Rather, it's important to take into account the possible downsides like being able to lease out your property. OK. Easy to say. Because the uncertainties involved are daunting when tying to plan years into the future. With the best will in the world you can still make the wrong decision. Economists cannot even agree on what's happening in the next few months let alone years. This thinking encourages self-blame when in fact the ordinary punter is disadvantaged pretty continuously. For instance if the bottom falls out of the employment market then the ability to pay rent on higher-end properties reduces. Because it's discretionary so people start renting the lower end properties because they're trying to save to pay down debt and prepare in case of their own redundancy. If everyone is fearful at the same time then all your figures from when you first took out the mortgage become quite upset, even with the best planning. Because the reality is that what triggers the market is not widely understood and then when it happens is also not well known. If the Seattle guy delays he could be in for even greater losses. It's a wonder he doesn't just sell out now instead of waiting for the market to really start to collapse. Paralysis by analysis. Not good.

I like watching your videos because you help people make good choices and help people not to listen to the greedy people trying to make people buy homes they wouldn't have if they would have investigated everything further

someone bought our condo in chicago in April 2022. I hope they're OK. I owe everything to Indiana

They could do a Wrap around TD. I've never heard of a bank going after a Do on Sale. For a family member. As long as the pmts are being made. In the old days, it was a common thing. "A Wrap"

Most of the people with the low mortgage rates are happy about their situation. Most of these videos don’t talk about the success stories and have encouraged people to wait and not buy. 2020-2022 was the last chance to buy at an affordable rate. I know someone who had the down payment and the income to buy in 2020. They decided to wait for a crash. Now they’re priced out. They have gave up on the idea of buying.

@AJSHOPE

6 ай бұрын

That's on them that they gave up. Unemployment is about to skyrocket, not to mention that Baby Boomers are starting to pass. Once the Boomers start passing more, there will be a glut of inventory, even without a rise in unemployment.

@midsummernightsdream60

6 ай бұрын

yeah how about a video of all the people that have regrets of NOT buying in 2020-2022?

@tobyk5149

6 ай бұрын

absurd

@Jack-pd4ps

6 ай бұрын

@@midsummernightsdream60 yup.

I am a tax and financial planner. The issue has many complicated issues. Tax planning, risk management, estate planning are just a few. Heat a good CPA and real estate attorney to go over your options before you just rent it out.

The reason Seattle guy wants to leave is that Seattle is an even bigger cesspit than Portland. Just talked to old friend from there who was in Portland to attend an appointment at the va, spent the night in the city, actually had to dodge human excrement on the sidewalk. ( I defected to Australia about 14 years ago)

@QzAMYQz

5 ай бұрын

Australia!!!!! 😂😂😂 Good luck

NO! If you start a course it will corrupt you. Stay true to yourself and what you are doing.

Thanks for the excellent advice & prospective! You need a show and PODcast

GREAT video. These videos always contain insight you can use.

It is even worse for condos because of all the ancillary costs, which in many cases those combined costs actually EXCEED the mortgage payment. So in the end after all those mortgage payments, what did you buy? The people MB referenced from Seattle have to feed the property indefinitely and eventually they'll decide the hassles of landlording are just not worth it.

@speteydog2260

6 ай бұрын

I’ve never seen hoa fees this high. 400$ up to 800$ 1000$ Hoas. This was unheard of when I owned my condo.

@SigFigNewton

6 ай бұрын

HOA fees are why I will likely buy used rather than new-with-HOA. To be fair to condo owners, tho, they do indirectly benefit from land price appreciation. People will pay more for a condo as the alternatives become more expensive. (Some people claim it’s ridiculous to buy real estate that doesn’t really make you a land owner)

At a $400k income a year the house is more a tax shelter than a source of income. Just in federal taxes thay are saving atleast $8k a year not accounting for all of the deductions that rental property offers.

@fearlesswarrior4651

5 ай бұрын

Can you explain in detail exactly how this works, along with a couple of examples with real numbers?

Yes! Do a course. You are great and very informative.

I’m always amazed how different the US housing market is compared to Australia. We intentionally rent out houses at less than the mortgage because we get tax breaks. So interesting to see you have lifetime mortgage rates where we have variable or fixed term (max 5 years). Mortgages with lifetime rates is not a thing here. Thanks for sharing.

Don’t forget opportunity cost. They can liquidate and put the proceeds into TBills or TBonds for 4-5%+ with no risk, and no gaps (like in renting).

@Thisishard2333

6 ай бұрын

Exactly. Sold my house for 700k. Instead of buying my new home outright, I put 100,000 down at 3 1/2% and the rest went into treasury bills. I know it might not last forever, but I was able to retire at 60 instead of 62. The interest pays every expense. Right down to dog washes and my 600 K is still there

That 1.9% was on a 15 year note and that $3,800 is just P&I. Of that $3,800 their monthly equity grows by something close to $3k/mo so they would still be winning even though they can't make money on the rental side.

Another fact based with alot of experience video! I love these sooo much! Thank you🌸🕊🙏✝️

I would like to see a course. I have no knowledge of real estate. I always heard the refinance myth, I haven't purchased a home. I didn't know about the insurance and property tax and sellers fee or anything. Granted, I would research this stuff if I was getting in the market, but it is really helpful to now know there are so many pitfalls. I want to learn more just so I can make the right decisions at the right time.