Okay.. but I feel like Rachel didn’t understand the entire point or answer the question: the median home price across the country is $400k with the interest rate climbing by the day, and most of us are out here making $30k, $40k, $50k! And rental prices are at least double what a monthly mortgage payment would cost. Can anyone answer the question of what we should do between this rock and hard place? Sincerely, A 30 year old homeless millennial

@murraybeachtel8585

Жыл бұрын

It is difficult as well that builders are not building affordable housing. I was very fortunate to find a small ranch home. Every new house I see built are mini mansions worth 400k plus.

@Mattie_Ice

Жыл бұрын

To answer your question though I humbled myself and crossed out some things on my must have list. I found a home in my budget but it needs TLC. If you're handy or like the idea of diy you can make it work. Hope this helps cause I too was scratching my head and wondering, wth is going on?

@ragingbull3157

Жыл бұрын

Inflation has outrun our paychecks..just say it. The regular guy is doomed. We're not going to get that house. There. I said it.

@SpicyBoba7431

Жыл бұрын

Well let’s first start with not exaggerating. Rent is definitely not 2x the price of a mortgage.

@sdot3358

Жыл бұрын

@@SpicyBoba7431 my rent $750 in, Harrisburg PA, and I have a roommate. Just stayin here for now until I can afford that down payment for a house

I think limiting your home payment to no more than 25% of your take home pay is smart... its the 15 year mortgage only advice that kills 95% of people.

@Sizukun1

Жыл бұрын

Yeah, you can always put yourself on that 15 year plan but lockin in the 15 year mortgage often puts it out of most people's affordability. Lock in that mortgage and stop your rent from going up, pay more when you can.

@AIMIWA95

Жыл бұрын

I don’t know how it is in the states, but in the UK you can take your mortgage out over whatever length of time you choose, then overpay on it by up to 10k a year without any penalties. Interest is also only paid on your monthly payments, overpayments are interest free. So I don’t see the logic in the 15 year rule either. I took mine over the longest term I could, which kept the minimum payments as low as possible, then overpay while I can. If times get hard, I can drop my payments back down to the minimum which in my case is really affordable as I wasn’t silly with the amount I borrowed and the size of house I bought.

@ryand7713

Жыл бұрын

We have a 15 year - and our payments were more like 35% THP when we started. I've gotten a nice raise, and now it's a lot more reasonable. No debt besides our home either. 25% is smart but I'd do the 15 year at 40% THP before doing a 30 year.

@ryand7713

Жыл бұрын

@@AIMIWA95 You get a better interest rate with the lower terms also.

@enricopallazzo3244

Жыл бұрын

@@Sizukun1 It’s really not that dramatic of a monthly payment change, especially with current interest rates.

It's not like people are looking for a huge luxury home...a basic small houses are priced outrageously.

@blackworldtraveler3711

Жыл бұрын

You’re looking in the wrong places.

@Ovulations

Жыл бұрын

@@blackworldtraveler3711 why is someone expected to leave the area they work or the town they live in? Like this is a real problem and y’all are telling people to stop trying to live outside of their means when two years ago it was way more within their means

@blackworldtraveler3711

Жыл бұрын

@@Ovulations I don’t expect anything. Not telling anyone to do anything. Just saying the obvious. Don’t know what type of reply you expect to read here after a post like that. This will always be my response. I’m the type that plan,get things done,and won’t waste time complaining about it. Heck it’s your life not mine. I’m good.

@BTrain-is8ch

Жыл бұрын

@@Ovulations If you can't afford it you can't afford it. Trashing your finances because you feel entitled to live in a certain place is self-destructive.

@vitamind_forme3850

Жыл бұрын

Unless you live in the middle of nowhere where jobs are limited, good luck

I don’t know, things are pretty rough. We don’t live in a expensive area and our daughter had to move back home. She is trying so hard to buy a home. She makes a good income, has zero debt, has a hefty down payment and yet there is very little available that she can actually afford!

@blackworldtraveler3711

Жыл бұрын

She’s looking in the wrong areas.

@MikeThePike316

Жыл бұрын

Lower her standards. I'm arguing with a bloke now who claimed there were no homes, condos, or townhomes in Arizona for under $300K. There are. Now he claims that there are homes, condos, or townhomes for under $300K, but they're only 800 ft², located in the hood, and need ridiculous renovations. Likely a false claim considering his first claim. More often than not, the problem isn't the lack of inventory, it's high expectations. People treat homes like financing cars: buy something expensive and spread the payments over the longest term possible to make it more "affordable." It's asinine.

@Simplyput-

Жыл бұрын

@@blackworldtraveler3711 Actually not at all!!! Looking further out, and definitely not the best areas. I don’t want my kids in crime ridden areas… no point if your not going to increase any equity in those types of areas.

@Simplyput-

Жыл бұрын

@@MikeThePike316 nope, not the case where we are located. Our area didn’t increase like AZ and Tennessee, etc. Yet, still super difficult to find anything affordable. I’m all about Ramsey solutions. Ran the plan and successfully finished all the steps. Just in our daughters case it’s been very difficult. I also don’t want her in a crime ridden area!!

@MikeThePike316

Жыл бұрын

@@Simplyput- Unless you live in Martha's vineyard or some other high cost of living place, I beg to differ. Every place that has more affordable living is not a hood. That notion is probably not even based on looking at crime statistics from your local police department. Lol. The issue is not always a lack of inventory, it's expectations.

LETS DO SOME MATH. Rachel is 34. It took her a decade to UPGRADE her home which means she was a homeowner well before the age of 24. Let that sink in when you think she can relate to her audience. She has no experience in the realm of financial hardship.

@unfairsanic5089

Жыл бұрын

No, but her dad does

@jordanporter4518

Жыл бұрын

@@unfairsanic5089 exactly. Which is why i respect Daves position. He understands what it mentally and emotionally feels like to have no money, but the bills keep coming.

@amireallythatgrumpy6508

Жыл бұрын

@@rd24life He still knows what it's like to lose everything, which means he knows more hardship than most.

@blackworldtraveler3711

Жыл бұрын

@@rd24life Talking about the U.S. and first world problems. He said Dave knows what it’s like to lose everything in the U.S.. He knows how he got in a bad financial situation and reversed it. I have been to places like Soweto, Rio favelas,and remote areas of the Andes where people have no electricity and use an ox in place of tractor and transportation.. I doubt they are calling in.

@Bibleguy89-uu3nr

Жыл бұрын

The millions of people they’ve helped do though.

It’s like someone who’s been straight-edge their whole life becoming a substance abuse counselor telling you how much they can identify with where you’re coming from

In 2019 an average wage in my area was $45k/yr and an inexpensive home was sitting around $225k. Now wages average around $50k but a very basic, livable home is starting at around $350k now. This should not be the case but it is

@commonsense-og1gz

Жыл бұрын

is the area experiencing heavy growth?

Rachel is so smart! If I make 90k in Phoenix, I’ll just buy a house in Mexico for 100k. With the three hour commute each way, I’ll have so much more time to listen to her.

@mocheen4837

Жыл бұрын

Homes in Phoenix are a lot more reasonably priced than the Bay Area. An average sized 2,400 sq ft home in our neighborhood will run $2 million. My company was offering to relocate us to Phoenix and we could retain our San Francisco salaries. A few of my coworkers left the Bay Area. They said the standard of living improved since they were able to pay cash for a new home there and have several hundred thousand left over.

@JasmineAvril

Жыл бұрын

😅

@RHEYw

Жыл бұрын

@@mocheen4837 and that’s precisely why everyone in Phoenix is priced out.

@ianmcne5727

Жыл бұрын

You made me laugh, sir.

@HeatonResearch

Жыл бұрын

Good thing gas prices are... oh wait.

Does anyone actually believe Rachel and George struggled like the rest of us plebs. 🙄

@andrewsmith8715

Жыл бұрын

What do you mean? Rachel is only a few missed paychecks away from shaking a tin cup at the corner for change lol

@todd2456

Жыл бұрын

@Omar Zazzle No she didn't. Jealousy is unattractive, Omar.

@alrbredwall

Жыл бұрын

Also George doesn't come from money like Rachel. George and his wife started making good money and they just paid off their house. They had a mortgage too.

@MrJimmy3459

Жыл бұрын

@Omar Zazzle Dave would never by one of his kids a car like that for HS stop it

@genxx2724

Жыл бұрын

@@alrbredwall George drives a beat-up old car and everyone at Ramsey gives him a hard time.

In the Bay Area, the household income required to buy a median-priced home is $375K per year. Even six-digit double-income families cannot buy a home there. This has to crash and I'm happy to say that it has already started.

@ashdobbs

Жыл бұрын

if prices drop, I'll buy another

@mirabella2154

Жыл бұрын

Insane.

@PInk77W1

Жыл бұрын

Move

@OUTDOORS55

Жыл бұрын

Lol you can't afford to live there, move🤦‍♂️

@ezyryder11

Жыл бұрын

Yup, prices are going down but rates are high. But you can buy a home on less than $375k income, even in the Bay Area. Starter home or first home ≠ median home price, it’s usually below median.

Big fan of these guys usually. That being said, this old school mindset doesn’t apply anymore

@Spimmick

Жыл бұрын

The mindset still works. The attitude that "everyones been there" doesn't however

These two act like they are prophetic the way they are both amazed by their own comments…

The poor have no bread “ Rachel Antoinette said “Let them eat cake”

@suen5006

Жыл бұрын

Yeah, and what if you can't afford cake?

@carojames6776

Жыл бұрын

@@suen5006 RICE AND BEANS ????

Honestly the price of homes are slipping away from the grasp of first time buyers, especially in some of the more expensive states. 25 years ago homeownership would have been easier for a young adult.

@Bibleguy89-uu3nr

Жыл бұрын

My wife and I were looking at houses around 200k in Florida, even at that time they were selling the day they were listed for higher than asking. Now those same houses are easily 250-300k and this was a year and a half ago. Meanwhile rent for a 1 bedroom is 1300 and going up so there’s pretty much no reasonable option lol.

@jeretso

Жыл бұрын

Prices were cheap after the bubble of 08 but most were scared to buy.

@LuisLopez-nk7fj

Жыл бұрын

I'm in Cali regular home 6,7hundred minimum, e don't have a chance

@blackworldtraveler3711

Жыл бұрын

Not really. Young adults where I live are paying as low as $60k-$150k for a first/starter home with no issues. Even the states you think are more expensive have affordable areas.

@Daffodils2Daisies

Жыл бұрын

@@blackworldtraveler3711 Where?

Let's be honest the average American can no longer afford a home.

@tarawalton6778

Жыл бұрын

😥

Rachel should shut her mouth up on this, it’s offensive to normal working people to listen to her take on what she will never know about.

@alinatamashevich3354

Жыл бұрын

Jealousy is not a good look on you Raina. It is offensive to hear people complain about the rich.

@rainacherienne1010

Жыл бұрын

@@alinatamashevich3354 You don’t need to moralize anyone. Most of those who look privileged have issues behind the closed door and it’s nothing to be jealous about.

@alinatamashevich3354

Жыл бұрын

@@rainacherienne1010 Never did. Wealthy people have problems, money is not one of them.

Living in Utah it seems like even a small, two bedroom house built almost 100 years ago in a small town is so out of reach for anyone making 60k/year or less.

@blackworldtraveler3711

Жыл бұрын

You can always move elsewhere.

We are in a bubble. Only a fool would buy a house at these outrageous prices.

@MountainRancher

Жыл бұрын

I’ve heard that for 20 years

@blackworldtraveler3711

Жыл бұрын

Maybe where you live. Housing bubbles aren’t everywhere regardless of what the media says. No housing bubble where I live that I know of.

@ChrisFernaM

Жыл бұрын

@TheMrDudiness the joke is on you, they immigrated here in the 2000s, worked hard and with patience and constant postponing of immediate wants eventually they achieved it. That's one thing Americans should strive practice just as their older folks did, being content with what they had, buying only what they could afford, and learning to live with and without. Unlike some In our generation that want instant gratification without working for it. Having nice things is more gratifying when you know you straight out own. Hence I'm waiting for this crash like many others.

@katemiller7874

Жыл бұрын

Give me a break. We bought homes in the 80’s was wayy higher. We refinanced a year later. At least we had a home.

I feel bad for 1st time home buyers trying to buy a home. Even cheaper communing cities are expensive. Interests rates keep going up & up. Freezing people. Single income? it’s impossible, dual middle income is the minimum.

You use to be able to own a home with a modest income. The poor and low middle class are about to enter a housing crisis

@EJleon96

Жыл бұрын

Even a single person in the middle to upper middle class is likely going to struggle

@crashtestdummy1972

Жыл бұрын

I really think it just depends on where you live. Its sad that some states like CA are harder to get into affordable housing, there are still plenty of places around the country that have affordable housing on an average or below income. I think at that point the hard part would also be to make a move to those cheaper states.

@jbailey3390

Жыл бұрын

I’m 25 and I make 95th percentile of income for my age. I have super modest spending habits, and it will still take me years to be able to afford a down payment for even a small home or condo. The crazy part is I don’t even live in a super high cost of living area.

@reese85

Жыл бұрын

@@jbailey3390 you said you make good money, don’t live in a high cost area and can’t even afford a condo? Not sure how that’s possible

@SpicyKimchi-

Жыл бұрын

It’s not just about income, it’s about savings for a large down payment. I started working at 15 and saved, bought a house at 35 with 25% down to get my monthly at a reasonable range. You have to know at a young age you need to start saving bigger things in life.

Easy to say when your dad is worth 250 mill lol

@IrishFrank22

Жыл бұрын

Your dad is worth two cents 😂

Well to be honest depending on where you live with current prices, mortgage rates, and even more so if you follow Dave's 15 year rule without it being more that 25% of your total income. It is unreasonable for a large amount of people to own a home in the current climate. It's just plain math.

@triple_gem_shining

Жыл бұрын

Welcome to capitalism. Play the game or get played

@fauxbro1983

Жыл бұрын

Gonna have to revise the size of house you're looking at. That's reality. Not everyone needs a 2200 sq foot house.

@tonypreston7278

Жыл бұрын

@@fauxbro1983 dude, some people in California will never be able to afford a home.

@reese85

Жыл бұрын

@@fauxbro1983 2200 sq feet is not even big

@DBS472

Жыл бұрын

Own a home they want* may not have a kitchen island, be located in NYC, or have an oversized kitchen island. Might be a 60K piece of junk that needs elbow grease. HGTV is home social media

The problem is 1300 sq/ft "starter homes" are $400,000+. There are no homes available that are affordable.

@reese85

Жыл бұрын

It really does depend on the area and how far you willing to travel back and forth to work! Everywhere including nyc has areas about 30 mins to an hour away that’s dirt cheap

@naimafatimi4189

Жыл бұрын

There are many affordable homes in undesirable or less desirable areas. I'm not saying that works for everyone. Also it's good to consider manufactured homes or condos.

@ryand7713

Жыл бұрын

Location Location Location this is junk too

@ryand7713

Жыл бұрын

Maybe in Phoenix now yes

@ROCKETS2965

Жыл бұрын

Meanwhile, all of us in the Midwest are laughing at the people who talked trash for years lol. That low cost of living ain't so bad.

27 ? LoL. I slept in my car for 8yrs to pay child support. I rented until 58. Then I paid cash for my little home in Tx. Now I have no debt No rent no mortgage no bills and money in the bank. Life is good.

@jamesstanton3280

Жыл бұрын

Beast mode and a good man

@PInk77W1

Жыл бұрын

@@jamesstanton3280 yes I’m pretty blessed.

@tarawalton6778

Жыл бұрын

OUTSTANDING!!!🤗💯

Let's not ignore the fact there is a bigger gap between cost vs wages. costs on almost everything, even basic needs has risen so much but wages are barely up. it's much harder to get there and "pull on those bootstraps" isn't going to cut it for most of the people anymore.. even though you're part of the responsibility and at the end of the day it all falls on you where you spend your money. The scale is tipping more and more and A lot of people are going to fall off.

Sometimes I question why it’s so expensive to LIVE as humans.

@evr0.904

Жыл бұрын

Because what most people deserve and what they've actually earned are completely disconnected. Only in a first-world country can you complain about having every amenity imaginable and still complain.

@blackworldtraveler3711

Жыл бұрын

All about choices. I don’t have the marriage,divorce fleece,,child support,expenses,debt,over spending,FOMO,etc. most volunteer for.

@swolehas1794

Жыл бұрын

Because of our welfare system and fiat currency that is endlessly inflated. Want lower prices? Stop voting for communists

@evr0.904

Жыл бұрын

@@swolehas1794 Don't forget feminism and corrupt banking institutions.

@LuisLopez-nk7fj

Жыл бұрын

Greed sir nothing else

If I followed Dave’s mortgage advise I would not be able to afford a rundown studio apartment within a 2hr commute from my job. So now what, Rachel?

I really am enjoying George in the Ramsey personality collection. He works with Rachel, Dave, John, and Ken equally well. He was a smart choice and is well spoken, easy to listen to, and very friendly! I like this

We need to follow the advice of media articles. If we didn't blow all our money on Starbucks and avocado toast we could afford a house easily.

@PInk77W1

Жыл бұрын

That’s what I was thinking.

@blackworldtraveler3711

Жыл бұрын

That's why I started buying Starbucks under $2 in the late 90s. Seen what it was like in Seattle back then. Starbucks buy my coffee now.

I do think they help people in bad places but the Ramsey team is so far from reality.

@amireallythatgrumpy6508

Жыл бұрын

Even reality is out of touch with reality nowadays.

@eee4666

Жыл бұрын

Did you not hear of the STRUGGLE AND SACRIFICE in this clip?! Didn't you hear of all of the extra speaking engagements she had to attend more than likely on a private jet only to probably be put up in a measly four-star (all expenses paid as a write-off) hotel!

@rdbeaz

Жыл бұрын

They are only out to in rich themselves

@edmax2819

Жыл бұрын

@@eee4666 😂😂😂😂😂😂

@sobeliever1638

Жыл бұрын

Yeah don't listen to them and just complain🙄

A plot of land with a sea container to hold your stuff is way cheaper to have than a house.

It’s easy for Cruze to say deal with it when Daddy bought her house.

@IrishFrank22

Жыл бұрын

Take it your daddy was poor?

They didn't really answer the question. There is probably no answer.

Rachel being Ramsey😂

I lived in Seattle and Portland and loved it. But I didn’t see a future for me to buy a house. So I transferred to a low cost fly over state. My house was built in 2017 and was 172. I love it. So happy. Life is easy too because there isn’t so much competition.

@LittleMopeHead

Жыл бұрын

Which state?

@blackworldtraveler3711

Жыл бұрын

@@LittleMopeHead Almost every state in the U.S. if you do your research.

@jeretso

Жыл бұрын

Good Job! I bought for 150k during the pandemic.

@cheesypoofs6256

Жыл бұрын

@@LittleMopeHead I don’t want to say I don’t want my state to grow that much and I don’t want to dox myself. But when I was looking Missouri had similar priced houses.

These guys have literally never struggled

@dervishmichaels9147

Жыл бұрын

Being jealous helps you achieving your goals how exactly?

@PInk77W1

Жыл бұрын

Because her dad taught her the right way from day one

@alinatamashevich3354

Жыл бұрын

@alexguy96, did you miss the part where Dave was bankrupt? It took him years to build his empire, and his kids were little during this time. Your comment is ignorant.

@blackworldtraveler3711

Жыл бұрын

@@alinatamashevich3354 Yeah I remember hearing him on radio explaining that period of his life in the 90s while driving home from work. What a mess.

@alinatamashevich3354

Жыл бұрын

@@blackworldtraveler3711 I cannot imagine owing close to $4M and no way of paying it back.

In the Midwest, houses can be 350k with cracked foundations, 100k of deferred maintenance, and potentially in a town with only 2000 people living there. Oh and someone died in it, thus the sale. The price to quality to get a house is no comparison to rent. Math doesn’t care and I don’t care to overpay on a project. I think everyone is just waiting to hear Ramsey team say, “don’t buy a house, save money.”

@theonlyconformist

Жыл бұрын

I think Dave's advice that if you CAN buy one you should, and just refinance if interest rates drop, but if you're a first time buyer, good effing luck these days. This is a nightmare

The problem that I have is with the interest rate being so high. For 300k you can't buying anything in decent shape in Oregon.

@SpicyKimchi-

Жыл бұрын

Maybe a condo or townhouse, probably not a single family. Maybe in one of those run down towns in between Portland and Bend that no one really stops in.

@caydenthompson126

Жыл бұрын

@@SpicyKimchi- those are pretty far away lol. Long commute

@caydenthompson126

Жыл бұрын

Can't even buy anything for $450k that is decent in Oregon

@earth20331

Жыл бұрын

How much are single family homes going for in Oregon?

The house that I want isn't necessarily extravagant. Just something small and suited to my budget. It doesn't seem to exist here in NY

@TheLivedeath

Жыл бұрын

Go to the rural areas and you can find one

@LucasFernandez-fk8se

Жыл бұрын

@@TheLivedeathwhat about their job tho? Seriously that’s not a solution. While i agree not everyone should expect to live in LA or SF or NYC, housing in previously moderate priced metros which encompass like 250 million people in the US now are out of reach for people.

This is also why we have to continue to build the wealth and find our tribe as well, being with purpose driven people who want you to win, challenging you to be better, and loving and supporting you to be at your best and transforming lives. Dropshipping (which is awesome!) Drone piloting, copywriting.. Find your way, you can do this! Much love and blessings always! You all are created to do great things! Never give up on your dreams or what you stand for!

40 years ago the median home price was 3x median income. Today the median home is 8x median income We just "WANT" an affordable/ reasonable house that an average person can buy.

@Bertuzz84

Жыл бұрын

That doesn't matter, Dave bought houses for 1-2 year salaries 40 years ago. Housing costing 8 year salaries is no excuse. Just move if you can't afford the 15 year fixed mortgage. If that means moving to Mexico or Zimbabwe, or into a shed or gagage box who cares. Following the exact plan is what matters.

Great information

If there is one thing I agreed with in this video is that someone shouldn't go take out a mortgage if they don't have an emergency fund and the payment is more than 25% of net income. I agree it is better to rent if you cannot afford a house.

OMG the struggles that her and her husband "Winston" must have endured...

@amireallythatgrumpy6508

Жыл бұрын

The same could be said of ANYone from the USA

@reesercliff

Жыл бұрын

I know they weren't able to buy a new Tesla that year, so sad 😢

@RachelDee

Жыл бұрын

She's still had to make the sacrifices to travel for work and be away from her kids.

Excellent episode!

Great advice here

Buy a small home in an area where you can afford. Build equity, use the equity to buy a bigger and better home.

@dogguy8603

Жыл бұрын

Lol small homes cost just as much as big homes

@ezyryder11

Жыл бұрын

Yup, your starter home doesn’t have to be your forever home.

@dogguy8603

Жыл бұрын

@@ezyryder11 there are no starter homes anymore

Rachel is a kid...no rigors as her father has had! I'll take dads advice not hers!

20’s and 30’s lol. I’m 46 and retired from my first career and working the second, can’t even look at a house in the neighborhood we live in. Housing prices haven’t softened. They’re firm and we’ve lost 25% purchasing power with interest rates.

Because it is, when 25-30% of the housing supply is bought by corporate funds..

@lisaboland9225

Жыл бұрын

Yep and then they rent them at an expensive rate

@alinatamashevich3354

Жыл бұрын

@@lisaboland9225 Wow, like every investor does. That is crazy talk.

@NaNa-lt1po

Жыл бұрын

@@alinatamashevich3354 crazy, but a fact.. a crazy fact

@alinatamashevich3354

Жыл бұрын

@@NaNa-lt1po Crazy that some people want to make a profit

The house prices now are crazy. Here in the UK I filled out a Mortgage quotation a few days ago and for a £200K house with a £15K deposit over 20 years the bank were asking for £1400 a month. That ain’t happening 🤬

American homes are massive, even compared to American standards. American homes were less than 1000sq ft in the 1950s, but have ballooned to 2500sq ft. Buy some land, build a small home. It doesn't have to be tiny, but considering the rising cost of everything from materials to utilities, people need to adjust their expectations to reflect the realities of today.

@hvaball150

Жыл бұрын

add in you can buy a 1500sqft 3/2 for 100k or 150k in MANY areas of America. Tulsa is one simple example. probably cheaper than building a house.

@dinospumoni8860

Жыл бұрын

Not true. My house was built in 1956 and it’s 1800sqft.

@yamamancha

Жыл бұрын

@@hvaball150 Yeah, it seems like people get fixated on location, size, and amenities, and buy into the oversell. Same thing goes for college and cars; the seller convinces the buyer that more debt is the gateway to all the bells and whistles. With houses, a well-design 1000 to 1200sq ft home is more than big enough for most families.

@yamamancha

Жыл бұрын

@@dinospumoni8860 average home size...

@blackworldtraveler3711

Жыл бұрын

@@hvaball150 Yup. They are everywhere.

Ask Santa Claus to increase interest rates and keep them high as long as possible, the house prices will eventually drop down :) You won't buy it without cash but you will see low prices.

I remember when Dave said that he paid off his kids house as long as they agreed not to borrow money.

@theleslieadventures7246

Жыл бұрын

What really? Wow People like this should not give advice on something they know nothing about. She never got a mortgage she should not give advice.

@sobeliever1638

Жыл бұрын

When? Been watching for years and never heard that

@glennz6686

Жыл бұрын

I didn't get any help from my parents when I bought my 1st home

In California you have to make $200k and have $100k in cash to afford a one bedroom condo according to the 25% income on a 15 year mortgage advice.

@unfairsanic5089

Жыл бұрын

If you are having a hard time living in your state, then move

@Jay-om8gr

Жыл бұрын

Exactly

@evr0.904

Жыл бұрын

First of all, why would you live in California? Second of all, $200k isn't an unrealistic salary in California. If you're not going to acquire the skills that allow you to live in California, get out!

@dogguy8603

Жыл бұрын

@@unfairsanic5089 show me where someone can move where they make the same amount as their california salary or pay?

@dogguy8603

Жыл бұрын

@@evr0.904 so you think people choose where they are born? And yes 200k is not a common salary what in the world made you think that? And the skills to live in california require being a boomer who bought a house in the 70s for 100 bucks and get ridiculously lucky. Or be born rich

😂I couldn’t listen to the end The struggle was real

It is impossible many places. Moving doesn't always make sense. Here you can't just drive another 20 minutes because it's not any less, but a 1 bedroom condo is beyond what a lot of people can even do.

That tiktok was brilliant 😂 he nailed the sentiment perfectly

Well I guess I’ll rent forever

@blackworldtraveler3711

Жыл бұрын

Many people rent all their lives and do fine especially in areas of rent control. Have a sister that always rented and have no issue. I worked with a guy for over 20 years that rented a house and raised his family doing it but it’s was not a big deal when monthly rent is equal to three days pay. He is still a 401k millionaire and debt free. I must admit though there are very nice rental apartments/condos where I live. Has the island kitchen with granite,nice stainless steel appliances,dual sinks,separate tub/shower,washer/dryer,etc. between $1500 and $2k/mo.. Even gated with your own garage.

A big house is also more expensive to maintain and furnish. My first house I ate a lot of ramen and found roomates to help pay the bills.

But waiting until getting a downpayment of 20% also has it's risks. I wish I bought when I had around 10%, in 2019. It increased so much after that.

Rent prices have also gone up about 25%!

I stayed at home at my mom's house until i could deposit 250k on a 330k house and now I'm chilling. 🙃

@peruvianheat2053

Жыл бұрын

Approx how many years did it take you to save 250k just curious?

@PInk77W1

Жыл бұрын

U smart. I paid rent till 58. Then retired and bought a small home cash for $23k in the middle of nowhere in Tx.

@alaydrus89

Жыл бұрын

@@PInk77W1 I saw too many people stuck in the rent trap and from age 23 - 28, I could not get ahead because of that. Once i figured out it's not what you make it's what you could put away and i made a conscious decision that i didn't want to be poor, i learnt to lean into frugality and take advantage of any privelege I had.

@joejohn.

Жыл бұрын

@@alaydrus89 You saved 250k from age 23 to 28?

@alaydrus89

Жыл бұрын

@@joejohn. No from 24 to 32.

Yup, I went through plenty of houses, before I got to the one I "wanted". I pass by those places now, with some level disgust, but when I lived there, it was with pride, and I improved each one, as I lived there, making the value improve.Never even realized they were in "undesirable" neighbourhoods as I lived there. Sure, there were industrial smells and sounds, sure, there were folks missing body parts, but those places were my home!

@enricopallazzo3244

Жыл бұрын

Lol industrial smells and missing limbs

@evr0.904

Жыл бұрын

@@enricopallazzo3244 They must not have included that on the brochure.

*Laughs in Bay Area prices*

The UK a lot of young first time buyers get their down payments from their parents/grand parents because they just can't afford it that's the only chance they can have of getting on the property ladder. I will be doing the same for my child when the time comes.

And other expenses usually happen when you are about to update that kitchen or floors (water heater replacement, A/C, tree removals, washer/dryer break… car breaks).

It is a math problem. But there’s a second problem which we as a society need to contemplate: do we want to promote a culture in which people in their 20s and 30s have significantly less of an opportunity to obtain the same standard of living as previous generations? What type of negative impact and resentment will that create and what is the fallout from that? I have family members who are middle middle to middle upper income earners who cannot afford what would have historically been considered a starter home. I don’t think that bodes well for the country and I think it exacerbates class and generational warfare. It’s not okay and needs to be addressed.

“You need to rent till you can pay for a house in cash” - Dave “I have tons of rental properties” - also Dave

@amireallythatgrumpy6508

Жыл бұрын

He was able to pay for them in cash...

@GMDOCNICE

Жыл бұрын

Yes. The duality.

@OUTDOORS55

Жыл бұрын

Except dave has never said that🤦‍♂️

When I stopped worrying about owning a home my life got infinitely better, videogames play just as well in an apartment as they do in a home

@clairet5636

Жыл бұрын

The frustrating thing is when you want to do more than play video games.

@reesercliff

Жыл бұрын

@@clairet5636 That's gotta be rough for you, sending thoughts and prayers

@jasonh8212

Жыл бұрын

@@reesercliff😂😂😂

@theonlyconformist

Жыл бұрын

@@omarzazzle That's not true at all given how much interest rates have risen.

You’re suppose to be happy about not owning anything I thought.

@BeastorFail

Жыл бұрын

Relax Klaus Schuab

@amireallythatgrumpy6508

Жыл бұрын

Just like about 90 percent of people who ever lived...

@alinatamashevich3354

Жыл бұрын

And eat bugs.

@BeastorFail

Жыл бұрын

@@alinatamashevich3354 Serbian?

Loving the dark hair on you Rachel!!! ✨

Anyone buying a house right now that can afford to wait, is oblivious to what's going on from a macro economics perspective...

@elizabethblane201

Жыл бұрын

The Ramsey team are most delusional of all.

@amireallythatgrumpy6508

Жыл бұрын

Anybody in that position can afford to not pay attention.

So your advice is to spend more money per month on Rent or buy a house further away that will cost you more in transport further increasing your fuel, upkeep, and time away from family?

@jimmymcgill6778

Жыл бұрын

It's not that much more in gas. What, just a few buck more?

@naimafatimi4189

Жыл бұрын

Ideally you can find a new job close to the new home. But yes, those are two main choices. It's the reality of the situation. If you can't afford to live where you are from, you have to make some hard decisions.

@TheCastedone

Жыл бұрын

They don't have an answer

@dinospumoni8860

Жыл бұрын

I think the advice is mainly relocate where you can afford to live.

@CheetahNuggs

Жыл бұрын

Bud what are you driving where fuel and upkeep costs eat the value of living 30 min away from work

In my state a decent none run down house is 500k it's BS. Rent is the price of a mortgage now

@dinospumoni8860

Жыл бұрын

I hate to say it but then you should move.

@sk8ter4fun

Жыл бұрын

@@dinospumoni8860 I want to. My wife wants to stay though because of family. She wants to buy property about an hour away and build a modular home

@unfairsanic5089

Жыл бұрын

@@sk8ter4fun sounds like a bad idea lolz

@joyaustin6581

Жыл бұрын

In my area 100k can get you something small but decent, 200k gets a very good neighborhood and 500k gets you a luxury custom house.

@ashdobbs

Жыл бұрын

@@joyaustin6581 What state is that Joy?

Okay, I did some math. The average home price in my area (kinda ghetto) is $400K and that is for a 1300 sqft home that is pretty old and thrashed. By following Ramsey's rules of a 15 year mortgage that is no more than 1/4 of your take home pay, I would need a take home pay of $11,976 a month to afford that. I make about 75k a year and that's with working my a$$ off with overtime and I don't even have any debt. I'm sorry, but unless I become a surgeon, I will never be able to save enough for a house in this market. It's not about not being able to buy your "dream home", we just want a house period.

@Bertuzz84

Жыл бұрын

Yeah i did the math as well. We can afford our house very easily. But according to his math we would have been priced out. The thing is that Dave lives in an area with exceptionally affordable houses for peoples incomes. And his advice is based on a era where houses were even probably twice as affordable as they are today. Where i live houses are twice as expensive as where Dave lives, while incomes are almost two thirds. Thank that -0.5% central bank interest for years, we could get 1-2% mortgages.

Relatedly, a trend I see in Baltimore is that homeowners are building onto their own homes, rather than buying newer or bigger homes; that has to be because housing prices are so out of control.

Nope, TONS of homes here in Wisconsin for 100k which I 1000% would buy in a heartbeat over being house poor and working 60+ hrs a week....life is alot easier when you don't give a you know what about your "social status"

@EJleon96

Жыл бұрын

It’s also easier when you live somewhere you really want to live in

@tfries72

Жыл бұрын

Correct here in Iowa you can find homes for that price maybe a little more depending driving distance to bigger towns or cities with employment opportunities. It’s about sacrifice if you cannot afford the place you live you can leave I know that must be hard for people but it is a great option.

@blackworldtraveler3711

Жыл бұрын

@@EJleon96 From what I have been seeing since the 90s is living in a home you can't truly afford isn't easy at all. Many of you prefer to be boomers in disguise.

@Daffodils2Daisies

Жыл бұрын

I'm in Waukesha county. None down here, unless it's the middle of Milwaukee where you also may be murdered.

@joeplem5329

Жыл бұрын

@Rachel’s Garden I'm in Sussex and yes there's nothing in Waukesha for that price but an hour north is a different story, just have to be OK living in the sticks

Nice Canadian tuxedo, George! 👍

I think to do a payment that is 1/4 of take home pay on a probably below median place in my area (400K), I would to put down 240K +

These TWO together are GREAT!! I love the youthful energy!

Get a mortgage. On a thirty year. When you can finally afford a house you want, the price would have went up.

@tristan2332

Жыл бұрын

Also you can refinance, the rate will go down at some point.

@amireallythatgrumpy6508

Жыл бұрын

They're not going to be able to afford one this side of 2040.

Impossible if you follow Ramsey's rules

So i am 43 years old, i bought my home 19 years ago at 24. To be fair, houses were not affordable to 20 something's then either. The banks were just being unethical, throwing money at us leading to eventual massive foreclosures. The housing market has not been good for several decades.

This is an important subject to discuss

A 15 year mortgage was always a crazy idea for most people. Now with interest rates high it's insane to take a 15 year mortgage .Because most borrowers cant afford the mortgage. Take the 30 year and refi Hopefully to a 20 year in a couple of years.

@amireallythatgrumpy6508

Жыл бұрын

That indicates most borrowers cannot afford to own a home.

@ashdobbs

Жыл бұрын

@@amireallythatgrumpy6508 not everyone should be able to buy a house.

@rainacherienne1010

Жыл бұрын

@@ashdobbs Not everyone but every person working full time job should be able to afford a home to live in.

@amireallythatgrumpy6508

Жыл бұрын

@@ashdobbs I agree with that.

In Japan, it’s more like buying a car. It might be a little less than the US, but the problem is real estate doesn’t appreciate. Like a car, it depreciates.

Live in your parent’s basement and save save save!

@deb9806

Жыл бұрын

Hey my son lived home, drove to school to get masters, worked at night, helped me with some chores and could buy a home at 30. I didn't mind, he wasn't a slouch and i found out most of his friends did the same thing. My daughter couldn't live home but he found being so busy, it wasn't hard.

@LAZERZ-OP

Жыл бұрын

That's exactly what I'm doing. Paying off my student loans then saving the rest for a 20 percent down payment on a starter home. Thankful to have parents that let me stay with them and save. It's such a blessing and huge advantage

@deb9806

Жыл бұрын

@@LAZERZ-OP Good luck, it's a maturity many don't have to do that. Dave might say move out but his kids got very good jobs at his company. lol I know my daughter needed space but her sister has quite a bit saved doing same thing. Rents are so high and I don't want my kids in really bad area or driving an hour to work to find a cheaper rent.

@LAZERZ-OP

Жыл бұрын

@@deb9806 It's quite an advantage to say the least. Best of luck to your kids and thanks for being a great parent!

@r3lativ3lyd3lib3r8

Жыл бұрын

Kinda hard for those who don't have good relationships with their parents. I love my parents but my dad is very controlling and if I had to keep living in that house after college I would've gone insane. Others are in the same boat.

Rachel, your dad is almost a billionaire...

@Wealth_Wisdom_Discernment

Жыл бұрын

@Mr. Wick you’re wrong, over 700 million. Watch graham Stephan’s video

@jimmymcgill6778

Жыл бұрын

He is far off.

@jimmymcgill6778

Жыл бұрын

@@Wealth_Wisdom_Discernment Graham does clickbait. He may know a thing or two. But his titles are clickbait. Dave said so himself, his net worth is 200m.

@amireallythatgrumpy6508

Жыл бұрын

@@jimmymcgill6778 No he didn't. He said $700 million.

@jimmymcgill6778

Жыл бұрын

@@amireallythatgrumpy6508 Dave have said anywhere from 200m to 250m. Graham is the only one that said 700m.

I feel l like they are being wise because many people are talking with feelings rather than facts. Facts are that it is hard to own a place and some people have to be ok with just renting for many years before buying their home. Both of my parents did that and my father is doing that again in his late fifties. It’s not fun but it’s something we need to accept.

My sister is an E4 in the Air Force and just closed on a house. She isn’t wealthy, it CAN be done.

says Rachel who's father is worth 700 million and published books through her dads company that is promoted to best selling status. Nepotism is awesome

@alinatamashevich3354

Жыл бұрын

Jealousy is not a good look for you.

It took me an entire year of searching to find a house that I wanted and fit my budget. Too many people want instant gratification.

@blackworldtraveler3711

Жыл бұрын

Same here with my first home.. There was no internet in 93 but I grab the weekly real estate guides from the grocery store to research and keep and eye on the ones I liked. Patiently watched the home I decided to buy drop in price for months so instead of $85k a bought it for $69k. Always wanted a beach home and fantasized viewing them on Zillow all the time for hours. Dad told me as a child to just keep saving/investing,be patient and wait for opportunities so I did. Then unexpectedly the Great Recession /housing crash happened and all of a sudden I could afford to buy a second home. After searching and looking at around 100 homes in four states I bought a $560k beach home for $240k cash in Florida. Heck even if you save/invest and still can’t afford a home you’re still in a better place with options compared to someone broke and in debt with no savings/investments.

@ericeandco

Жыл бұрын

I wouldn’t say they want instant gratification. Working a couple of jobs and still not making enough to qualify for a mortgage to get a small home somewhat close to work is the reality. It’s hardly worth working and paying taxes.

In California $130k a year and 30% of my monthly take home pay netted me 650 sq ft

@PInk77W1

Жыл бұрын

So u don’t live in Taft CA

@ezyryder11

Жыл бұрын

Congrats on getting on the property ladder 🙂 can always use the equity to upgrade later

You need a large amount of down to make it work, that means waiting to buy in your 30’s with a good savings and established career & salary. But it’s possible.

Rachel did not get it or listen.

Not everyone makes average income of 70k a year per person….

7:39 THIS IS TRUE!

Townhomes are not a cheaper option anymore.

Prices are dropping in our area