My biggest mistake in life was being 8 years old in 2008 and not buying property.

@oregonflatland

10 ай бұрын

No your biggest mistake was not having rich parents.

@lieutenantdan1413

10 ай бұрын

@@oregonflatland lol

@d4qatoa

10 ай бұрын

@@oregonflatland his parents biggest mistake was 8 years earlier. j/k - it was out there.

@jon9103

10 ай бұрын

2008 was rough, a lot of people lost their house, their income, etc. Even if you could afford a house, good luck getting a mortgage (let's not forget that mortgages were ground zero for the financial crash).

@Iamonepercent

10 ай бұрын

I graduated in 08', it was a nightmare.

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

@EleanorBaker474

23 күн бұрын

If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

@StacieBMui

23 күн бұрын

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

@StocksWolf752

23 күн бұрын

Could you kindly elaborate on the advisor's background and qualifications?

@StacieBMui

23 күн бұрын

The advisor that guides me is Sonya lee Mitchell, most likely the internet is where to find her basic info, just search her name, She's established.

@VictorBiggerstaff

18 күн бұрын

I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you

You're so polite describing how it is impossible for me to ever live in a house

@MurderTwoOne

11 ай бұрын

Sounds like what needs to happen is we need to get rid of the system we're living under and try something else.

@joseocampo6754

11 ай бұрын

That’s a very American individualist way to look at that. If you have siblings you could trust, you can all go in on a property or house. Or if you have financially literate friends you can trust, that’s also a good option. I have friends that split up an $800,000 home for a few years. They had issues but squashed them and they all reaped the rewards when houses went up. Sold for 1.3M and they split the profit.

@ricseeds4835

11 ай бұрын

You can live in one, you just can't own it. At least not by yourself

@YunqTab

11 ай бұрын

@@joseocampo6754 I like that idea but it would be extremely hard to accomplish. Most people don't have friends that will do this. It's not that they'd go and rip off their friends, it's that their friends wouldn't trust themselves to keep something like that in order.

@arz131

11 ай бұрын

just marry a sexy doctor

So at 60k a year a single dude I can.....never purchase a house. Ever. Awesome

@Combat_Medic

11 ай бұрын

Then go back to school and get a better job.

@smallgiant6064

11 ай бұрын

Nice homes in Oklahoma for 150k. Buddy is a welder out there. CoL is a huge thing, but not everyone can move.

@mossroks

11 ай бұрын

Not true. I make 65k a year I bought my house a year ago. 240k at 5%. You can do this

@andyhuang7526

11 ай бұрын

22years ago, when I first started working on a union shop I was making less than $18 at San Jose California! I was lived with parents and they gave me half of the down payment for my house ! My income was gradually increasing every year, 2 years ago we decided to pay off the mortgage ! Here we go ! Huge weight off the shoulders !

@mattvanin

11 ай бұрын

Right there with ya brotha. Work hard and take each day as a new opportunity.

Asking a real estate agent whether you should buy a home right now is like to asking an alcoholic whether they think you should have a drink lol. Homes in my neighborhood that cost around $450k in sales in 2019 are now going for $800 to $950k. Every seller in my neighborhood is currently making a $350k profit. Simply unreal. In all honesty, deflation is what we require. The only other option is for many people to go bankrupt, which would also be bad for the economy. That is the only way to return to normal.

@sattler96

10 ай бұрын

Home prices will come down eventually, but for now; its best to offset some of your real estate investments and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes. If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

@jessy830

10 ай бұрын

Personally, I can connect to that. When I began working with Colleen Rose Mccaffery a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market.

@jessy830

10 ай бұрын

@@Nernst96 Colleen Rose Mccaffery maintains an online presence that can be easily found through a simple search of her name on the internet.

@kristir1262

10 ай бұрын

​@@jessy830 she wouldn't happen to be related to the McCaffrey's barred for life by FINRA, would she? 😂

@MrSchn3ll

10 ай бұрын

But home prices are also being driven up by demand, the higher cost of materials in new construction and labor rates. Some areas could see a deflation of 40% like SF/Seattle/LA/Portland, but in areas where people are flocking to because of the overall low cost of living, I don't see any deflation at all. The south is on fire.

Conclusion: affording a house with the average American salary is impossible without a windfall inheritance. A feel good story for the ages. What a time to be alive, boys.

@ryan215553

11 ай бұрын

Then don’t be average , gain skills and demand money

@Tiernan422

11 ай бұрын

@@ryan215553 obviously it sucks that people can’t afford houses but how can you expect to afford a commodity when you make average

@tonycrabtree3416

11 ай бұрын

Conclusion is not factual.

@ItalianRain2

11 ай бұрын

​​@@ryan215553yan doesn't understand life has a lot of luck and got an easy route. Shove off Ryan. 😊

@gc1087

11 ай бұрын

​@@ryan215553 Skills eh, i work in cyber security and in the city i still cant afford a house. Whats the point of having a good job, inflation screwed us out of a house 1,000%. I wish i had this job 5 years ago, then i would be in a really good spot.

I really feel sorry for young single guys. I bought my first condo at 25 for $50,000 which was roughly my annual salary back then. My payment was around $300 a month if I remember right. I lived in it for three years and then rented it out and bought a single family home. My son who is now 25 makes around $100,000 a year and that same condo is now $300,000.

@aangitano

11 ай бұрын

Exactly!!

@ninja8077

11 ай бұрын

That's a bit of the issue too. Instead of selling a property back into the market it's now only a rental. Now multiply that by thousands of times over and have large companies doing the same but on a enterprise scale, you have what happens today. Not much available homes. Just a lot of places to rent. And nothing ends up being affordable.

@andrewrules231

11 ай бұрын

hey on the bright side if you lived in canada it would be closer to 1000000. you should check out what 1000000 gets you around the world, in canada it will literally get you a shed.

@beevie4081

11 ай бұрын

​@@andrewrules231 you must mean in Toronto or Vancouver. You can get a fully functional hobby farm for that price in Canada!

@andrewrules231

11 ай бұрын

@@beevie4081 in rural bc 1000000 gets you a couple acres 10 years ago it got you a mountian. the house i grew up in in the kootneys sold for 20000 in 2004 its over 650000 now

The government needs to start building more bridges. Many of us will need them to live under when we get old 😅

@ymf_brit262

11 ай бұрын

Or jump off of

@Falcodrin

11 ай бұрын

Great news! If we emulate the great depression the government back then hired loads of unemployed people to build highways and roads. That's part of why our highway network is so extensive.

@uscg1381

11 ай бұрын

The government needs to stop getting involved! I wouldn't trust them to build a bridge! Lol

@alejmc

11 ай бұрын

What’s great is that Transportation is only 2% of the budget costs (I learned that today). It’s like 19% Social Security > 17% Health > then something else > all the war defense machine > Medicare like 15% > employment insurance > debt interest payments (*only* the interest, not capital) was 8% > transportation 2%! > …

@irepairofpc31familykartrac51

11 ай бұрын

Or jump off of one

Conclusion: the vast majority of Americans are screwed.

@az9az9az9

11 ай бұрын

In Europe the energy prices double the mortgage fee. So we can use 1/6 rule for average yearly wage of 14K and average apartment is 280k. So you pay off the loan in 120 years.

@mikehenkes

11 ай бұрын

"the vast majority of Americans are screwed" is nothing new.

@nunyabusiness3786

11 ай бұрын

Don't worry they haven't noticed yet. Debt is a hell of a drug

@sarahkrig6375

11 ай бұрын

@@mikehenkes I don’t think they said it was

@fredrikhawes3387

11 ай бұрын

​@@az9az9az9 sounds like a permanent rental 😅😅

For salary earners, be aware that this is a grossly oversimplified scenario. For one thing, you can't get a mortgage on an investment property without at least 25% down payment. Two, it's easy to see comps for house purchase prices, but it takes a lot of research to understand the comps on rent prices. The trick is to find a place where renting is more expensive than buying, but those places are less common because of this very type of scenario. Three, you have to remember that rent number he's using is supposed to be net income, not gross. So you have to think about costs for taxes, insurance, maintenance and vacancy when you're researching investments. All that said, real estate investing is a good tool for wealth accumulation. But it isn't foolproof.

@sophia253

10 ай бұрын

Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.

@joshbarney114

10 ай бұрын

Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.

@rogerwheelers4322

10 ай бұрын

Personally, I can connect to that. When I began working with "Colleen Janie Towe’’ a fiduciary financial counsellor, my advantages were certain. In these circumstances, I would always advise getting professional help so they can steer you through choppy markets and just give you indicators and strategies for knowing when to enter and exit the market. Long story short, its been 2years now and I’ve gained over $850k following guidance from my investment adviser.

@eloign7147

10 ай бұрын

@@rogerwheelers4322 Same thought when I read the comments from people. as if it's that easy! You can't give what you don't have. That's why as many as who go into the market with little to no knowledge will continue to feel the full downsides of stocks when it happens. I personally need some guide with regards to my portfolio. How can I reach Collen Janie Towe?

@rogerwheelers4322

10 ай бұрын

@@eloign7147 Exactly the point! quickly do a web check where you can connect with her, and do your research with her full names mentioned..

At some point we need to eliminate investors from buying up homes as assets and inflating the housing market superficially. It's ridiculous that there is no way for me to buy a home or even a town home unless I marry someone (and even then it will likely be a stretch). Something has to change systematically.

@TrapHouseZombie

11 ай бұрын

To add to this and I know some people may call me xenophobic but I don’t think non-citizens, foreign companies or foreign governments should be able to buy land or property in the US.

@futbolfan27

11 ай бұрын

@@TrapHouseZombie Nah, that's not xenophobic at all because it is about protecting the interests of US citizens. Prioritizing our ability to build wealth does not constitute prejudice towards foreigners. Foreign investors are having a drastic negative impact on our opportunity for home ownership and are vacuuming money from our citizens through rent. Any human with more than 4 brain cells would understand that is a problem.

@bloozism

11 ай бұрын

@@TrapHouseZombie most countries don’t allow it.

@jansonrawlings8169

11 ай бұрын

@@TrapHouseZombie Agreed. People should look into the U.S.’ acquisition of Hawaii. That nation made the fatal mistake of allowing non-citizens to buy property in Hawaii. One sugar cane mogul amassed so much of the land that he declared himself the majority owner of Hawaii, starved out the queen from her palace, and forced her to sign over the islands to him. He then contacted the U.S. government and negotiated the annexation of his new country, so long as they made him the state’s governor after annexation. We must learn from history. That’s not xenophobic, it’s wise.

@gw5479

11 ай бұрын

They wont. The only solution is force

It's almost impossible to save for a home when renting is so high. I feel helpless

@shiftautomotive854

Жыл бұрын

make more money do something that'll be uncomfortable to make that money

@johnnyb33good21

Жыл бұрын

Look at using an FHA 3.5% down payment. Or think about joining the U.S. military. they have a home loan benefit where it's 0% down. I have used both of those programs. Those programs are what allowed me to get into real estate with very little money down I now own multiple properties

@johnbaptise2262

11 ай бұрын

That’s the whole point

@Combat_Medic

11 ай бұрын

Choose to live somewhere cheaper and then you’d be able to save. No one is forcing you to pay high rent.

@hobsdigree2

11 ай бұрын

Rent is cheaper if you do two things. One is not to live downtown in a major city. Live in a suburb or away from the downtown area. The second thing is to have roommates. It's not fun, but the more roommates you have, the cheaper your rent will be. If you want the luxury of living alone, you'll pay a premium for that living arrangement. Obviously, don't live in a luxury apartment either, that's going to be expensive.

I had $330k cash, 811 credit score, $0 debt, 100% on time payments for 9+ years of credit on 12+ accounts, paid off 2 cars… but 3 loan people said I wouldn’t be approved because I had a job gap 😂😂😂.. I quit my job voluntarily to go back to school and get a better job. Now I got the “high paying” job but home prices skyrocketed as well as interest rates. So back to not being able to afford a home. But somehow it’s ok for me to pay $1,900 in rent. My friends pay $800 to $1,400 in mortgages 😂😂 what a joke.

@Combat_Medic

11 ай бұрын

If you can afford $1,900 in rent, you can afford a mortgage.

@spartang.1388

11 ай бұрын

​@@Combat_Medic Yeah, in Arkansas...

@bigdavedayday1581

11 ай бұрын

Just wrong timing should have bought house before all the covid circus now just impossible with skyrocket prices and super high interest rates

@Intranetusa

11 ай бұрын

@SpartanG, I live in a high COL area on the coast and decent sized regular townhouses cost like 250k-300k in my area. That is affordable on a regular person's salary (for the area) even with the crazy spike in housing process. If the OP can afford $1900 rent then he can afford the mortgage on a 300k townhouse. If a person buys a 300k townhouse with 20% down, the monthly mortgage payment is only ~$1600.

@ChadChapman1987

11 ай бұрын

The guys doing your loans are trash. Get someone who can do their job.

I just sold a property in Portland and I'm thinking to put the cash in stocks, I know everyone is saying its ripe enough, but Is this a good time to buy stocks? How long until a full recovery? How are other people in the same market raking in over $200k gains with months, I'm really just confused at this point.

@alexyoung3126

9 ай бұрын

Yes, a good number of folks are raking in huge 6 figure gains in this downtrend, but such strategies are mostly successfully executed by folks with in depth market knowledge.

@joesphcu8975

9 ай бұрын

It all depends on how long you're willing to hold for, stocks might likely tank further, but making serious gains in this downtrend wouldn't be a problem if you're a pro.

@lawerencemiller9720

9 ай бұрын

Reason I decided to work closely with an brokerage-adviser ever since the market got really tensed and the pressure became so much(I should be retiring in 17months) so I've had an brokerage-adviser guide me through the chaos, its been 9months and counting and I've made approx. 650K net from all of my holdings.

@jessicamoore3093

9 ай бұрын

That's impressive, my portfolio have been tanking all year, tried learning new strategies to gain in the current market but all of that flew right over head, please would you mind suggesting the brokerage adviser you're using `

@lawerencemiller9720

9 ай бұрын

”Helene Claire Johnson” is the lady's name. I first saw her on a CNBC report, then on Smart Advisors, and immediately looked her up on the internet; it was the best decision I've made to stay afloat in these crazy times. She has been outstanding.

This was a very well made video. But also it's absolutely crushing to take in the full reality of the housing situation in America.

@RustyPancake53

11 ай бұрын

only the blue states

@Tselel

11 ай бұрын

@@RustyPancake53 as a resident of a rural part of a red state, absolutely not. 😂

@RustyPancake53

11 ай бұрын

@@Tselel I'm just basing that off of the top 10 most affordable states to live.

@Y2Kikii

11 ай бұрын

Canada is even worse. You can't buy anything with average salaries unless you live in the middle of nowhere .

@disnark

11 ай бұрын

@@RustyPancake53 Yes, AKA the states that people want to live in. No one is chomping at the bit to live in Mississippi or Kentucky, or most of the red states for that matter, because they're well known to just.... suck.

What’s frustrating is a home that was 90k 5 years ago will cost me 45% of my income today

@tonypajamas610

11 ай бұрын

It’s 100% a scalper’s market. Not a seller’s market, a scalper’s market.

@someone-ji2zb

11 ай бұрын

@@tonypajamas610 Which normally would be fine, but the way things have shaped out through legislation and overall cultural morality shifts, it was never going to work. Women working in mass means basic infrastructure jobs pay nothing due to overwhelming supply of men lining up for it, and women overwhelmingly line up for office work. So thanks to the principles of supply and demand, too many men are available to work the 'dirty' jobs which use to let you buy a home, but now barely (or sometimes wont) let you live alone, but not provide for a wife and kids.

FINALLY someone who accounts for net income-expenses. I don’t understand why anyone would use gross to calculate future expenses. It’s setting yourself up.

@lockinhinddanger934

Жыл бұрын

because people can easily figure out their gross income, as if you have a salery you will always be told in gross income. so say you're a 50k a year employee and you get ot occassionally, you might get say 4 hours a week but how do you know for sure what it would be after taxes ect. and taxes change, so gross is the best measure to use.

@mulletsquirrel

Жыл бұрын

@@lockinhinddanger934 Better to use take home pay (net) honestly.

@lockinhinddanger934

Жыл бұрын

@BipolarAbusiveX that's cute, yes you can get a rough idea until you actually have a career and not a low paying job. 401k, Healthcare, ect. That changes your net pay and taxes. If you dependants, changes, ect. Unless you actually have a cpa don't say it's simply this. Otherwise no one would make money being accountants.

@phantomf41

Жыл бұрын

I always go with net pay

@Novaximus

Жыл бұрын

He still didn't include medical insurance or a retirement fund for deductions. That can easily be an additional 10% of a persons paycheck. That's considerable!

My wife and I are 28 and we recently bought a home in northern California. We make combined about $120,000. There was no way we would have been able to afford anything if we didn’t get help from both of our parents. My family allowed us to live rent free on their property for a few years so we could save, and my wife’s family gave us her inheritance money early so we could make the down payment. We ended up buying a small 2 bed 1 bath in a small town for $460,000. In 2011, this same house was sold for $125,000! I honestly don’t know how others in our income bracket can afford anything anymore. We are so fortunate we both have family to help. It’s sickening and unsustainable…

@kenjifox4264

11 ай бұрын

460 for a 2 bed 1 bath? 😮

@loodakris5928

10 ай бұрын

@@kenjifox4264 this is why a lot of people are moving to dallas

@sonicmoj1

10 ай бұрын

I'm glad it worked out for you and having great parents help! Prices are high everywhere but didn't realize how high it is in California. My wife and I bought a home for $364,000 (2.66% on a 30 year conventional mortgage) in 2021 on a 2 acre property and a 4 bed/3 bath full brick ranch home (2400 sq. ft) with 2.5 attached garage in Michigan making a combined $170,000. Didn't realize how much more house you get in the midwest than CA.

@SVSky

10 ай бұрын

@@kenjifox4264 That's inexpensive for Northern California.

@imadubsfan1

10 ай бұрын

@@sonicmoj1 You really don't pay for the house anymore but the land it's on. Hypothetically California is a more "desirable" place to live, but it doesn't mean the houses are any better. You can get way more in a less desirable state.

i just bought more gold and silver few minutes ago. Tying up money due to an apocalyptic stock market crash is also not a smart move. Life is a risk and it's better to take risks than to do nothing, you can't always expect to make huge profits all the time, people have so many opinions about a recession/depression. In just 5 months my portfolio grew by $300,000 in gross profit, the main thing is to expand your portfolio and you will see amazing results by investing smartly.

@fresnaygermain8180

11 ай бұрын

Nobody knows anything you need to create your own process, manage risk and stick to the plan, through thick or thin while also continuously learning from mistakes and improving.

@belobelonce35

11 ай бұрын

@@fresnaygermain8180 I concur. That's precisely why I rely on my investment decisions being directed by an investment coach. They possess a unique set of skills that enables them to take both long and short positions, using risk to their advantage for potential upside while simultaneously hedging against market downturns. With their proprietary analysis and insider information, it's nearly impossible not to achieve outstanding returns. Personally, I've been utilizing the expertise of my investment coach for over two years and have generated more than $2.8 million in profits.

@bernisejedeon5888

11 ай бұрын

@@belobelonce35 Sounds great. I could really use the expertise of an advisor, i just can’t find while I’m away for work in canada for another year. My portfolio has been stagnant.... Who’s the person guiding you can I get a phone number?

@belobelonce35

11 ай бұрын

The adviser I'm in touch with is "Julia Ann Finnicum", she works with Merrill, Pierce, Smith incorporated and interviewed on CNBC Television. You can use something else. for me her strategy works hence my result. she provides entry and exit point for the securities I focus on.

@yolanderiche7476

11 ай бұрын

@@belobelonce35 Thank you for sharing this. I took the time to Google the individual you mentioned, and after reviewing her resume, it is evident that she is a seasoned professional. I have reached out to her and am eagerly awaiting her response.

You should do a poll on how many of your viewers have 120k just sitting in their accounts

@ryanrodriguez5293

11 ай бұрын

I'm sure if you poll people who are saving for a house/down payment, you'll notice that a lot of those people will have quite a bit in their account.

@TJHooper123

11 ай бұрын

@@ryanrodriguez5293 only if they're able to live pretty much rent free while they save.

@ryanrodriguez5293

11 ай бұрын

@@TJHooper123 not sure what you mean by that. I’m paying rent that’s definitely above the US median, and I’ve been able to save up halfway to my goal of a down payment in just 7 months. Not very impossible if people are financially responsible.

@TJHooper123

11 ай бұрын

@@ryanrodriguez5293 not many people are in a place where they can save $100k while paying rent. Just cause you can doesn’t mean it’s doable for all

@ryanrodriguez5293

11 ай бұрын

@@TJHooper123 okay, so going back to my original response to the comment: if you poll people who ARE saving for a down payment you will notice that they have quite a bit in their accounts. It’s not like people who don’t have any plans financially are just sitting around with a bunch of money. Usually if you have that much saved up, it’s for a reason and it’s because they have the ability to. That’s the point of my comment. Not saying that everyone should have that much money, in case that’s what you thought I meant.

The lesson is that you won’t get ahead financially as a single person unless you either have roommates or a very high income.

@imgabnun

Жыл бұрын

Not the rule but something to consider.

@michaelmoua4238

Жыл бұрын

Or live with your parents….😢

@KevinHammond1

11 ай бұрын

It's called investing. Rather than work for money, make your money work for you. The snowball effect will compound with time and good decisions.

@jameshughes6078

11 ай бұрын

Hey hey hey. You could always choose to be born into a wealthy family, specifically one who decides to spoil their kids.

@ZarChasmOfficial

11 ай бұрын

​@@jameshughes6078 damn if only I thought about that earlier!

My husband and I had 30% saved of the house we could afford by salary back in 2019 ( around a 220k house). Had 757 credit score built in two years. Had been employed for 3 years in our current jobs, and got rejected because "we only had one income each" so we were considered high risk by Wells Fargo (our biggest mistake was choosing WF) 2023 , that same house we wanted to buy went from 220k to 498k in Nashville. We feel so cheated... And honestly depressed. Good luck to everyone trying to buy a house, my best wishes to you sincerely 🙏

@turtletube

11 ай бұрын

What a crock of shit so even if you do everything right they still shaft you!

@grappler555

11 ай бұрын

So you only tried to get a loan from 1 lender? Why didn’t you try any other lenders?

@alejmc

11 ай бұрын

@@grappler555or a lot it’s blow to be hit by that… maybe they thought all of them would say the same. But yes, rule of thumb, for ANYTHING: shop for an item in more than one store, see which one offers the better price. Applies to mortgages and loans too. That said, what the hell, what do they expect… for people to work and then work some more? I understand that some people NEED to have two jobs (and a good idea to clear up debt quicker) but this is downright entitlement from Wells Fargo and the financial system in general: they want people to wake up, eat, work, then work some more and then some, sleep, repeat. For the ones with the money. To the couple: don’t mind it, continue saving money, maybe buy T-bills or anything guaranteed to hedge inflation while the rates are high if that’s your tune, wait later on for rates to go down (if they ever go really). The best peace of mind in the end is spending *considerably* less than what you make, sometimes I see for example $100K or $200K in savings as many many years of my $500 a month rent (yeah, that cheap I have found, and it’s Canadian monopoly funny money even). Losing the job with many years of rent saved is completely opposite to losing it with not even one day extra of oxygen because all that money got used in a mortgage downpayment.

@Layodamus

11 ай бұрын

We bought our town home in South Florida in 2019 for 255k and today 2023 it is worth 450k. Best decision I ever made.

@brandonf3865

11 ай бұрын

You cheated yourself by not calling as many lenders as you could.

Privatize profits, socialize losses. This is what happens when we treat corporations like people and people like chattel.

@Mistro07

11 ай бұрын

keep complaining...nothing will change. i felt the socialism bug start to creep into my life while in undergrad, but then I grew up

@rigatonijacobs

11 ай бұрын

Cronyism is what he's talking about. If a large Corp is working hand in glove with the government or working top down to enforce nonfiduciary scores such as DEI and ESG then it's just socialism with an extra step. This country is not capitalist. Remember the founders fought a revolution over a 3% tea tax. Look at how we are rammed in our ass daily.

@DontDieSenpai

11 ай бұрын

@@Mistro07 except I don't believe in socialism. Check your assumptions.

@Cobalt_11

11 ай бұрын

​@@Mistro07 grew up and became complacent ?

@k3nfr0st39

10 ай бұрын

That will never work like ever.

All of a sudden, I'm thinking about marriage more as a business proposition than a love tale lol

@citrineforme

Жыл бұрын

Yup 😅

@tmusa2002

Жыл бұрын

Agreed. Marry an educated career girl with a good work ethic.

@SeeOlEe

Жыл бұрын

True

@MC-qo3sj

Жыл бұрын

Marriage is a business

@mtao530

Жыл бұрын

This is why same sex folks keep pushing to legalize same sex marriage. It's not about love. It's about tax savings, health care, and the business side of it.

I love how everything is based on gross income like if you’re actually earring that amount monthly after tax your left with way less than that so take another 30% off your real income after tax for rent that’s a more realistic perspective

@NoNo-ng9sl

11 ай бұрын

I'll never understand this either. What's so hard about actually calculating that? Take home pay is the real number youre working with. THP usually equals your paycheck after fed taxes, ss, insurance & dental, retirement......after all that? That's when people calculate their living expenses. But I know people who barley contribute to their 401k bc they went all in on owning a home. I can't argue with that strategy if their home appreciated 30% in two years, while retirement accts were lucky to get 3%. Over the long run, I think people who took on that kind of strategy are very exposed.

@LamaKING21

11 ай бұрын

@@NoNo-ng9sl VERY exposed and they will all be losing their shit when markets do a repeat.. But if they dont lose their home and or never move then they will still be worse off when they are older

@NoNo-ng9sl

11 ай бұрын

@LamaKING21 I wish there was an in depth analysis on this and have yet to see any youtube channel talk about it. During the pandemic, people borrowed on their 401s. Many did so to place down-payments on mortgages. Something that as a standard and rule of thumb was always frowned upon by financnce experts--Don't borrow from your retirement to use as a down-payment. Under the idea that he 401 loans steer away market gains. So much to unpack. But what was the avg amount people borrowed? Aprroximitley, how many homes were bought under this strategy? How much is still owed? This very much all feels like a house of cards.

@LamaKING21

11 ай бұрын

@@NoNo-ng9sl So much to unpack but jesus... Dude you and I would get along so fucking well. This is the shit I keep scouring the internet for and my gf thinks its insane that I go in all this depth then theres everyone else whos oblivious to whats going on. Deadass would love talking to you more man.

@NoNo-ng9sl

11 ай бұрын

@@LamaKING21 Yeah, there's metrics I tried diving into before. 2 years ago I tried scouring online for any news that reported these figures. TD, Schwab, Fidelity, Merril Lynch....none of them released these figures. How much is still owed? How much was tied to the mortgages? If and when we hit unemployment, how will people pay this back into their accts? No one's reported on this. It's not included in any debt data since they're not traditional credit loans.

Something that wasn't mentioned in this video is that gross income is not your take home income. So when you're budgeting what you can afford by following these rules, you need to be looking at your take home income. For example, if you are within that $80k salary tier, you make $6667/mo and about $4667 of that will be take home after taxes, health insurance, and depending on any 401k contributions. Now look at the 28% rule and that gives you a theoretical maximum affordable mortgage payment of $1867. That leaves you with $2800 for EVERYTHING else in your life for the month (other debts, groceries, auto expenditures). Just keep that in mind.

Building wealth involves developing good habits like regularly putting money away in intervals for solid investments. Instead of trying to predict and prognosticate the stability of the market and precisely when the change is going to happen, a better strategy is simply having a portfolio that’s well prepared for any eventually, that’s how some folks' been averaging 150K every 7week these past 4months according to Bloomberg.

@SophiaBint-wj8wn

9 ай бұрын

That’s crazy, I’m just doing everything wrong with my portfolio.

@PhilSommer2

9 ай бұрын

Same here, 75% of my portfolio is in the red and I really don’t know how long I can stomach the losses. I’m beginning to reach a breaking point.

@blessingpaul5484

9 ай бұрын

The US-Stock Mrkt had been on it’s longest bull-run in history, so the mass hysteria and panic is relatable considering we’re not accustomed to such troubled mrkts, but there are avenues lurking around if you know where to look. My husband and I are retiring this year with over $7,000,000 in tax deferred investments. up until 3 years ago we were 100% in the S&P. During bear markets we had a perfect plan. We got an investment manager in our corner and didn’t look at our portfolio for nearly a year.

@alicebenard5713

9 ай бұрын

Patience patience patience. It's a cycle.... a sucky point in the cycle, but a cycle nonetheless.

@brittanynicolette9473

9 ай бұрын

Please do you mind referring me to your financial analyst?

You basically need to get married to buy a house. Sooner or later we’re going to see marriage business propositions on Facebook marketplace

@KouZidan

11 ай бұрын

Cherry 2000 style.

@LazySillyDog

11 ай бұрын

The scary part is the inflation we are suffering from is from the effects of government spending back during the beginning of the plandemic, we are still due for way more hurt with how the current regime has been spending. I wouldn't be surprised if getting a house would require multiple couples to afford it

@tylerroddenberry8338

11 ай бұрын

Eh, not true. Just means you need to work harder for what you want. 9 years ago when my wife and I got married, I was making $21,444.80 a year. In the first 3 years we had 2 kids. Fast fwd to today and I’m making 10x where we started and growing by the year, and we’re not even 30 yet. My wife never had to work and is homeschooling the kids. I come from a poor / low middle class family. It just takes wisdom, faith, patience, and discipline. You can do or achieve whatever you want.

@00mazone

11 ай бұрын

Not true for me. Single for life and I got a house. Its 700 sq ft but being single and living alone I don't need a lot of space. I love my small house.

@someone-ji2zb

11 ай бұрын

@@tylerroddenberry8338 That is good to hear and you aren't technically wrong, but if all men simply changed careers/skill sets to make enough money, then the country would collapse. Infrastructure pays nothing, but the supply of men is too large causing the pay to further drop to minimum wage levels. When jobs of necessity no longer let you provide for a family then we have an issue.

Even if you have no other debts, the 30% gross income for rent is absurd if you also pay for insurance, retirement plans, and state tax. So that $4166 a month looks less like $3490 and more like $2000. Now add debts and emergency savings and this paints a very different lifestyle.

@KevinHammond1

11 ай бұрын

It's simple if you stay debt free and don't buy stuff you can't afford. It's not an income issue for most, it's a spending issue.

@BluesJayPrince

11 ай бұрын

@@KevinHammond1 my comment is referring to those who ARE debt free still not meeting the 30% rule for housing. And just saying “don’t have debts, scrub” isn’t realistic or helpful.

@uscg1381

11 ай бұрын

@@BluesJayPrince I would have said loser, but tomato tomato. The point here is statistically there are certain habits that keep losers like you down. You proved this point by refuting the very simple and actually helpful information he was giving you in a more negative way. If you are debt free and STILL can't pay rent, you need to get educated and hustle. That's the point.

@jonathanlochridge9462

11 ай бұрын

Well, in a lot of places less than $1000/mo. is basically either roommate territory only. Although, if you live in a small semi-rural apartment or a small town or city then you might be able to get that low. Most apartments I can find are more like $1.2-1.5k Although, trailer-homes are also an option. I have been able to find cheaper places, but only since I am willing to move to whatever the cheapest city with jobs is.

@KevinHammond1

11 ай бұрын

@@BluesJayPrince Looks like my response was deleted or censored for some reason.

Biggest self-deletion motivation I've seen in a long time. As a 22yr old, it's amazing to realize "life" is over before it even really began, since there's no point.

@brianadams6204

10 ай бұрын

Suck it up buttercup and push thru it.

@schuylerjensen5341

10 ай бұрын

I'm 23 man and I feel your pain. Let's stick it out together. We're all gonna make it, it just may take more effort than previous generations.

@tamararoberson8060

8 ай бұрын

FWIW, buying a house of your own doesn't need to be a goal in life. You just need some kind of shelter and if you find friends and partners to live with, that cost is greatly reduced. People are even buying houses with friends, not just spouses. My ex bought a house with a mutual friend after we broke up. You just need something akin to a prenup if things go south.

@charlottesgirlfriend

7 ай бұрын

yes i understand too. i’m 22 as well and it’s so fucking hard to just live anymore

The impending sense of doom that I have just kept on getting worse as you so expertly explained how I will never have a big house. Great production value, and great video!

Housing keeps going up, yet our incomes aren't.. not much, anyway. The eventual conclusion is that 99% of us will be renting from the 1%.

@smallgiant6064

11 ай бұрын

Not the 1% but the 0.001%. Doctors lawyers small business owners and a lot of other professionals can make $360k (1%) last time I checked.

We got our house in 2020 with a 3% interest rate. My wife now keeps saying that we need a bigger house. I'm like, if we bought our current house with today's interest rates, we wouldn't be able to afford it!! There's no shot in us upgrading anytime soon. Unless I can get her back to work ;).

@lewencotte1838

11 ай бұрын

Lol I’m literally in the same boat. I just got a new job making 30% more than I was making. And still wouldn’t sell to buy a bigger house yet. I own a multi and a single house. I make about 150k by myself now in my area that’s really good and she just can’t keep a job so guess Im back to square one. I wish these rates would go back down. I’d totally buy another multi property and then stack up!

@patrickr2691

11 ай бұрын

LOL @ the last sentence

@gen4john660

11 ай бұрын

Well, how much is your house worth? I sold my house last week at a huge profit which is going to help. Then, I'm going to accept the high interest rate until I can refinance

@PickledShark

11 ай бұрын

I’m trying hard to feel bad for you, but just can’t. You have a home and a low interest rate.

@dimains6011

11 ай бұрын

​@@PickledSharkhe didn't seem to want anyone to feel bad for him

I've just shared this video with my kids because of all the video's I've watched on this subject, you combine rent and housing with clear and concise explanations of the numbers without the extraneous ramblings of other KZread presenters. Excellent work.

This is the best, most down-to-earth and honest representation of home buying I've ever seen. Thank you.

I'm a single parent, I could only afford a studio apt with my 2 kids. I'm thinking of turning to crime

@Thedjsmokeybear

11 ай бұрын

You have two money eaters, yes

@GrandChessboard

11 ай бұрын

Leave the country, that is how that is going to work for you.

@airflowsnature

11 ай бұрын

Not worth it man, find another way. Best of luck!

@Misaamanenoir

11 ай бұрын

That's what they want and expect you to do. Things will continue to get worse and worse because none of them are incentivized to make anything better for the rest of us.

@ItalianRain2

11 ай бұрын

​@@GrandChessboardYou think moving is free?..

Got it. Will be relocating to my nearest bridge and buying a gym membership to shower 😂

Investing in alternative income streams that are independent of the government should be the top priority for everyone right now. especially given the global economic crisis we are currently experiencing. Stocks, gold, silver, and virtual currencies are still attractive investments at the moment.

@IrenaDolinsek

11 ай бұрын

I've been able to scale from $50K to $189k in this red season because my Financial Advisor figured out Defensive strategies which help portfolios be less vulnerable to market downturns.

@LarsBergstrom-uh2eu

11 ай бұрын

@@IrenaDolinsek Trying times are ahead, and good personal financial management will be very important to weather the storm. It would be very a innovative suggestion to look out for Financial Advisors like " Kathleen Yanelli Carole, who can help shape up your portfolio.

@Erinmills98

11 ай бұрын

@@LarsBergstrom-uh2eu Where can I find this Advisor? I have to profit from the market's decline.

@LarsBergstrom-uh2eu

11 ай бұрын

@@Erinmills98 Thanks for sharing, I just looked her up online and I would say she really does have an impressive background on investing.

@daniel-ur7jg

11 ай бұрын

The fact that someone just had 3 bots replying to each other in order to pull off a scam ad on a video about how impossible it will be to buy houses soon truly is the perfect exampls of late stage capitalism

Times have changed. I bought my first home (100 year old farmhouse) in 1994 for $87K. Paid off my mortgage in 15 years. We've moved twice and now live in a $480,000 home simply due to value of real estate going up over the years. We've never had to put more money into the house. The sale of our previous house always paid for the new home. Homes in my area go for over $350K for starter homes. It's difficult to find a home under $300K that doesn't need a lot of work. We have friends that bought a $270K ranch but it needs a new roof, A/C, Furnace, Septic tank, electrical, etc.

@kylehendra6740

11 ай бұрын

There are definitely misaligned incentives for housing supply to reach demand. Using housing as a vehicle for wealth was a pretty shortsighted move for the post-WWII US government.

@tamararoberson8060

8 ай бұрын

Even well outside Seattle, houses are twice that. Houses under $600k need significant work. So I guess a starter home is $6-700k. Inside Seattle or the wealthier eastside, single family homes are over $1M. My rent is $2500 for a 2bdrm apartment, a mortgage would be like $4-5000+. I would also like to eat... It doesn't seem sustainable if only VPs at Google can buy a house...

I never base these things on gross income because I lose like 30% on taxes 😭 Always net. And with that in mind, I can afford about $768 rent. In a city where a single bedroom apartment is at least $1200. So… time to find a good cardboard box to live in.

@OveranalyzingEverything

11 ай бұрын

Right? I was like was that after taxes. Cuz no way. Those numbers don't add up for me.

@mudkip737

11 ай бұрын

Lmaoo same! Let’s just say ive been at my place if work for 8 years and I make a net of less than 40K / year. I work in a production environment.

I've learned that most people with big houses or expensive vehicles can't afford them. They are most certainly living above their means and are barely getting by

My takeaway here is I'm renting for life. No that's not your fault, thank you for making this, genuinely, I mean it. This has a lot of info and helped me gain some perspective I had my hopes up, but now with the reality hitting hard, I believe it's better for me to accept my position and focus my efforts elsewhere. Also, seeing that the "Renting" segment is the most replayed part of the video says something

@someone-ji2zb

11 ай бұрын

Well according to the 2022 average man's income under 40, most single men likely can't even afford rent on a single income rofl Roommate life for most. Huge reason why marriage rates are in the gutter right now because men just can't plain provide anymore

@sLim88CPC

11 ай бұрын

But then ask yourself how your finances will look like when you are pensioner. Will you still be able to afford every now and then increasing rent? With inevitable healthcare costs rising with age too? If you don't look that far in the future and try not to think about that ignore my questions. Either way, good luck, genuinely and honestly, hoping you will make it work somehow.

@Xanthelei

10 ай бұрын

​@sLim88CPC If they can't afford to buy a house, what is there to consider? There comes a point where you have to admit when something is out of your ability to influence, and right now 'can I ever own a home' is one of those things for the majority of Americans. It's going to take something in the system break a la 2008 and/or major legislative pressure to bring prices down to where the average person can even aspire to owning a home they didn't inherit. It is MORE responsible to admit when something is just a pipe dream and focus that energy towards something attainable than to keep trying to reach 1970s version of 'being an adult.'

@Aighthandle

10 ай бұрын

Consider joining or making a tenant’s union. Landlords have an extra advantage when their tenants are disorganized

@skillethead15

10 ай бұрын

I am in the same boat and that’s why I went to the extreme. I currently live out of my car by choice. I am building up my credit, paying off my debt and saving as much as I can. My monthly expenses are around $600 and everything else goes to my pockets. My dad offered to let me stay with him for $600 a month but i’m not even going to do that because I want to build up my financials as quickly as possible. I refuse to be a rent slave for the rest of my life. I’m going to rough it in my car for the next 5 years and hopefully I’ll have enough saved to afford a small house with a little yard for myself.

I was a law student during the fallout of the mortgage crisis. I did some work with the local Legal Aid group who held seminars for people facing foreclosure. Overwhelmingly, the reason folks could no longer make their payments were: 1) divorce 2) medical bills, or 3) lost hours at work. I know home ownership already seems out of reach for most people, but try to leave yourself a buffer because life happens.

@lynnmckenney1987

11 ай бұрын

It's so depressing to know that even with health insurance, a trip to the er could cost my family our house.

"don't try to look at what your friends are doing" Truth! Cause most of them are BROKE

@imgabnun

Жыл бұрын

That's right, you do you

@bw1532

11 ай бұрын

Also maybe get smarter friends. People that seek status maybe aren't the best people to surround yourself with.

@GlenMcDowellFarm

11 ай бұрын

One of my vehicles is 8 years old and the other is a 23-year-old truck with 400k miles on it. On the road I look poor. But by saving there I'm able to keep up payments on my farms, which is my priority.

I really appreciate how you try to look at different scenarios for a wide range of folks. Thank you!

As one of the other commenters noted, a standard mortgage payment is fixed whereas rents can go up (or down). Typically your salary rises over your career, so your ratio is likely to improve. Also need to account for the mortgage interest deduction. I pay close to $22k interest per year and get back c. $5.5k. Where I live in Virginia that covers my property taxes and a good chunk of my insurance.

Bruh, I make $100k and the 30/30/3 rule still seems unachievable in my area. Houses are so expensive :’) The msot I can afford is $300k, but the cheapest home is $350k for a janky one

Saving up 30% seems totally crazy. I put 5% down in 2020 and got rid of PMI 2 years later after the value went up $140k. If I would have waited till I had saved up 30%, I would still be in my parents’ basement and would own $40-$50k less in equity. The market conditions are much different now than they were then, but it shows that the standard advice isn’t always the best.

@qNOXIOUSp

Жыл бұрын

Yes but it is highly unlikely home prices will go up like they did the last two years and you are able to gain significant equity from appreciation alone which would mean you would be stuck paying PMI much longer and would need to rely on paying down additional principal on your mortgage to build equity to get rid of PMI. The last few years are not standard and historically appreciation is only around 3% annually.

@2wheeldom11

Жыл бұрын

People that bought in 2019-2020 you could say "got lucky" because values shot up like a rocket very quickly. That's not always going to happen. If market goes down many would be upside because you're buying so high.

@joshuagunthner1838

Жыл бұрын

usually targets people already in a home who have built up equity they will be able to get at when they sell. In my case we bought a piece of raw land for 16k in cash we were able to save up for. We sold it for 37k and used that as a minimum down payment on our current home which we bought for 400k. We paid pmi until the value shot up and then we refinanced when rates were low which dropped quite a bit from the payment. We are now sitting on over 250k in equity. People who got into their first home via FHA also can do this if they can actually afford the payment, then after even 5 years they should be in a position to used earned equity on the next one.

@Ty-cj8bm

Жыл бұрын

​@2WheelDom from 2015 to 2020 in my area my home price increased 100k and 2020 to 2023 it also increased by 100k. I bought in 2020 so I was lucky, but it really feels like the new normal is starting to be a consistent rise in home prices.

@Lomhow

11 ай бұрын

​@@qNOXIOUSp I don't see the coming dip at all. There are a ton of areas where housing never came down from the rising values.

As a 23 year old making $16/hour, living on my own, and struggling to find work with better pay, this video doesn’t exactly instill confidence in my future… :(

@cyprian431

11 ай бұрын

the sad thing is that that is actually decent pay all things considered, over twice as much as the gov decides you need to live.

@andyhuang7526

11 ай бұрын

Try the job hopping and learn as much as you can! I am sure you will make a lot of money after 2-3 years!

@sewerrat7612

10 ай бұрын

​@@cyprian431depends where there at that's just about min in my area

When I was looking for a house I created a spreadsheet that calculated my in pocket money after all expenses. I was honestly shocked that the mortgage broker, real estate agents and anyone else I talked about this with didn't have something similar. My spreadsheet was made in a few minutes and is messy but if I sat down for an hour I could probably make it really nice (maybe i should and sell it). What I hate about this whole home buying thing is the whole thing. The purchasing of a home is just the very first part, which is already a mess. Next is homestead taxes and taxes in general. My home increased by 100% in 4 years which means my taxes also went up. Home insurance is insane right now as well. Maintenance costs if an older home. Natural disasters such as the freezes in Texas. General maintenance, upgrades, cost of living, energy charges fluctuating. All these things and more add insane amounts of financial burderns and stress.

@naryneitred

10 ай бұрын

None of this stuff is communicated to you BEFORE the home buying process by the way. It can be very confusing to do this on your own and costs money to get help. Sometimes you get lucky and your real-estate agent or loan provider/broker may have some of the "after your buy" tips, but from what I have been told, that is rare.

30/30/3 is a super clear, super straightforward rule, love it. Thanks for the video! I never said I can afford it, I just love the simplicity! 😂😂😂

I barely see houses under $250k anymore. I don’t see how this will work unless everyone move to the middle of nowhere.

@eons6086

11 ай бұрын

Hey Joe, it really depends on what state you live in. Yes it's high everywhere but some states are better than others. I live in NYS in a small town near nothing but farms , woods etc. not NYC which is 6 hours away and a huge city. You can find a house under 200k however you must utilize assistance for 1st time home buyers if eligible also if your a veteran, or if your a recent graduate within 48 months are all programs that help some individuals with home ownership in great areas. However if you want it cheaper you will be in the middle of the woods or in a undesirable area. However don't give up research what's available in your state that maybe available to you. Good luck!

@xohealthy

11 ай бұрын

In South Carolina you can!

@ItalianRain2

11 ай бұрын

Guess what isn't in the middle of nowhere. My job!

My frustration level went up up and way up after watching this video.

Hey Humphrey, one thing I'd also point out is that in HCOL tech cities, a lot of people are working for private companies. Like in public companies, a lot of the total compensation people are getting is equity, but unlike public firms, that equity often has limited liquidity and questionable value. Secondary markets aren't always an option, your company's valuation can change for the worse, and stock dilution is a very real and expected danger. So for those folks working for privately held companies in HCOL, the chance of owning a home gets even smaller!

As someone living in southern California, we go by the 70% rule. Where 70% of your income goes to rent and the other 30% goes to taxes.

@zuzanazuscinova5209

9 ай бұрын

😂😂

I’m a military physician and I sold my house in Southern California during the pandemic after being issued overseas…. 3 years later… I can’t afford the same house! Bananas.

@deljonfinister3598

Жыл бұрын

I had a friend who got orders to phoenix bought a home and literally had almost $100k-200k increase on his home after only living their for only a little over a year

Property taxes are increasing at an alarming rate and should be considered class Warfare in certain areas. Also keep in mind that if you improve the appearance or your home and property or simply put in a new bathroom or kitchen, you will be paying MORE in property taxes when the assessor comes around. Strange how home owners are penalized for improving their neighborhood. Home ownership in the USA is yet another bait and switch. Backwards!

@arashalphonso

Жыл бұрын

Paying for someone else’s mortgage and property taxes by renting is not any better

@jimbob483

Жыл бұрын

@@arashalphonso Also true. Inflation cycle of hell. The system as it stands opposes the very idea of the self made man/woman in this country. There is simply no way the American working class can compete with and/or reasonably cope with the continued fallout from absolute and abject greed from the 1%

@jackfranklin1185

Жыл бұрын

So sell

@justalittledangerous

Жыл бұрын

If we taxes income better, those who can afford property and therefor property tax would not be relied upon to fund our society but here we are

@Matthew-rp3jf

Жыл бұрын

Yeah I feel sorry for all these people who's homes have doubled in value in 5 years...real class warfare. Why don't you sell your house and relieve yourself od this burden by moving into an apartment.

I’m glad you used Raleigh, NC as one of your examples because my dad just doesn’t understand how insane rent is. He bought his house in 2001 and is golden. I live in a box and pay essentially 1400 a month. Raleigh, NC is one of the fastest growing cities in the entire US and in the past 15 years has gone from one of the lowest cost of living cities to an expensive one. It’s insane and we can all thank Ronald Regan and the greedy billionaires for this.

@racegrubb2152

7 ай бұрын

I live in New Bern NC and rent is high here too. As well as houses for sale are way up

I watched a few of your videos. Impressive. I have my own spread sheet to calculate "Rent vs Buy" but I am going to use yours from now on. Yours are more comprehensive.

@llee888

9 ай бұрын

By the way, I am here looking for a spread sheet that answers the question: How much a house can I afford? Found none. (I have one for my own use.)

I've paid over 300k in rent since high school but mortgage lenders say I can't afford a mortgage that is lower than my rent which I have never been late on in my life. Been saving for a house, everyone says no. USA is such a scam

Another important thing is check and make sure you can maintain payments even if interests increased by at least 3%. Also, don't listen to the boomers saying "back in my days interest was 15% and we had no problem, cut back on your avocado on toasts and start with something cheap upgrade later". Situation with them was sooooo completely different environment to what it is now. Their median income was $25k and their median mortgage was $50k for a very decent home with just $5k deposit and cost of living much lower and loan term was 12-15 years. Now the median income is about $50k but median mortgage is $300-400k on 25-30 years term. Their monthly repayment was about $700 even with 15% interest, yours now is $2000 with current interest rates. On top of that their loan term means they paid off their first home by 35yr old, and sell off to upgrade to their second and paid that off by 40-45 and even a third or fourth or build up investments by the time they retire. Current generation needs years to save up deposit and on track to pay off first home by 50-60yr old. Basically, you need to do your own maths and come up with your own life plan, you cannot just copy your parent or grandparents.

@HiddenAgendas

11 ай бұрын

Why would interest increase? I have a 30 year and interest and payments stayed the same. Bought a 4 unit rental in 2017. The only thing that increased was Property tax. Fucking Red states taking all my money

@Grushenke89

11 ай бұрын

Basically inequality has grown a tremendous amount.

@mycelia_ow

11 ай бұрын

​@@Grushenke89 yeah way more than inflation, and wages have been stagnating since boomers were millennial age

@SerenityNow....

11 ай бұрын

Ya, everything is like that now. My dad went to Harvard in the mid 50s. The tuition was $500 per year when the median household income was $4000 a year. Everything in this country is becoming financially untenable.

@mikeydude750

11 ай бұрын

yeah i would gladly pay 15% interest on a 50k house lol

Great delivery of information. The affordability challenges are real out here. Best thing to do is build up them credit scores, pay down your debts and keep working towards your goals. Me and my wife just got preapproved recently and with the low inventory currently in Texas, It's very hard to find a place that checks the important boxes. It's not a buyer friendly landscape right now.

I think the most important aspect of this has to do with it being designed (intentionally) to be applicable to anyone on the surface. This is the absolute best case scenario using these numbers. As he touched on about the regular bills we all have that are not considered housing expenses. Vehicle loans and general “healthy” debt. But let’s not forget health insurance, and retirement. That gets taken right off the top. Health insurance, if you’re lucky enough to have a portion paid by your employer, still usually has a notable cost on the employee. But what do you do, gotta have it or live with the crippling fear of medical debt. Retirement is similar. Gotta pay into it, or live with the crippling fear of having to retire as a bridge troll. I could go on and on. These are just two common examples, but they directly impact the take home. Don’t forget deductibles, co pays, and losses in your retirement. Moral of the story, there’s gonna be a massive problem when we are all old, and we don’t have equity in property, mortgage/rent that’s still being paid, and whatever fresh new hell awaits.

Loving all your earnest content, Humphrey. Cheering for your impending Million subs!

@humphrey

Жыл бұрын

Legend! thanks!

also all this is showing me is we're all criminally underpaid compared to the cost of living anywhere in this country lol

@blackdan0259

11 ай бұрын

it is not anywhere. you need to understand modern people have very particular choices. With choices comes consequences. There are many less desirable area across the US with cost of living and property less than or about $200k. Since you said it is criminally underpaid, then how come the people want to join to be a member in "criminal" area just because it is your choice in particular? Did you hurt yourself if you move? Why don't most people move and grow other area across US than flocking to their comfort bubble?

Before even seeing where the Craigslist ad was from I recognized this apartment complex in Sf! It’s brutal out here. $2400 for a 1bedroom. No yard space etc and it’s a walk up- 4 flights for me. So much fun w a sprained ankle and a dog 🫠

Amazing video! Just bought a house with my wife both in our early 30s and we make a combined 110k a year but have been saving like crazy and just bought a 400k home and had to go over all of this the last couple months.

I very much appreciate the effort put into this video and the way you convey the information you're providing. I just happened to click your video and im glad i did. Its content creators like you that make KZread with your quality. I guess it might be simple but to me a person sharing their knowledge with others like this is amazing. And for most it is offered free. Just have to shout out real.

I left DC metro over a year ago and moved to Charlotte. 450k here vs DC is laughable. 2016 home, 2 acres, 45 min from city Dc that would be 1990 home and needing complete renovations with a fraction of land

A lot of good information. Earned a sub.

Yeah I like that 30/30/3 rule I hadn’t heard of a home no more than 3x your salary and I think that is good. It would probably be risky to save up too much or get too much of a mortgage where you can afford the cost but not the maintenance costs. I really hope we have a housing crash coming soon.

The 30% rule also doesn't take into consideration taxes.

@ryanrodriguez5293

11 ай бұрын

This was stated when he mentioned that these are based on gross income.

@MorganMalfoy13

11 ай бұрын

or health insurance and money going into a retirement account.

My wife just I just purchased our first home in SC. Big tip, buy new construction. They have their own their lending company and can give you a better interest rate + incentives to lend with them. Also, everything is brand new and it comes with many warranties.

Question, for the 3 part of the 30 30 3 rule, by “annual income” you mean gross before taxes and deductions correct? This was a very helpful video thanks!

Summary...if you are making less than 100k and want a house in the next 4 years give up or marry rich... Got it

@zuzanazuscinova5209

9 ай бұрын

That's it

One thing I don't get is why a lot of these rules account for gross income. The taxes vary drastically and houses are usually more expensive in places where taxes are also high. How much you spend should be based on how much you get in hand.

@LetsDriftMedia

Жыл бұрын

Was thinking the same thing, Gross income doesn't mean much when it comes to how much you can afford since your actual take home income is the money you actually make. Still an informative video non the less.

@tamararoberson8060

8 ай бұрын

I think people can easily think, "I make $100k per year," rather than "I make $72k per year". That feels sadder. There's also mortgage interest deductions on federal income tax, so that offsets it a bit.

Subbed and liked just for the picture behind you. Good video too.

This was extremely helpful! Thank you, Humphrey!!

I was so proud that I finally got a job making 90k a year in California. Then I started studying what it will take for me to get a house or a car and it's just depressing.

@imgabnun

Жыл бұрын

It's very difficult to achieve your goals on your own, take this in mind when dating

I’m so happy I was born, raised, and am content in the Midwest. Housing is not a problem around here. Everybody with a decent job can buy a house.

@anavillegas6199

Жыл бұрын

Where in the Midwest cause where I live (still in the Midwest) it's getting quite hard to afford one.

@tmusa2002

Жыл бұрын

@@anavillegas6199 I just searched every Midwest state for houses 100k or less and every single one had hundreds if not thousands of options. A spot check shows that many/most states do. I’d personally stick to midsize cities and small towns and ask a realtor which neighborhoods to stay out of. A very quick check of my small town (25k) shows five houses under 85K that are easy to see are neighborhoods I’d live in (aka, the north side of town). There are likely more spread throughout that would take more checking. Get an app that will filter for price and location.

Housing is crazy right now especially in Australia. Higher interest rates, building companies collapsing, immigiration levels rising and supply was already exhausted.

really well done, and important. thank you

A good amount of people would probably fit the 30-30-3 rule here in Mississippi, it's one of the few places where the housing situation hasn't become completely outrageous. I know Mississippi isn't as glamorous as NYC or LA, or as trendy as Denver or Portland, but I had the opportunity to live in all of those places and it would've just stretched me thin. For now, I own a home on the Mississippi coast, the value is increasing on it, and I'm able to save for other things. And who knows, maybe I'll move to the west coast in the future. But I like my setup now, it's actually a pretty chill place to live. Median home price is about 25O-300K, but there's plenty of housing below that price range too.

@themanifestorsmind

Жыл бұрын

Same here in Georgia, well away from the Atlanta area of course. Most homes on the market are somewhere between $150k-300k. Anything above that is practically a mansion lol.

Great video. I’m subscribing. I wonder if median sales price is skewing how houses are viewed the last few years. I suspect that rising prices have made lower income households less likely to buy or sell. The well-off have the luxury to afford to move, so the higher end hasn’t stopped buying as quickly. Is there a way to address the median house that exists in the US, vs the median house sold this year? The “median house sold” may be a lot nicer than the actual “median house”.

Thank you so much, very helpful.

I remember when people would say "renting is throwing your money away". Right...meanwhile you can pay a bank double the purchase price over time for a stick built home and then some for upkeep / repairs.

I'm so thankful at 43, my home is paid for.

Income being 3x your gross income requirement is essentially required for most large rent establishments here in the Phoenix Metro area. Doesn’t help that it’s already difficult to find a decent 1bd/ba for under $1500 these days.

@eagle25311

Жыл бұрын

I don't know why people try so hard to live in giant cities and rent wasting money. I live in a suburb of a larger city in a house i pay mortgage on and it's way cheaper than even renting in the city.

@markchavez2011

Жыл бұрын

@@eagle25311 it’s all perspective though and depends on where you want the box you live in to be close to. Some people don’t like activities, being close to venues, airports for travel, etc where living far out or in a small town makes sense for them. For me, I’m willing to sacrifice having a bigger, detached box to live in so I can be 15/30 minutes max from all the above places mentioned. It varies on your version of ‘living rich’. I’ve seen people that can’t travel or attend fun events and things because they live too far out or are ‘house poor’, and so renting to me in the city center makes the most sense for more happiness.

@eagle25311

Жыл бұрын

@Mark Chavez I must have gotten lucky I'm 25 from city center but it's in nice suburb way nicer than living in city and cheaper

@Demopans5990

11 ай бұрын

@@eagle25311 Some larger cities with good public transportation allows you to skip the car payments and fees. It doesn't justify NYC being incredibly expensive (while entire blocks are sitting empty), although I suspect prices are more sensible outside Manhattan. At the same time, working in a place like NYC allows you to just constantly max out your 401k because the pay has to match the cost of living

@m_rod9562

11 ай бұрын

@@eagle25311 the main thing for me is i basically grew up here and have a good paying job with a ton of benefits. Its kinda hard letting that go. But if i ever fond myself struggling financially because of cost of living I’ll probably leave.

On the 30/30/3 rule I managed to meet all the first and final rules by buying a property that needed A LOT of working doing to it. I intentionally didn’t put down a 30% deposit so I could spend money on the house and I have ended up with 45% equity in the house based on its current valuation, whilst my house costs account for 20.6% (including mortgage, insurance, council tax (uk based) and utilities) of our income and the property is worth 4.1 x our income. It has taken nearly four years to get to this place but has definitely been worth it and is something I would recommend!

My husband and I are so lucky that we were able to purchase our homes in 2015 and 2021 in a high cost of living area in California (20% down on each house). There is no way we could afford even one house right now with a 6% or 7% interest rate.

“You will own nothing and be happy” - Klaus Schwab

@mup8661

11 ай бұрын

Just remember, he's the front man.

@Intranetusa

11 ай бұрын

NIMBYism and underbuilding are the real reasons why housing is unaffordable. Existing homeowners prevent the building of denser housing in their neighborhoods to preserve their property values.

With rates shooting straight up, I would probably take an even more conservative approach to these numbers because you now need a cushion to be able to keep up with the pace of property tax increases. Buying to your budget today may allow property taxes to push you out of it tomorrow.

I had the housing cast way under what I thought. We spend about 20% of our monthly income on housing, including utilities and maintenance.

I dont love that for a lot of personal finance formulas, they take your gross income into account, not net. If you have to pay for family health insurance, are in a high tax area, or are trying to save for retirement, your net income might be a lot lower than it feels

The issue is 30% of income is about 1K and you will not find apartments for that price when you will find for that price is a shed in someones back yard that just has a bed and a power outlet everything else you go to go to walmart or a gym.

Regarding PMI, an important aspect to remember is that PMI will go away once you make enough mortgage payments to cover that 20% down payment so your mortgage can be cheaper after a couple years.

@WilChu

11 ай бұрын

If you put down 3.5% and go with a 30 yr at 6.5% interest, you won't get to 20% "after a couple years." It's more like 11 years

@Mandocammarano505

11 ай бұрын

@@WilChu that’s a couple years in my book. Still not paying it for the entire term, and can always make additional payments if needed. Really depends on the initial cost of the house.

@AllisonBailey-hd3jh

10 ай бұрын

When I bought my house in 2016 I had a 30k down payment in hand (for a 165k house, now 290k if you can trust Zillow - questionable), but my mortgage broker suggested I pay PMI upfront. It was about 2k, and it freed up 13k of that down payment for repairs, furniture, and nest egg. No need to have the house reappraised to get out from under the PMI either, though I did have it reappraised when I refinanced. I finished grad school in 2009, so a FANTASTIC TIME to join the work force. At least I got low mortgage rates out of it. I made about 48k at that time, and I would never been able to accomplish it if I wasn't the beneficiary of FOUR generations of parents helping their kids buy their first house. I do not envy first time homebuyers, and I'm seriously concerned if I'll be able to do the same to help my daughter. But she's four, so I have a couple years.

ive just started watching your channel, im beside myself! im turning 30 this year and buying my first home. I didnt realize how much ive been doing right! between this and your "how much car can you afford" ive been pretty spot on the numbers! Once i get setteled in the new house i plan to start investing more on my own aside from my workplace's retirment match. its never too late!

One of the renters in Raleigh NC. Had to move out from being with room mates in 2021, but I'd finally just scored a 'grown up' job with good pay so I figured I'd be able to afford a single bedroom apartment. Before I started the search the prices I saw were around 800-900 for something basic. When I started searching the prices started going up, I got tired of being told the 'only available units' were 1300+ so went with a stand-by that was 970 a month. One year later I had to move out and back with friends. The rent kept increasing even after my lease was written, when renewal time came around I'd found I was going to have to pay 1300 a month for a basic, small, 'not' luxury single bedroom apartment. Even now, almost a year later, I've checked in every now and again and seen single bedroom prices at around 1600. That's insane.

@jacob07221

11 ай бұрын

HAH i pay nearly $1200 a month for a 250sqft studio where im at. the idea of ever owning a home has all but been drained from me. Also I lived with 5 roommates before this. And i still earn $3000/mo but its been debilitating with all the other bills i have

@williamnother8066

11 ай бұрын

@@jacob07221 The thing that boils my piss the most is the requirement that applicants make 3x the rent per month from their work. WHO'S MAKING ALMOST 5000 A MONTH AND WANTING A SHITTY SINGLE ROOM APARTMENT!?

Even if I could afford a house in a high cost living area, people are paying way over asking price, so it’s near impossible. One house in my area went 200k over asking and it’s not a special house. The demand is crazy.

Great video. I see how these numbers make sense, though they were hard to consider when I was a new graduate and trying to provide for a young and growing family. Now in my mid life, and pushing 25 years in the career field, I am closer to the standards presented. Cars are simply ridiculous in price lately.