chit chat GRWM: let's talk homeownership 🙇🏻‍♀️ 

Hi Aja, long time viewer but never commented. I wanted to share the story of how my mom was able to build financial growth through home ownership. I grew up in a single parent low income household - my mom was able to purchase a home when i was a younger in an area that luckily appreciated in value over the years. We lived in that home for 10+ years. By the time i entered university, my mom was still making mortgage payments on that home. She decided to sell that house and move a little bit further out to a smaller home. The profit that she's made on the first home allowed her to sell the house and purchase this new home full in cash. We lived in this home for a few years and again, luckily, the home appreciated overtime. She then made the decision to purchase a home even further north and bigger. She took on a mortgage for this home but again the profit she made from the second home, allowed her for a smaller mortgage on this home, given it's further in location. She currently lives in this home and this home has luckily appreciated, almost double in price. She's since paid off the mortgage on this home and used the equity in this home to purchase an investment property (smaller) even further north. It's currently being rented out. She is close to retirement so at the time of retirement, her plans are to sell this home she's currently living in, use the profit to pay off the remainder of the mortgage of this investment property and move there. She will have had made a sizable profit from this current home she's living in to help her with retirement. The plan my mom has is to pass this investment property which will be her retirement home down to me as generational wealth. Our family has been quite lucky with how the housing market has been and i do credit my mom for being very frugal and a savvy saver to be able to make the decisions she did.

I think home ownership can be a good or bad thing depending on location. We paid off our house last year and we have peace of mind. We know we’ll have a place to live when we’re old and our kids can enjoy the money from appreciation over time. Our expenses are mostly fixed, we just have to work to pay utility bills and groceries. What we make extra can go yo investments and anything else we like.

Aja, your thoughts are spot-on! Owning a home is not the "right" choice for everyone. Not to mention, you and your partner work in entertainment/media, and it's likely short-term opportunities will present themselves to move overseas, etc. It makes sense to rent and stay flexible. Do what works for you 💜

I used to think home ownership was the end-all be-all in adult finances. Now that my husband and I live in LA, we've changed our tune. There are NO guarantees that home ownership builds wealth, in fact, it can really hurt financially if the circumstances aren't perfect. There are lots of other ways to build financial stability than through home equity!! I think you're on the right track here. 😊

I think people say that “owning a home leads to generational wealth” is because home ownership stabilizes your housing expenses, as well as the “lifestyle” control of owning a home across extended family and generations. It’s a safety net of that ensures there’s always an extra room/bed for anyone who needs it (death, divorce, unemployment, illness, disability etc). And for many typical families, once an homeowner dies (assuming the home is paid for) that’s a bit of “start up cash” for those two generations down the line. I understand why you don’t want to own a home, but I love owning. The emotional peace is worth it. Granted I have a two flat and my Mom and disabled sister live in the other unit. Makes caregiving easier for ME- again lifestyle. Having to drive across the city to care for them, or having us in one space would just be hard on me (time and financially). Also I can have 80lbs dog and two cats and no one cares! I’m proudly childfree- no partner so I’m not a DINK.

I really appreciated this video and hearing your perspective 💕 as an Asian American, my parents definitely want me to fulfill the “American dream” and buy a home but in this economy, in Los Angeles, it just isn’t as worth it anymore ):

Thank you for staying true and not pushing endless products !

A lot of interesting points made in this video, I really enjoyed it especially as I’m figuring this all out myself 😂 Also the end LOL

I think the pros and cons of ownership need to be discussed, so this video is a great topic. The concept of buying over renting is pushed in such a positive light, and like everything in life, there are grey areas. We were not ready to buy in 2019, but we were able to private purchase the condo we were renting. This worked for us since the rent was slightly more than the mortgage, taxes, insurance and strata fees. We knew we were going to stay in the area for while so this made sense. We also are able to handle the rate increases and put more down overtime since we are below our means. However, people who are going above and beyond their means solely to own concerns me. Overall renting isn't a waste of money; if you can't live with your parents, you need to live somewhere, not to mention the added flexibility.

I love how I was so excited to see the new hairstyle and not five seconds later: "things went terribly wrong" 😂

Im 26 and making good money and homeownership is the next-step-expectations. But I don’t want one! I only left my home city of NYC two years ago, LA isn’t my last stop and homes are going to stop me in my tracks for a while. I’m not ready to commit!! With that said! I see my coworkers who are 10+ years older than me and they have regrets. Soooo I recently decided that I will start saving/investing for a home that I don’t want. Only because 31-36 year old me might want one and she deserves one! BUT! if she doesn’t she’ll be 40,000$ richer probably!

I follow Ramit Sethi and he was the first financial author I heard speaking about how owning a home is not for everyone and that renting is perfectly acceptable. It made me feel so much better about myself because I felt like at my age I should be owning a home.

Aja… when you said “domatrix”, i cannot unsee it anymore. LOL!! I enjoyed your video! ❤

If you own your home outright and pass it down to your kids, you’re providing them an asset they can either sell for profit or rent and receive cash flow, which would mean passing down generational wealth.

The purpose of the home is to have it paid off and then like anything else there is maintenance. But when your home is paid for you have a guaranteed place to live when you can no longer work. Homes also tend to appreciate over time. So an asset. But home ownership is good for the majority of people who will likely be on a fixed income after retirement. If still renting at retirement you’d have to have enough income to afford rent and if rent prices increase during your retirement. Factor in another big expense which is healthcare. If you have a lot of healthcare expenses later in retirement you’d definitely want to have your home paid for. I think looking CA for a home would be frustrating. So perhaps look in another state that is cheaper if possible. ☺️

It just takes ONE person to mess up generational wealth!! My bf and I had this conversation a few weeks ago. We both have an aunt or uncle in the family who destroyed the family wealth due to their bad habits and extreme debt. My accountant's only child turned out to not be a great person, and has told him that he won't be getting any money once he (my accountant) passes away, so my accountant is using the money to travel around the US as he approaches retirement. We both believe in spending the money that we earn while we are still alive. It's also important for kids to understand work ethic and being financially independent I'm also a believer in buying a house that generates income. I'm saving for my first house and it will be an investment property. Sadly my bf doesn't want to rent out part of the house we buy together, so no business writeoffs there. But to have something in my name that generates income, in case my bf and I split or I lose my job, is great peace of mind

I literally could never imagine the stress of waiting for a paycheck. Do what you gotta do girl. Also that bit about "generational wealth" seems like bullshit because my family has nothing but debt and normal ass houses lol

The prices of homes right now is crazy!!!! We built our home in 2010 and are sooo grateful for homeownership💖 We live in Hawaii where housing has always been crazy, but now it’s like extra extra!! In today’s economy we would not be able to afford rent here. It’s more than double the cost of our mortgage. If we didn’t own our home and have to rent, we’d probably have to move in with our parents or out of state.

Rents will almost always increase over time, but your mortgage will always stay the same or decrease (if you refinance) AND your property will almost always appreciate over time (with a few exceptions ofc). I think you're idea of buying a duplex and renting out the other side is a great way to build wealth since someone is paying for all or a portion of your mortgage. In any event, I am pro-home ownership. The benefits may not be immediately apparent but become obvious over time (just look at home price history over time).

Home ownership CAN but doesn't always lead to generational wealth. Way back when homes were more affordable that absolutely was a major vehicle of wealth building for the middle class but now a days you need to really do your due diligence when buying property if the goal is to build wealth; current vs expected market conditions, location, condition, amount of time you plan to own, etc. just to name a few. Many major markets no longer make sense to buy in because as you pointed out, companies and the already wealthy have driven prices up too much to build wealth by buying property as an individual or couple. There are a few secondary and tertiary markets where you can still make significant money if you're investment minded but the prospect of building generational wealth passively is almost non-existent at the point in time but it definitely was more possible in the past. And of course, you should not buy when prices are inflated or if you're not prepared for the cost of maintenance.

As far as second homes I'll say anecdotally that it's not nearly as simple as people on the internet makes it seem. My husband has a home from before he met me and he basically breaks even when you factor in expenses, which people always vastly underestimate. And it's not as simple as just charging more in rent, mortgages tend to be far higher than rents for equivalent homes, I recommend looking at the mortgage to rent ratios in your area. Our financial advisor is constantly telling him to get rid of it, tbh, but we have good long-term tenants and we are hoping maybe one day we can have passive income from it. But it's been, no joke, 15 years with many more to go before the mortgage is paid off. I think passive income works with both good research but also dumb luck.

Buying our house a few years back has saved us thousands of dollars. We couldn't afford to live in our city if we hadn't because rent prices are over double the cost of our mortgage and half the space. The value of our house has doubled since then. So, if we wanted to go back to renting we definitely could and have a nice chunk of cash in our pockets. I view a mortgage as locking in your "rent" for the next 30 years. Yes, there are maintenance costs, but there are ways to lower risk and costs along the way. I feel like the cost of maintenance and increased property taxes is way less over time than the rising rent prices.

Aja, I agree with all the things you said. I guess for my parents and my partner's parents generation, they always saw home ownership as their first investment. There's also FOMO and pressure to own a house that allows one to have creative freedom for a "dream" home.

yes please let's talk about finances! home ownership truly has to be about timing for your own personal agenda and the market. My parent's purchased their home back in 2020 when interest rates were low (I'm talking 3%). The intention with that purchase is that it would be their retirement home so they wouldn't have to worry about rent once they retire. Also the market value for that home has since gone up to cover the remaining of the mortgage (if they choose to sell). I understand that there will still be taxes however, their county provides exemption for seniors. It's just the peace of mind knowing their mortgage payment is set (they have a fixed rate) compared to the ever increasing rent in their area. They were fortunate to have the down payment available to seize the opportunity. Personally as a young professional, real estate investment would be something I would be interested as an asset. Traditional stocks are an option but are not providing the same yield as before. As someone who's trying to build an investment portfolio that can provide enough income to live off, real estate is truly an attractive option. If I were to purchase a home for me to live in, it would be to pool my money into an asset to grow and then resell for profit.

Yeah I agree Aja, individual buyers are not the cause of the price hikes. Check around and you’ll see the common realty companies selling or renting out homes in the neighborhood. There are only two ways to make money in housing, become a landlord or sell the property. Owning a home is not profitable until it is sold. And so many factors affect that profitability. I find it so interesting how the idea of homeownership is still the goal after so many decades of change in lifestyle, values, economy etc.

I think it’s totally fine to own rental properties to increase you monthly income, especially if you don’t have a ton of money. I believe that your personal home is something you enjoy, not so much an investment. I do believe that owning a home can be a good financial decision or a complete curse. It just depends if you can keep up with the rest of the unforeseen expenses.

My husband and I sold our house, our home for over 30 years. We bought it to live in, not as an investment. But when we sold it we could buy both an apartment in town, a house in the most beautiful place and be debt free. So if you know where you want to live, raise you kids etc I think buying a house you are planning to live in for many years is really good. But if you are just buying to make a profit in a short time then it’s a totally different ballgame. The shorter the term is the more vulnerable you are to marlets ups and downs but if you buy for a long term then the market will have little or no affekt. So renting can be a preferable option or buying depending on what your plans are!

Home ownership isn't for everyone. If you purchase a home in an area that is booming or about to boom. selling that property in 5, 10 or even 30 years later COULD land you a pretty penny. That would give you a version of a passive investment, and money later on. The problem is that you can't time the market or future market. In your position, I would think of making a purchase in Houston. It probably makes more financial sense now than purchasing in L.A. Especially since you already have money "in the bank" to make a large dent towards the purchase. If you didn't have that money, and made the Houston purchase, it could put you in financial strain owning in Houston, and renting in L.A.

I've been watching you for years (so happy to see how far you have come) - but just thought I would comment to say you were hilarious in this video 😂 Stay blessed 😊

My partner and I are just about to close on our very first home - a little apartment in Vancouver BC Canada! We aren't big investors in stocks, etc. so this was a decision we feel comfortable and happy about. I'd love to someday purchase a HOUSE but I have no idea how we're gonna do it with the housing market here. Hoping our incomes continue to increase and our expenses stay the same or decrease!

You could look for homes with a casita in the back or zoned to do so. You could rent it out to someone year round or Airbnb it. If you do Airbnb, you could use it for family when they come in from out of town where they can have there own space. It might have to be outside the LA area, but it is a popular thing in Phoenix and Scottsdale.

I think the reality is that homeownership is not for everyone, depending on their market/location, but it's still a good option for many people. If you live in an area with super cheap rents and it's stable, you could potentially rent a place and then take the leftover income and invest it. That would be a reasonable option. But if you live in state or an area with limited affordable housing (CA, Vegas, FL, HI, MA, VT, etc) or any place the rental market rises over the next 5-10+ years, you are probably better off purchasing a home because the alternative is potentially being one rent raise away from losing your home. If you literally cannot afford a home, then the options are 1. rent until you're priced out, or 2. move to a more affordable location. I think you are correct in saying around 7:55 that the way to accumulated generational wealth is via passive income, but a home IS actually generating income for you simply because you would otherwise just be paying rent to someone else. Sure, you can generate a *higher amount* of money by ALSO renting out rooms/duplexs, etc of the property you own, but living in it is ultimately accumulating wealth. A penny saved is a penny earned 😉

idk why people get so offended lol. I totally agree with you. I think owning a home will be another thing (like college) we are told over and over again is essential to succeed in life. and Im only 25 and know nothing, but I have a feeling in my gut that that's not the case, for me at least.

Owning a home TOTALLY builds generational wealth!! My husband and I had an affordable home to buy in a crazy market because we bought from family. Saved us hundreds of thousands of dollars compared to purchasing at market price and gave us a head start.

My fiance is from Togo and the idea of homeownership in America is not his ideal. In Togo homes stay in the family for GENERATIONS. He grew up in one of the four homes his grandad built and they now rent that said home out. Once you buy your land, which typically you have to pay cash for through sometimes they do 2 or 3 payments of it, you do not pay anything else on your land. You can have a tent or a 5 bedroom house and it is yours. While not having property taxes does have it's cons the fact that when you retire you could lose your house from the drop of income is very heart breaking. Also you pay cash over there as you build your house as well typically so you do not owe so the stress of possibly losing the house and being homeless is not a stress that you have if the worse comes and you lose your job. Also yes the big business/bank benefit of it in America general is sickening and making buying affordable and available harder. Also the rent raise and price increase is ridiculous! Not it being small owners just trying to make a little passive that care about their tenats. In togo the longer you stay a tenat you don't get as much or even a price increase because no property tax, you rarely see people's things thrown outside if they are evicted there is respect up to a point of course but much more flexibility than these big business provide.

What you're referring to is 'rentvesting' where you're renting in a place you want to live and buying where you can afford. I think it's a great way to invest because you still get exposure to the property market while maintaining the lifestyle that you want.

Regarding wealth building: I think there are two sides of the coin. I don't like the current society where people don't have places to rent. HOWEVER, that's the society we live in. I think you were right: it's corporations owning LOTS of short-term rentals and not the individuals who have a few places. (I also hold the belief that lots of millionaires demonstrate a healthy economy. Billionaires are bad).

The way I thought about it when I bought my apartment was: if I rent and something happens to me in 15 years and I can't pay rent, the landlord will kick me out and I have nothing (provided I don't have money set aside); if I buy an apartment and I can no longer pay the mortgage, I can sell it and I get back part of what I paid for it. It's not for everyone, I live in Romania so it made a lot more sense for me, especially because I got it at a time in which the prices were not so insane. You truly feel a sense of security with it, especially if you start paying more and you see you're able to have it paid quicker. I was so sick of landlords not accepting pets, having to control the home once in a while and having to ask them for anything, and not being able to ever feel at home. It was really stressful because you can always get kick-out if they want to sell and then you have to pay again a lot upfront to get another rental. It might be different here though... I just wanted to share my experience in case it might help.

Totally agree that the home you live in is not an “asset” per se, but whether you rent or own living expenses are a necessary expense. I own in a more affordable market so even factoring in maintenance I pay less monthly then you do for rent. So it is all relative and depends how you want to spend your money. What I will say about home ownership is I have great security and comfort from owning my home. I love the grounding feeling that I get from being somewhere I could be for the rest of my life (if I choose) I don’t have to worry about moving and upheaving my life and the anxiety relief I get from that is worth every penny!

My husband and I were fortunate enough to be able to buy a home in 2021 when the interest rates were very low, so we bought more house (which is also great because we both work from home and needed the space for our offices) than we thought we could even originally afford and in an area where we know we can make a significant amount money over a short period of time if we should sell it soon. Looking back at the 2008 housing bubble burst, it wasn't affected badly then either, so it feels like a safer investment knowing that and watching what the housing market has done over the years in the area.. This isn't our forever home, so we know that when do sell, more than likely it will bring in a significant amount of money for us. Should a home purchase be the main goal to bring in significant income in the future? Absolutely not. Can it bring a lot of joy to have that extra space, have a yard to have that dream vegetable garden (that's definitely saved on the groceries), and likely bring in a significant amount of money to help with another future home purchase if that should be desired? Definitely.

People don't usually talk about all the expenses that go towards owning a house- they compare what they pay for rent vs a mortgage and forget entirely about closing costs, realtor fees, home insurance, flood insurance, insurance if you are running some sort of business from home; roof, yard, windows, siding, appliances maintenance, property tax, higher cost of utilities for a larger space, HOA fee, whether that's even somewhere they want to live long term, whether income is stable, if they want to renovate it, if there's unwanted development nearby, what to do if the inevitable natural disaster wipes the place out and leaves you in limbo for 3-4 years cuz all the builders and lumber are all occupied working all the other houses that were also destroyed in the area. If all of that has been carefully considered and calculated, and the answer is clear, then one can make a decision eyes wide open and not just cuz popular opinion says you should. I don't understand generational wealth either but I would want cash money rather than a dusty outdated old house filled with my parents' junk that I would then be burdened to clean up renovate sell and negotiate with siblings on how to split the labor and the supposed profit.... Generational wealth to me is like when wealthy noblemen profited off slave and child labor and their serfs/tenants labor and taxes and that's why they had money for generations??... just don't think it's as applicable today. And yes to short term rentals being unethical when it's being used as a business model/investment strategy when houses should be homes and a fundamental human right.

You can afford a home in LA based on how other people determine “afford” aka the bank owns the home, you’re just really cautious which makes tons of sense!

If I had a kid I would probably try to buy a house just so that it could be passed down to them and they'd at least have the security of having a roof over their head without having to pay rent if they don't want to rent it out for cash flow or sell it. But I don't think owning a house would actually create more wealth for me in my life time if I lived in it like what you said. It'd just be for my kids if anything. Thing is though I don't even want kids so I probably won't stress myself by trying to buy a house.

Love your hair cut!! I always wanted to own my home and do. It will be paid off in a year and I won’t have to worry about paying housing when I’m retired. Upkeep yes but who wants to fork out the prices of a rental their entire life.

Stephen Antonioni had a video about this topic and opened my heart and mind to a different plan for myself. being to focused on owning a home. single. with a dog. in this economy. has got my binge soending and discouraged and i realized i had to question my motives. like you said. it started to feel pressure i put on myself that i didnt fully understand, which blurred the lines for my personally and i put my whole head into work and lost sight of my personal interests and own tastes. im rambling. but. thanks for opening this topic up.

I got lucky and purchase my home for $195K back in 2018 with 3.5% interest rate. It is now worth $350K. To me, this is my investment property even though I’m living there. I plan to sell it one day to buy my dream home in the future or pass it to my future child so they don’t have to worry. Other than that, my mortgage is $900/month and it will remain that price for the entire time I live there. So I see it as ‘controlled rent’. So much better than paying the average rent of $2000/month in my area.

Hi! I bought my property although I really considered renting for a couple of reasons.. Money and investing aside I think owning your home provides a certain stability, knowing that my payments will remain for the next few year is very reassuring (I have a fixed rate). I saw how rents were drastically going up and I wanted to protect myself from those cost (and stress!). Savings - although I agree that a home you own and pay down do not produce any passive income. Should you be lucky enough to sell it a decent price you will get back a profit, if you break even your money back and if you sell at a loss but not underwater a smidge of your money back. Whereas with renting, you are paying for a « service » and not getting any money back. Lastly, once the mortgage is paid off you own a physical place that no one (except the govn’t maybe 🤣) can take away from you, you can change it how you like and renovate it as you wish, it’s not a financial reason but I find it to be pretty powerful!

I bought a house three years ago and it has absolutely cost me more than renting so far, but it's so important to me that I own it and will pay it off and one day my daughter will inherit it. Also a huge thing for me is that nobody can make me move, nobody can change the amount that I pay per month, the stability is key for me.

I totally agree with you - not all homes will leave you with wealth… on the flip side they could be a burden with tax implications, clean up, etc! Also - loved that you mentioned DINK. Haven’t heard of the acronym but that’s the decision we’ve made. 👏🏻

I totally agree with you, homeownership makes so much more sense if it brings in an income and it's very much possible nowadays. Doing such a huge investment and then seeing no return on it it's very frustrating and unnecessary in my opinion. House hacking is a great way to do it for example or short term rental or other ways.

One thing not mentioned here that is commonplace in other countries is multi-generational living. Obviously this can't and shouldn't work for everyone, but it can be a great tool for some looking for a more stable living situation that won't make them broke. My husband and I just bought our first home in November with my parents, and we pay less in mortgage than we do in rent. We love being able to do whatever we want with our house and not have to worry about rental friendly options for changing things up. Being 32, we grew tired of not being able to have a living space that felt like ours.

Generational wealth means you pass it down to your kids, then they build on top of that and pass it down to your grand kids. Homes w/ land are non-depreciating assets since the value is in the land which will also be limited in supply (there's only so much earth!). passive income generally does not build up wealth... because you're passing down CASH and cash depreciates via inflation.(its also easier to spend!). I feel that your view on passive income stems more from shrinking YT revenues (affecting all youtubers) and that is a different conversation, separate from building generational wealth. (balance sheet vs income statement discussions are two different things). A million dollars in 1970 can buy multiple homes... a million dollars today cannot buy a crack shack in my city. Literally, not one home listed for less than a million ...so how does passing down cash help the next generation? If you pass down a home, then your kids buy their own and then pass down more properties and this happens generation over generation over generation... People today with "old" money generally built it this way.

I think there are so many factors that go into whether home ownership is right for the individual or couple. In Nz currently, the cost of renting a property is so much higher than the average pension, the advice I was given was to have a solid retirement comfort plan.

Traditionally it was the way to build lasting wealth because the other ways to build wealth as a 'normal' person weren't available then. Even investing (outside of a 401k) as someone that wasn't already wealthy was available. The big reason it is a wealth builder that it's forced savings is the main reason that across the board people have higher net worth as home owners. Also the monthly bill of owning stays relatively stable over the years vs rent which can go up fast depending on the market.

We bought a townhome last year, and although I love owning and having the freedom of making the home how i want (on the inside), the HOA is stressful AF. I think the situation depends on location and what you plan on doing in the future. Renting made me feel like throwing money away, but the HOA makes me feel that way as well. A main reason why we are DINK is because we would feel so unstable having to provide for a child, having 2 dogs is already a hassle. Everything is based on financial freedom, so if it makes you happy to spend that money elsewhere - I say go for it. I think people are just envious of others who are able to buy a house for profit reasons only

Home ownership has challenges, people buy more than they can handle or need. However from appreciation I have saved more money than I ever could from budgeting. Also my rent will never go up, in fact my payments went down $300/month from refinancing. It’s a big purchase for sure and lots of mistakes can be made, but it can be life changing in a very good way.

For us, we bought our first condo knowing we’d live there a few years and then move to a house and keep the condo to rent out. We also lucked out with very low interest rates on both that condo and our home now. Otherwise I’m not sure the rent we could get for it would make it worth it. Definitely has to make sense on paper!

I noticed a lot of people now cannot simply afford to buy a home and invest for their retirement. I think if you can afford to invest at least 15-20% for your retirement and buy a home that is maximum 28% of gross income (recommended by Ramit Sethi) then considering buying a primary residence for lifestyle reasons (not as an investment) makes sense. It will not build generational wealth if your home ends up being your only asset because you couldn't afford to put into your 401k, IRA, etc.

I agree with you. Especially in LA, mortgage is wayyy more expensive tthan rent

Home ownership is definitely not for everyone, but you need your money to work for you whatever you choose. And there's no right answer. Home ownership does a couple of things for us. 1. Gets our money to work for us. I had a condo that had some equity and then used it to buy the house that we're in. The people that I know didn't start with a million dollar house (we live in the Bay Area which is quite expensive). 2. It's an asset that we can then pass along to our children. 3. Gives us a fixed mortgage rate that is rooted in 2013 (when we bought the house). It's considerably lower than market rate rents now, so we're also able to save more. Though the mortgage payments did feel like a stretch at first.

Real estate is the only stable investment. Offshore investors are paying cash and they have a lot of cash to buy. They are the reason home prices have been crazy high. You buy a home, you build equity, you borrow from bank against your equity, you use that to invest more.

In a good market overpaying can be ok if it’s a forever home, but not if you might move in a few years. You are only under water if you have to sell, if you can wait it’s not a real problem.

Thank you for saying this! Home ownership isn’t the be all end all for me either. I’d prefer to own a vacation home with low maintenance. Your Texas idea makes sense only if you get a low maintenance home like a townhouse or condo with multiple levels. So even if you have air b n b etc you won’t need to mow the lawn or maintain the exterior.

Love the haircut! Inspiring me to free myself and make the chop. Which mic are you using?

Well I don’t have a set opinion for home ownership but I do find buying a home for the sake of making an income out of it pretty damaging to those who can only aspire to rent. With the increase in rent prices, to me, it just seems like all this ‘passive income’ is an option solely available for the rich… this is a huge topic rn I feel very contradicted by it

I’m soooo into you and Brian buying an investment property in Houston!! xx

Kids actually drives parents apart , so unless two ppl r willing to sacrifice their own needs and wants, don’t go down that rabbit hole

I don't think the link between home ownership and wealth is as direct as people make it out to be, but refinancing your home allows you to take out loans at extremely low rates that are more competitive than any loan you could get elsewhere, making it a great asset if you have big future expenses, whether it be medical or paying for a kid's college. But you have to be savvy enough to know how to do these things... I grew up low income in an immigrant household and home ownership has definitely been a blessing and a curse for my family, in large part because there isn't transparency on how to game the system in meaningful ways that actually expand opportunities for the home owners beyond just having something to hold.

I think back when you were on your debt free journey everyone was so invested in it. Now you’d have to leverage your current following & transform your channel into something else to grow your $$ on social media. The potential is there!

Bought a house in 2020, sold in 2022. Not interested in owning as much as I used to be. I like the freedom of moving around. We got lucky in the timing in that we sold just as we moved, so we didn't have to pay rent and mortgage. If we ever need to move again for a job or other lifestyle change, it will be much easier. I am tired of feeling tied to a place.

Aja, house hacking is THE strategic method to own property AND generate income from it! I just proceeded with this in October and am planning to launch it next month with an MTR approach :)

I love having my own home. I just hate how much they have increased over the years, plus my mum retiremented, and she have to pay taxes on it. It's almost $3,000 on her fixed income. I don't know why I taught taxes decreased as one entered into retirement.

I think home ownership for generational wealth many times is for the future generation, not for the people buying home. Bc homes and land usually appreciate in value overtime so in that sense you can build wealth for future generation or whoever lucky to receive it all paid off lol

I’m not that knowledgeable of the housing market and the process when buying a house and when you are the owner of the house. I’m glad you brought this conversation up so I can also read other people’s comments. Is it possible to.. maybe.. do a video about the housing market and the process or what to expect when buying a house? I’m not too sure if you’re knowledgeable too, so maybe have someone that you know chime in? Me and my boyfriend planned on buying a house this year but somehow my gut was just telling me right now is not a good time. I don’t know why, but our instincts usually guide us in the right direction.

I agree with Aja, generational wealth comes from more than just the house you live in, if it doesn't give you a passive income it doesn't give you wealth on its own, it's what you make with the opportunities that -not renting- gives you :) otherwise the fruit of you hard work will only benefit your kids, but what if you don't want to have kids haha who gets to reap what you sow? shouldn't we ourselves deserve to enjoy it?

I feel that it could be generational wealth in the idea that the house is paid off and the beneficiaries have the means to upkeep the house. That’s not always guaranteed so it’s a toss up, I think. However, I do feel that it’s also a great support in that there’s a home to go to for whoever needs to settle down for a short time and a long time. I never had that so I find that very attractive to own a house and keep it for my kids and their kids.

Hahahahahah I’m dying at the hair LOL

Hey Aja maybe I can give a different perspective. But did you watch Ali Abdall apartment tour? He talks about the cost (he rents it but also talks mortgage) while he shows the place and you can see how wild the cost is for a place that looks like mine that is triple the value. At 2.4mil its just a regular sized 2 bed flat renting for 4k a month. I will say I never want too buy a house never been my goal at all. But I am single, live in london where there is a housing crisis for renting and ownership. I am in a flatshare - my flatmate owns the place and we are clean and i could live here forever but there is an option for me to by a shared ownership which would be the only affordable way for me to live alone as the bills are less than renting my own one bed in london, only reason I consider buying is so I can live alone. An example living alone renting would be £1600 but if i bought living alone would be the same I pay now for a room at £800 a month huge difference. So yes ill pay the samish but i would live alone. If I was in a relationship i probs would never buy as a 1 bedroom split between 2 people would provide me with lower bills and is sustainable for me while I live in an expensive city. So I can think the cost of being single and wanting to live alone plus renting crisis I have to consider saving 30k so I can pay less for living alone. I don't care about generational wealth via a property as I never want kids and the house would only be there to help me get on a property ladder in Portugal or Ghana so I can retire there in 30 years and buy something I could probs pay cash.

Really enjoyed this commentary 🤗

Just don’t buy a house that you can’t afford or you have to eat ramen everyday. I think when ppl say home ownership builds generational wealth means it’s fully paid for already. It’s cheaper to live in a fully paid for house if you only have to pay prop tax and maintenance

Property is probably the No.1 Contributor to generational wealth, however it doesn't take much to screw it up. Personally i'm pro-home ownership, i don't think now is a great time to buy, either wait for prices to go down or interest rates to but i think the pros overall outweigh the cons.

i guess for me, it depends on what your definition of generational wealth is. speaking only for myself and my husband, i am not looking to make money off my house. my definition of generational wealth is leaving behind a home that i own that i can pass on to my family. for me, it's a sort of "guarantee" that my family will not be houseless and if needed, they can use the house to be able to live in or use for cash/investment in the future. hope that makes sense. anyway, owning a home isnt for everyone, just as kids or college isnt for everyone....but it is important to me and my hubs so that is a huge goal of mine is to be able to pay off my house and own it 100% (which will be in 8 years!). good luck in whatever direction you decide to go in!

I’m not sure how much you could make from renting out your LA apt as peer space, but would it at least cover the rent itself? If so, as long as the mortgage plus other housing cost in Houston won’t be to much of a increase from what you are paying for rent in LA, the whole thing then make sense to me 😊

ADU. Many ppl are doing it for your home. It helps a lot with our montages.

I love your personality.

Really loved this video… your points are valid

If the Beyonce list doesn't start with Lemonade as #1 then I don't want it LOL. No actually this is the kinda content I love plz share!

Dink is like the ultimate financial freedom.

Love your hair!

More of these pls

Yes, owning a home will build generational wealth, but you need to pick the right property with potential to grow. For the most part, LA houses will appreciate if it's in a good location and have good floor plan. Don't give into the frenzy like people have in the past 2 years. Don't look for surface level beauty and buy flipped homes with new upscale appliances and decor. Flippers have already earned and therefore you won't. If you don't buy the investment property, someone else will.

Can you please make a video about wanting or not wanting a babies? Sorry if its too personal, just curious if you want to grow your family with Brian❤️

I bought my condo here in LA in early 2022. For me, it made sense because the rent here in LA continues to increase (my previous 1BR apartment in a nice area was re-rented for $3k/month after I moved out, which is more than my now-mortgage on my 3bed 3bath condo), and I wanted to lock in a guaranteed monthly payment for 30 years that cannot change. I know taxes and HOA fees can go up, but they likely won’t jump up by huge amounts year over year. I liked starting with a condo because I know jumping into a single family home can be really overwhelming maintenance and taxes-wise. I had to pay over asking price for this place, but I got a great interest rate so my monthly payment is comfortable. Down the line, I’m building equity towards a single family home one day, and I may choose to keep this condo and rent it out or sell it when it’s time to upgrade. I’m generally a very risk-averse person, and I hated moving every time my landlord increased my rent out of my price range. I agree that home ownership is not the best option for everyone - that is the previous generation’s notion, and sometimes it’s very bad advice. Home maintenance can be astronomically expensive. It’s important to have a sinking fund to cover emergency expenses and invest in really good homeowners insurance.

I feel like it’s almost unethical to rent out a property if you can’t survive without the tenants paying rent for a month or too… we all fall on hard times and it’s sad people get evicted for that. I don’t have a hard opinion but I think we should all treat each other with kindness

I think it comes down to location and timing. Like does it make sense to buy a 2 million dollar home probably not for most people. Because it would feel impossible to pay that off. But for example I live in a 400 000 dollar house and it's a nice 4 bedroom house. It's possible to pay that off. You almost have that in a downpayment amount probably. So I think it's about where you are located. I feel like a lot of the major cities in the US the prices are insaneeee and therefore house ownership doesn't make a lot of sense.

It's still a dream of mine to have my dream home but it's not gonna be for today! lol

I was under the impression home ownership gains generational wealth because the parents buy the house at $100,000 but then by the time they pass and the kids inherit it it's worth $500,000. And the kids didn't put any money into it, they sell it and they are set free money. Also parents have the ability to refinance for college possibly paying lower interest rates for student loans, they don't have to worry about a landlord randomly raising their rent by $300 overnight or deciding to evict them for no reason. these aren't wealth issues but I think it adds a huge stress to a family which spreads to the kids. Maybe the house gaining equity isn't true anymore but rents in my area are higher than a mortgage and it's terrifying and infuriating.

PErsonally I don't plan to have kids at all and will stay single indefinitely. So in that case I wonder if buying a home is worth it for me? I do need a place to live in when I am older so I guess that would be one reason? I am also in LA and have 130k ready to put down towards down payment and closing and that only gets me mediocre/small/old condos in the valley. It makes me sad.

We are homeowners because we have kiddos and we picked a house in a good neighborhood with good schools nearby. Unfortunately in the US zip code is destiny. At least educationally speaking. 🤷🏽‍♀️.

Unless a home owning parent has an abundant retirement, savings and has invested wisely, there is the risk that the home as generational wealth will need to be used by aging parents medical expenses, etc. I do want to buy ultimately and enjoy my DINK lifestyle but it isn't the end goal. Would rather travel than be locked into a major debt.