I bought a house in 2020. The insurance and property taxes have doubled since then, and now costs more than I ever paid in rent in my life. I feel that I would be better off living in a studio apartment in a warehouse again and investing the money in anything else.
i advise you to invest in stocks to balance out your real estate, Even the worst recessions offer wonderful buying opportunities in the markets if you're cautious. Volatility can also result in excellent short-term buy and sell opportunities. This is not financial advice, but buy now
You are right! I've diversified my 450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
@@MarkFreeman-xi3rk Where may one locate an experienced FA? I like the notion of employing their services, but it's terrible that recent stock market tragedies have started to happen more frequently.
I'd recommend Margaret Johnson Arndt. She is a genius when it comes to diversifying her holdings. You can verify her identity for yourself by looking her up online. She is well knowledgeable about the financial market
This happened with the 2004 housing boom - home prices were greatly inflated, meaning people couldn't sell later because they owed more on the house than they could sell for. I know quite a few people who bought then, thinking they were making a good investment to sell later, but it's taken until the COVID housing boom for the prices to come back to those original amounts.
To balance out your real estate holdings, I suggest investing in equities. If you're cautious, even the worst recessions can present fantastic buying opportunities. Additionally, volatility can produce fantastic short-term purchase and sell opportunities. This is not financial advise, but you should buy immediately away because money isn't king right now!
You're right. I was able to diversify my 450K portfolio across markets with the aid of an investment coach, and I was able to use high dividend yield stocks, ETFs, and bonds to generate a little over $830K in net profit.
@@KelvinWallace Would you mind providing details on the advisor who helped you? saving for a pension through a corporate program since the age of 18. I hit greater tax along the road, so I increased my company pension with a SIPP (tax benefits). I'm now 50 and would love to expand my finances more aggressively; there are a few automobiles I still want to drive and a few mega-vacations that I still want to take.
You can employ another adviser, but Colleen Janie Towe, is my one who provides guidance. She has years of knowledge in the financial markets, and her approach has worked for me in the past, leading to my success. She offers points of entrance and exit for the securities I prioritize.
@@KelvinWallace Thank you. I will search on her site online and do my due diligence. If She seem proficient. I write her an email and scheduled a phone call.
@@Hashdollars Let the desperado's buy, then when they can't afford the homes, you pop into the picture and buy at a discount in a desirable location. How's that lesson sound?
@@Natural-Blooded you own multiple homes then? Because this happens every ten years and yeah I had been involved in buying distressed properties before in California over 12 years ago so you’re not teaching me a lesson. When they can’t buy only people with multiple millions are investing hundreds of thousands. Keep waiting as they can’t sell homes the interest rate will keep going up and as home values continue to fall the mortgage 💸 rate only goes up for the average American 🇺🇸 so in reality the best time to buy is asap It’s clear as a bell homes rise in value in good areas over each decade and those that buy earliest suffer the least shit.
People were approaching a home purchase like an ebay auction for used DVD's. The media and real estate "professionals" spread FOMO like wildfire, especially with the influence social media now has. With rates over 7% and climbing, remorse is only going to grow as these FOMO buyers see their property go upside down in the coming months (at this point, anyone that bought the last year is already underwater when you account for sale fees). Couple that with the inevitable rise in unemployment rate and it's a combination for tough times. Lesson: never take an emotional approach toward any purchase, especially the most expensive purchase of your lifetime.
@@sinforoso2000 More like perhaps we should not consentrate all of our good paying jobs in a few metro areas, and build the practical housing that people actually want and need instead of these McMansions desired by developers, speculators and entities that buy mortgage backed securities to maximize profits.
The no inspection thing was just ridiculous. An ethical realtor would have advised you against that. For everyone else, no need to have remorse, values will go back up if you keep it long-term just like 401k etc
Yeah, but overpaying for a home will take "long" long term. You see the difference? Not only that, add inflation, the new furniture, the credit card bills, higher interest rates, higher fuel prices, longer drive distances, and the most important of all, will you have a JOB in the near future to pay your debt off? Thats where it really gets creepy, never mind the Joe-Biden costume....just thought I add that in while I'm at it!
Most realtors do advise what may happen without an inspection but the buyer is the boss. If they want to drop the inspection for a better chance at getting the home what do you want the realtor to do?
Luckily I had a realtor that would not falter on this even though it was affecting his bottom line. Closed mid 2021 at 2.5% mortgage rate in a great neighborhood. Very happy, make sure you choose the right realtor! Now more than ever it’s very important, especially one who knows how to negotiate.
No better for y’all! The way y’all acted with the toilet paper and the homes during the pandemic was sheer greed! Buying a home without seeing it, without an inspection, and thousands of dollars over asking price was absolutely nuts!
My sister bought a house a couple years before the pandemic. She supposedly had a home inspection, but a couple years after moving in she discovered the pipes underground are rusted and have holes and tree roots in them. A plumber told her she will eventually need the entire yard and pipes dug up and replaced.
@@kensmith2796 What could she have done already if she had a home inspection? Dig up the yard herself to check the pipes? Serious question. How are we suppose to know of faulty underground pipes when we buy a house?
@@jaysant6958 That's my point. She had a home inspection and still had a major issues that weren't uncovered. I don't know if it was a bad home inspection or what. I've had inspections done that used infrared to look inside walls, but generally not underground. I was hoping an inspector would pipe up on the subject.
Hopefully they learned their lesson. Bidding way above list price and buying regardless of inspections because you had aFOMO was childish. Now with the downturn and housing starting to lower to sustainable prices people are upset.
I bet Michael advised his clients to skip the inspection so they could get the house. Why people trust a realtor who’s only job is to close the sale is beyond me. They are on the sale level as car salespersons. They laughed all the way to the bank.
Who tf buys a house without an inspection... Seriously... You get what you deserve on this one... Should be made mandatory for any sale, it is sad but you gotta protect people from their own stupidity...
Sometimes you can do all the right things and get your home inspected and you still end up with surprises. The last three inspectors I’ve had I’ve just been terrible. Missing really obvious things like 29 year old smoke detectors wired into the ceiling. And they always have an excuse that whatever I’m seeing now did not occur when they were there a month ago or it’s not their job to look at things like that. You’d be surprised by the number of incompetent inspectors who gloss over everything so they can get another job with the realtor company.
@@latsnojokelee6434 Had a similar thing happen, fifteen years ago.... Was following the inspector, pointing out things, I would not have passed. Guess he didn't like my knowledge. He passed it, then, I got stuck paying for those things that were not right. My mistake was not getting another inspector, who was not in the pocket of the realtor!! Like to jackslap that inspector!! Live and learn.
My relative stayed on top of their new build…there was a mistake with the foundation caught before the structure thankfully. The builder had to start over.
@@latsnojokelee6434 I'm curious, I'm not a homeowner. But does the real-estate company provide the inspector,or are u allowed to get your own ?This seems to be a conflict of interest, if they do.
@@terrancewatson7915 The homeowner can hire any inspector they choose. They usually go with the realtor’s person. Buyers are overwhelmed enough. I’d recommend getting a plumbing contractor in addition to a home inspector, and having a camera inspection of all of the drain pipes and the sewer line.
I think that a lot of the remorse comes from people who wanted to buy a second home to rent out, resell at a profit and those who didn’t get it inspected and now have to shell out a lot of money on repairs. But if you’re not any of the above and got like a 4% rate, I am so jealous of you right now.
A lot of buyers had to pay significantly over asking price to get that rate. That alone tarnishes some of value of it. And if you have a low rate, the option to refinance isn't there. Unemployment looms on the horizon now. Here in Arlington I see some people relist their house and then try to rent it, then relist again it one week later. Just a considerstion when buying. McMansions tend not to make the best rentals. There is a reason why corporate landlords buy up the single story brickers, just saying. Anyway buckle up. We'll be watching 2023 through our fingers.
I bought a house that I couldn’t afford in 2016. The only way I was able to get a mortgage was with a 5 years arm and 5.78% internet rate. But in 2021, I was able to refinance at a 3.00% rate! 🎉
Best thing I would say to do is over next year try to get the house you want and refinance in 2 to 3 years when they bring rates down..inevitably they will have to bc our economy is not set up to pay these kind of monthly mortgages with high housing prices and high rates
yeah, exactly. in 2024, foreclosures will be a bigger thing. 2021 regretful buyers, negative equity, weaker job market, and not being able to refinance are going to be some causes/motivators to let houses go. maybe not so many as 2008-2010, but much more than now.
@@kensmith2796 no kidding. Its not helping matters that Nimby is still strong in California and corporations increasingly are buying regular starter homes previously affordable for the boomer generation and jacking up the prices.
@@Pinkfrosting962 I wasn’t talking about investment properties. You can still avoid capital gains on investment. You take all your profit and put it into another property tax free
Our first realtor was trying to get us to buy tiny houses for way over price, because of location, and said we HAD to wave inspection and offer $15,000 in appraisal gap to stay competitive. Needless to say it heightened my anxiety about moving and made me super depressed. Luckily we held out, got an apartment for 5 months, and a new realtor and though it's not our dream home we're actually happy with our purchase in 2022.
I found that most of the realtors I have dealt with didn't give a shit about me or my finances, all they cared about was closing a deal as quickly as possible!
Equity is the amount in your pocket AFTER selling. You have to deduct the closing costs to get the true amount. If they bought too high, it may be negative equity even though Zestimate says the value today is higher than what they paid.
Incredible the bullshit they spread. Don't forget the new purchaser has to qualify for the over 7% mortgage on a house that was bought at 4%. Wont happen.
@@corywalker9498 Yes 20% drop still way over price. I see places that sold for under 200k four years ago sell last year for between 6oo-700k now they are high 400's low 500's. So the people who bought during covid in my area would have a tough time getting their money back.
They list homes for under their true value in order to say ‘sold over listing for xxx,xxx and in order the build a competitive market for said property. What you said is one of the dumbest things I’ve ever heard lol So your bright idea is to buy a house that is listed and no one makes any offers on it because no one wants it so you can buy it 😂 That’s the exact opposite of what they recommend for real estate investment
@@bonanzatime you sound stupid. Even after you delete comments I’ll see them, RU-vid is my client and about 20 minutes from my house. You sound poor. I think you live in a trash 🗑 area. I’m not a realtor but clearly you wish you were smart enough to have become one but we’re not determined, didn’t have any foresight or are just plain stupid.
FOMO usually causes regrets/ Low interest rates were the only reason the housing market did what it did. Im patiently waiting for the next foreclosure wave to buy at a discount like my current house i bought in 2009 for cash.
How can you have equity in the house if you paid over $40,000 to $50,000 overprice in a year ? Sorry Mr. Expert but their houses aren't worth what they paid a year ago.🤣🤣🤣 They are just realizing that they lost money
I think most people fleeing California, and moving to Texas, and other hot spots, simply bought whatever was available, because the bidding wars were making it ridiculous to even try to buy a home and relocate! Now, there is "buyer regret."
I don't feel sorry, people like this are part of the reason for the rise in home prices and the higher tax rate communities are having to suffer through, hope this is a lesson learned.
Especially the people that were purchasing homes for investments to flip or rent out. Those are the ones I don't feel sorry for. It reminded me of 2004-2005.
My sister bought a home and had a home inspection done, however, a couple years later she found out all her underground pipes are rusted and contain holes and tree roots and will need totally dug up and replaced. That will require digging up her entire yard to replace all the plumbing underneath and will cost $10K minimum.
A LOT of people are reckless with their own money so imagine what they are like with someone else’s. It doesn’t even matter if they’re family members. It’s always a good time to buy in their opinion
It depend on what your plans were with the home and how long you plan on living in your home. My kids are very happy. They have a home, most of their friends are paying more in rent than they are for their mortgage.
This is going to have a negative impact in the coming months. Let’s not forget about Property taxes being higher in addition to the many costly problems that a Uninspected House can have. Especially in DFW. Anyone remember KB Homes in Mesquite in 07, 08 and the multiple problems people had with the ‘brand new’ homes. Buying any house with no home inspection is just no smart.
I got really lucky when I bought my Condo in 2021. The seller gave me half the closing costs, they paid for an inspection, and my mortgage interest rate is 3.2%. I'm fortunate to have gotten in when I did, without paying over asking price. I'll be staying put for a long time!!
I bought my house in early 2021 and i got so lucky. I closed on my house and two weeks later is when (in my area) people started offering 50k above asking, which is unbelievable. Apparently alot of people were moving from LA and were raising the prices on houses like mad. I am so glad that I bought when i did.
@@sanahlis5322 that's great! So happy for u. I bought in early 2021 too, back when interest rates were still low and everything wasn't overpriced yet. It's crazy how quickly homes have become even more inaccessible in such a short amount of time. we really did get lucky. It all boiled down to lucky timing tbh.
I thought so to but I doubt it. Wages are up if not good. Money 💰 put up from selling car to house that was over priced. Just dealing with ppl not liking the house or area they move to
As a lic realtor I’d advised my clients to get a home inspection but they refused so I had them sign off on a doc stating that I offered it and recommended it. They lost the home sale and we’re out bid and wanted to sue me for not winning the property. Good realtors don’t last long! Since then I have retired my lic.
Bought new, spec home, had independent home inspection, bought in July at 5% rate. No way I'll get out to buy at a higher interest rate. I got out of renting the last 15 years of my life.
500k house the 2% interest difference to today's rate doesn't match the 20-50k price drop. Central Texas where prices aren't over inflated as New York where I lived the past three years paying 2500 a month for rent.
You need to think hard when buying a home. You should think about staying long term. Moving around will cost you lots of money like paying the real estate agent to sell your house. And then there's property tax which you will paying a bit more than the previous owner because your home value will be reassessed. IF you stay where you are, you will be paying a lot less property tax than your new neighbors.
Never, ever purchase a home without prior inspection. Not sure I agree with everything he said especially about selling. I mean who is going to buy at a high interest rate. No, thank you I'll wait.
Because they most likely had to settle on a house they don’t want to be in long-term, out of fear and frenzy, but now they’re stuck in it because they’ll have no equity and a crazy interest rate if they sell.
Yup and because of that, home prices will continue to drop. So in reality, you’re really not paying much for a house. In 2021 people were overpaying by as much as $100k for those low interest rates. Now, people are buying homes for as little as $100k under asking price with the new interest rates
For all home owners who heard that you might have some equity in your house and want to sell. Although this may be true but houses are staying on the market longer and prices are dropping rapidly. This is because real estate investors are also selling but they are able to sell at a lower price since they have more wiggle room. Whereas homeowners, that may be your only asset/liability. There just isn’t as many buyers as there were these past few years. Just wanted to provide some insight into the other side of the spectrum. It isn’t as easy as they said it is in this video.
You’re not really gonna have equity if you are struggling to pay for an overpriced home LOL! These silver-tongued realtors and the yarns they spin, jeez…
-The great majority of the homes purchased after the pandemic were as is with no inspection, check. -A great many of these homes had major underlying problems, and home buyers only observed the cosmetics of the home, check. -Because of rising interest rates that will continue many months to years, homes are significantly losing equity, check. -Large, medium, and small investors played a significant part in artificially altering the nationwide home supply and prices, check. Many regrets and a nationwide catastrophe, priceless.
@@botaccount3449 yeah, but the big question is the current and future equity loss based on rising interest rates (over paying). But if you plan to die there, you bought your home for the right reason (no regrets). But many purchased as an flip/rental investment or plan to eventually sell for something else.
I sold my ridiculously overpriced west coast properties and bought much cheaper somewhere else when my job went remote. Even if I took lesser pay locally if remote work dries up, I have no mortgages anymore and it's cheaper here overall so yeah, no remorse.
I bought my house cash in a cheap location. So like you I don't need a high paying job to survive when my total bills minus food is about 250 usd monthly. Lol
@@lt3074 I didn’t downsize at. If anything i have a much nicer and larger house now in a much bigger lot. I struggled to get into an iverpriced market held for four years and sold at peak. Now no mortgage. The west coast is ridiculously overpriced
@@lt3074 in my case. I'm a 1st time home buyer. Tried in nyc boroughs since 2015. Every program failed me and was about games. I gave up. Every year barrier to entry increased and felt like I would just die a renter. At least I saved up. A down payment in nyc can be a paid off home in another city. Now I feel free, it's weird having this feeling of freedom with a paid off house. You don't feel owned.
Why are they remorseful? They got record low interest rates during the pandemic which saves hundreds a month. They are over 7% now. I am trying to get a home for myself as well but I had to back out since it has become unaffordable. Also, it really should be illegal to sell a home that has major issues or the seller should be required to disclose every single current issue with the house.
Patience is a virtue. I have a home that is paid off, and yet I still was not interested in the hype. If everybody's buying, that means there are only a few winners.
Glad they're upset. I wanted a small 700 square foot house as my first house. It has historically sold for between $50,000-$75,000 but during the pandemic the owner put it up for sale for $150,000 and then there was a bidding war that ultimately brought it up to $189,000. The house is so tiny and so rurally located that I didn't even fathom paying anything even remotely close to the asking price let alone bidding it up in price to close to $200,000. I instantly knew whoever bought that house would regret it immediately, sure enough it's back on the market - listed for $175,000 - marked down two times from $220,000 in the last few months. The buyer has already given up in less than a year and will lose tens of thosands of dollars on it. Stupid.
Overpriced, overpaid, and some have over extended themselves no way I backed out and will purchase next year don't be in a hurry for anything your time will come no blessing should be a curse
These are some realtorsnakes.......Fact: People who were trying to use their VA Loans were denied the opportunity to bid on the homes for sale. These sellers would only accept bidders who waved their inspections "rights". For this guy to talk like these buyers chose to wave these safety measures is asinine.
I sold 2 houses recently, one in 2020 the other 2021. I received 10 offers on the first and 5 on the second in a matter of a day on the market. I accepted the most competitive offer that was easiest to close. Plenty of fha and va offers were there.
@@mph5896 VA doesn't allow inspection waives.. and what are you saying? Of course VA and FHA buyers were making offers, but that doesn't mean that they were being accepted.
If I'm going to buy a home and the seller doesn't want me to have an inspection, bells and whistles should be going off at that point. If you bought it, it's your problem for not having an inspection. End of story. What kind of idiot makes a $300k purchase without an inspection. Or $400k or $500k. 🤷🏻♂️ Experience is the best teacher I guess.
@@Beat562 Either way, what rational thinking person wouldn't have an inspection?? Buyers control the market. This is true of any market. If you can't get an inspection, then you walk away. If enough buyers start to walk away, guess what happens to prices??
These are first world problems. True that people were often motivated by winning a home. Learn from that and don't be in a rush to change again. I also would not sell because my kids are getting bigger or I want a second home space to work from. Before you know it the kids will move out or you won't need 2 home offices.
Exactly. I had a single friend who started dating a divorced woman with 2 teenage children. She moved in and they got engaged. She then started bugging him to sell his 2,000 sq ft house for a bigger one for her children. They were 15-16 years old. Fortunately, he didn't move. The 15 y/o moved in with bio dad a year or two later and the older kid went off to college around that time as well and they became empty nesters in a home that was more than big enough for 2 people.
I had the general inspection followed by plumbing , and electricals and i still find things wrong with the house....i can only imagine for people who made outbidding offers by only looking at pictures on trulia...a year ago i couldnt believe it when i heard people were buying houses like it was an item on amazon...
Why would people waive inspections on a $300k+ purchase? That's like not test driving a car, not researching and touring a college, or not measuring when buying furniture.
I bought my home in the 2008 bubble and fought to keep my home... fortunately, I chose a home I loved in a good neighborhood - It will double or triple in ten years for obvious reasons... Just stay the course 👈😎
Homes were ridiculously overpriced anyways. This isn't just about these clowns waiving inspections it's also about how ridiculously overinflated the housing market is to begin with. It needs to collapse if home ownership ever going to be a realistic option again for 90% of people.
Paid $25k over for my home, no inspection. Absolutely love it. My already built man cave and outdoor bar with an included jacuzzi was worth every penny. 👍
This is not only happening to houses, but to RVs as well. Back in 2019, you could get a Rv trailer pull behind (example), Airstream 23ft was about 79,000. Now they are about 119,000.
I bought my home in the 2008 bubble and fought to keep my home... fortunately, I chose a home I loved in a good neighborhood - It will double or triple in ten years... Just stay the course 👈😎
I just love these stories about buyer's remorse! If you bought or sold a house during the market peak, you're part of the problem why housing became so expensive in the US
Dumbest part is the fact that most people complain about the system but then BECOME the system. The system isn't a system without people. I'm glad all these people got screwed for their own stupidity and greed. They wanna whine and complain while being no better than the people they hate on.
@@yeahgirl11 yes pretty much the "baby boomer" effect. Just like how the boomers were all hippy in the 60s-70s: all about equality, free speech and love your brother and sister and peace. But once they got to the 80s they were for policies like charging for community college, reganomics, not in my backyard..which succeeding generations are now dealing with as we have to clean up after them aging in residential care facilities. If people kept their ethics in history...instead of once they had things to step on other people or generations the world would be a much better and safer place.
This is bad advice. Because the interest rates are high to purchase and interest payments are front loaded on their current mortgage. So most of those homeowners payments have been eaten up by interest. The increase in property values brings increase in property taxes sooooo whatever was in escrow has been eaten up. I think one must assess if it's worth paying 40k for repairs now vs. Paying over 40k more in interest over time on a smaller home when the market is still in a downtrend.... all and all its not that easy to just sell out of ur mess and buy something else. Homes aren't moving as quickly or as high priced as before.
I would never buy without an inspection unless you have plenty money for unseen problems …foundation issues..plumbing issues..roof..all costly and on top of that you paid over asking? Scary
That and I'll only buy new at this point. First home I bought 3 years ago was new , sold it last year and the next one, once this market goes a bit down in price will be new as well.
the mass buying of houses started when companies started moving from California to here. tons of houses were being bought then like crazy, even before covid and just buying houses like crazy. since then people started also buying a lot of houses and switching them to rent houses, then the issue came were covid didn't allow people to pay rent so people were stuck with the houses they were trying to use as money fountains but since people held on to this houses the city said "people need houses" even thought there is tons of houses just that they are all set "for rent" and more houses were built and now with the 75% remorse we are going to see a ton of empty houses that shouldn't have even been built just there. me and my wife bought a house out were there was tons of forest areas and it was quiet, since then tons of those sectors have been destroyed to build houses that are not going to be needed.
Most of those Homes that People bought during the Pandemic and during the whole have to have House now which drove prices up really high are feeling the Remorse. Cause alot of those Homes are or going to be UNDERWATER. If they want to sell, They will not get the Prices they paid for it. Much Less
LOL Cacsh out and win. Good one. Try getting that 3% rate with perfect credit now. Perfect credit score gets you just under 8%. All that cash you make on the sale needs to go buy the next home because that too is way overpriced. Suck it up, enjoy what you have and make it work. This gotta have it now mentality always will get ya.
Yeah, just save your money and buy in a down market. I watched the 2006 craze and knew people were being stupid. I saved my money and waited. Then in 2011 I purchased a house in cash. It's now worth almost 10 times what I paid for it.
Also , they forgot to mention how many thousands of dollars that was offered by buyers just to have a house that wasn't worth even what the seller was asking for.
Because the home value is crashing. Thus their equity ability to cash out or relocate if the need arises. Focusing on the APR is a "payment" buyer mindset, the same type that buys a luxury vehicle finances it for 96 months at 19.9% and says but my payments are low when questioned about the price of the vehicle.
@@williammathis6044 Thanks for artfully articulating the quiet part out loud. Quite revealing about our society's willingness to carry debt so long as the payment is manageable. All one has to do is read the latest consumer credit and debt report to realize 2023 will have to be watched through our fingers.
Never forget a home bought to live in Isn’t an asset it’s a liability. It doesn’t bring in money every month it costs money to live in it. That’s the number one problem people cannot understand when buying a home. But below your ability to purchase!!!!
Exactly. My husband was trying to pressure me into using my VA loan to buy a house during the pandemic. I told him I'm not doing it until we save enough money for future repairs. If you can't afford to repair your house then that means you can't afford it PERIOD. He forgets that renting comes with the advantage of not having to worry about repairs and other problems. People like to rub it in other's faces about buying a home, but the vast majority of those people can't even afford to fix their house lmao. You're still a broke bitch with an extra payment you can't handle,
These people can’t just sale for quick equity anymore. Interest rates double what they were 12 months ago= market grinding to a halt mortgage applications are now at a 40 year low, prices were inflated and are now dropping plus you can’t refi for a lower rate to lower payments bc you would just get a higher rate, then jobs are on the chopping block. all around bad.
