The Dark Side of Owning a Home

Подписаться 487 тыс.

Просмотров 29 тыс.

50% 1

The Dark Side of Owning a Home
Jump start your journey with our FREE financial resources: moneyguy.com/r...
Reach your goals faster with our products: learn.moneyguy...
Subscribe on RU-vid for early access and go beyond the podcast: www.youtube.co...
Connect with us on social media for more content: moneyguy.com/l...
Take the relationship to the next level and become a client: moneyguy.com/w...
Bring confidence to your wealth building with simplified strategies from The Money Guy. Learn how to apply financial tactics that go beyond common sense and help you reach your money goals faster. Make your assets do the heavy lifting so you can quit worrying and start living a more fulfilled life.

Опубликовано:

9 сен 2024

Ссылка:

Скачать:

Готовим ссылку...

Добавить в:

Мой плейлист

Посмотреть позже

Комментарии : 105

@ianmcmahon8589 28 дней назад

The biggest surprise for me was loss of free time due to mowing, landscaping, projects, and upkeep. My house was 3x the size of my apartment and was 40 years old. I had been doing enough home improvement stuff with my parents over the years to roughly understand the money costs, but the time was a surprise.

@jdp486 28 дней назад

Little suggestion: maybe add some music to the intro? It looks nice, but I thought my computer was muted 😅

@awesome9174 27 дней назад

Yeah they should polish that up for sure

@abramtreadwell722 28 дней назад

My fiancé and I work at the same place too. Different teams but I feel our risk is much greater than couples who work at different employers. Luckily, none of the previous layoffs have affected either of us but we keep our emergency funds quite high because of the risk. Thanks for asking the question Carlos.

@mpjsac8951 28 дней назад

We are in the exact same boat. I am planning to increase our emergency fund. It’s currently at 4 months.

@Stormcoaster101 27 дней назад

We bought in 2019 and ended up choosing a home that was about 400K, far below the 1.2M-1.5M we were approved for. Our lender was shocked. We have replaced and upgraded almost every home system and take pride in having the ability to do just about whatever we want to keep the home in tip top shape. Even the optional stuff like soft-washing, new landscaping, outdoor hardscape projects etc. Lesson is - don't let anyone tell YOU how much you can or should spend. Realistically look at what you need, and if that's dramatically less than you could spend, be at peace with that. Your home should be your refuge from "life". If it's stressful to keep up, it loses that value.

@rayzerot 28 дней назад

What most people don't understand- rent is the *most* you'll pay every month while mortgage is the *least* you'll pay every month

@jdp486 28 дней назад

Yes and no - rent is the most you'll pay for the length of your lease. But I agree that owning has way more hidden costs and stress.

@davidc339 28 дней назад

@@jdp486true, but people use that same line of thinking to buy a house. They think they are “locking in” a payment, when in reality home ownership costs can, and do, increase over time.

@darkmediatracks 28 дней назад

💯@@jdp486

@chaosdragun1608 27 дней назад

Problem is you'll pay rent forever but you'll only pay a mortgage for a while.

@LawrenceTimme 27 дней назад

No because rent goes up every single year whereas my mortgage will stay the same. If my mortgage is $1000 now in 30 years its still $1000 if rent is $1000 now it will be $10,000+ in 30 years!

@josephhobbs4754 28 дней назад

When we replaced our 36 year old furnace and AC unit, we went with 0% financing for a year. We had the money to just pay upfront, but would take a big hit on the emergency fund. We were able to take advantage of a slightly down market, still invested in Roths and brokerage account, while making the payments. This way we didn't have to rebuild the emergency fund. I made a 12 month spreadsheet to track the months and payment amount.

@Mike-yr1sm 27 дней назад

There are online calculators to help estimate maintenance costs. Some consider: home age, climate zone, size of house, zip code (cost of repair), etc... to help give a baseline of what needs to be saved per year. *these are average costs and saving 2k/year doesn't pay for a new roof in year 1*

@T_Le 28 дней назад

I agree with having a reserve cash in the emergency fund. I keep around 10k in a high interest in case I need an HVAC, roof, etc. The rest I park in tbills for 1-3 months. This is a part of my 6-12 months emergency plan.

@trentenr7255 28 дней назад

Don't they say "1% of the value of the home per year on maintenance expenses?" Would make sense to add that ontop of your efund yearly once your efund is fully funded.

@Jack-fw4mw 12 дней назад

They actually say 1-5%.

@dianaP14 27 дней назад

I’m 53 and have about $225k liquid in savings which I plan to put towards becoming a homeowner, but based on the current high prices on real estate, do you suggest I hold from buying and look at dividend paying stocks instead?

@J.woltz48 27 дней назад

after studying the trajectory of great assets like real estate, dividend paying stocks and gold, my conclusion is to buy and invest in what you can afford today! working with a financial advisor can certainly be of help

@tommyReeves-8 27 дней назад

Agreed, I'm in line with having a license advisor oversee my day-to-day investing, cos my job doesn't permit me the time to analyze stocks myself. Thankfully, my portfolio is well diversified and has just 5X in 5 years, summing up nearly $1m as of today.

@katieiri 27 дней назад

@@tommyReeves-8 this is amazing! who is the advisor guiding you please? real estate prices exploded, interest rates exploded, but my wage the same, i'm screwed ...

@fromthebirchwood 27 дней назад

curiously googled Karen Lynne Chess and at once spotted her consulting page, she seems highly professional from her resumé

@JMaki-mr2mh 22 дня назад

Be careful committing your free cash now if your hope is to buy within the next 2 years.

@brandonfrey1513 27 дней назад

I feel like these guys know more about my money than I do and we've never even met! 😂

@OregonLotek 28 дней назад

I’m starting my house build next month. What fantastic timing guys!

@samuellewis1965 27 дней назад

Timing in the lifecycle is critical. Like raising children, caring for a house can have a "sweet spot" in the lifecycle -- taking on responsibility with maturity, adequate financial resources, and physical ability/stamina to do this. But a time comes when you may not want to raise children and maintain a house. In my 30s and 40s I had the energy and desire. In my late 50s I'm glad the nest is almost empty of children and want to spend less physical and mental time taking care of the nest. By age 70 I hope we are in a smaller dwelling that we rent.

@NotoriousCIB 28 дней назад

I love this channel. Love love love. That said, please stop using the doorbell and car horn sound effects. The doorbell sets off my dogs barking, and the car horn makes me impulse break when I’m listening in the car. I’m guessing I’m not alone 😉. Again, I love this channel, and I have nothing but good thoughts toward y’all.

@benvail6395 28 дней назад

Agree!

@FoothillJoe 28 дней назад

I agree. Startles me every time 😮

@kelly4421 28 дней назад

Same!

@bigbirdthug 27 дней назад

That car gets my heart going since I mostly listen on the drive

@christinewallace9251 27 дней назад

😂. Try earbuds

@werebreakingfree236 22 дня назад

i own a home built in 1975. and we just spent 23k getting it painted. 10k in cedar shingles,21 gallons of paint @88.00 a gallon. plus a bunch of other work. now the exterior is perfect. also did the roof and 3 skylights over 4 years ago which was 15k. we have spent close to 100k since 2017 when we bought this house. some of the things were wants and not needs. but home ownership in not cheap

@WaltRsDave-cs4zc 27 дней назад

With copytrading, you could be sipping coffee on a balcony overlooking a bustling city skyline or lounging on a pristine beach, all while your investments work for you. Picture the freedom to pursue your passions, travel the world, and create lasting memories with your loved ones, all because you took the initiative to harness the power of copytrading and build the life you've always dreamed of.

@JesseWatford-qe9sv 27 дней назад

Do you invest with a professional broker?  I'd appreciate it if you show me how to go about it.

@WaltRsDave-cs4zc 27 дней назад

Can't share much here, I take guidance from ‘Sophia E Haney’ a renowned figure in her industry with over two decades of work experience. I'd suggest you research her further on the web.

@WaltRsDave-cs4zc 27 дней назад

Use her name to quickly conduct an internet search.

@WaltRsDave-cs4zc 27 дней назад

SHE’S MOSTLY ON TELEGRAMS APPS WITH HER NAME.

@WaltRsDave-cs4zc 27 дней назад

Sophiahaney she’s verified

@Pje3ski 27 дней назад

Weird, I have never regretted owning a home. But I have been in the same home for 21 years and the property taxes are close to what they were when I bought it. Not so with the insurance though.

@stevenewsome5306 27 дней назад

So many people put down manufactured homes or double wides but it was one of the best decisions I’ve ever made in 2019. I own the land and bought the biggest basic double wide I could find. 2100 sq ft, 5 bedroom- 3 bath. My fiance splits the bills, so it’s not bad. It’s affordable and we upgrade things as we go. If you own the land I would atleast consider it. If you don’t own land then it may not be worth it. I’m almost 40 so it’s my forever home and if we change our minds it would make a nice rental place.

@mhinkle82 28 дней назад

I would suggest that people should try to buy a newish house. My house was built 10 years ago and after owning it for 4 years the only large expense I made for it was to replace the water heater for around $1k. Most horror stories I hear about are from houses that are 50 year old +.

@JMaki-mr2mh 22 дня назад

When I got my mortgage, the mortgage was $200 more than my rent. Now, 13 years later, I am paying 2k less for the equivalent. There could easily be foundation, roof and appliance replacements in the upcoming years. Hopefully we are in mortgage free years before too much hits.

@bradman4399 26 дней назад

Love the content but sound levels were VERY low this episode... wasnt loud enough to hear on my commute (nyc trains are loud) through my headphones... easily 50% quieter than other videos i watch

@TheJeanean 28 дней назад

Even newly built homes need an inspection.

@EddyGoyanes 28 дней назад

When they say 25% of gross income towards housing, what is included in the housing number? Is it just mortgage, property insurance, and property taxes or are there other things included in that 25% ?

@BiggMo 28 дней назад

Think of it as everything involved that wouldn’t be involved in rent.

@EddyGoyanes 27 дней назад

@@BiggMo OK. That can add a water bill, a trash bill, lawn/landscaping, paint maintenance, annual plumbing services, any security services, etc.

@bradk8590 27 дней назад

@@EddyGoyanessome of those would definitely be paid during rent, too. Maintenance and repair is the big thing

@EddyGoyanes 27 дней назад

@@bradk8590 Then how much of the 25% do you allocate for those things that are not principal, interest, and taxes? Those things that would typically be included in rent?

@jacobpierce6153 26 дней назад

Just wanna point out my brother had a decent/expensive apartment for our city and all the landlords did for maintenance in 4 years was change the air filter once. Edit: they fixed the A/C after requests but didn’t fix a small window pane broken by painters, even after repeated requests

@FeliPeltier 28 дней назад

My brother-in-law works for a bank. He says they haven’t foreclosed on many houses in the last few years, but at the same time there are many homes that haven’t made a mortgage payment in 12-18 months. He said the bank just hired a guy part-time to take photos of all these houses and he’s getting a lot of hours of work.

@rayzerot 28 дней назад

Why wouldn't they foreclose if they haven't been paid in a year and a half?

@josephhobbs4754 28 дней назад

Bought a bank owned house in late 2011. Probably one of the best times to buy in 30 years. I hope another 2008 doesn't happen, but if it does it will be a great time to buy.

@Wydsbdjwu18393 28 дней назад

Why are they taking pictures? I need some context I’m not that smart when it comes to bank procedures

@GodTheAlmightyHeavenlyFather 28 дней назад

@Wydsbdjwu18393 Probably to get some kind of estimated value of the home from the outside? Probably about to put it up for auction? Idk those would be my 2 guesses.

@albert1558 26 дней назад

How about setting up a maintenance budget. Divide the square footage of the home by 12 and I should be your maintenance budget for the house. Plus when you buy a home you should some money in this fund to begin especially if the home is an older home, the older the larger the money in this fund.

@user-je7kn7sd5b 27 дней назад

Given the persisting global economic crisis, it's essential for individuals to focus on diversifying their income streams independent of governmental reliance. This involves exploring options such as stocks, gold, silver, and digital currencies. Despite the adversity in the economy, now is an opportune moment to contemplate these investment avenues.

@kimtreasa 25 дней назад

I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or market condition, but such executions are usually carried out by investment experts or advisors I speak from experience.

@thomaswhiddon9124 25 дней назад

True, I’m quite lucky exposed to personal finance at early age, started full time job 19, purchased first home 28, got laid-off work at 36 amid covid-outbreak, and at once consulted a well-qualified advisor to stay afloat. Thankfully, my portfolio has maintained steady growth ever since, amassing nearly $1m after subsequent investments to date.

@AshleyChloe 25 дней назад

this is great! think your advisor would get on the phone with an unknown? i'm in dire need of proper portfolio allocation

@thomaswhiddon9124 25 дней назад

Finding financial advisors like Monica Lisa Payne who can assist you shape your portfolio would be a very creative option. There will be difficult times ahead, and prudent personal money management will be essential to navigating them.

@AshleyChloe 25 дней назад

Thanks for this. could easily spot her website just after inputting her full name on my browser. she replied my inquiry and we scheduled a consulting session sometime tomorrow.

@brownwhale5518 24 дня назад

from the looks of some houses in my area 'some' of those owners shouldn't own a house as the blatant neglect is atrocious (like having nice cars but their home is in shambles) (and yes, some of those homes might be rentals, but the owner is still neglectful for whatever reasons, so rentals also count) (and I said 'some' as some owners will have legit reasons for the neglect, but some have no valid reasons for the neglect) (and some neglect takes YEARS to manifest, so some reasons that might sound valid might not be so because the neglect started well before the valid reasons arose)

@jdmulloy 27 дней назад

I think Bo and Brian totally misunderstood the person who sold the apartment at 13:15. Took me a moment to understand. They said they "sold their apartment that they were renting". This sounds to me like they were a landlord, not that they were living in it. Bo goes right to asking if investing makes sense since they might need it for a new home, but this is not what they are asking about.

@christinab9133 23 дня назад

❤❤❤

@NextGenEvs 27 дней назад

Love the Cybertruck behind you!! Are either of you getting one?!

@p1qt.h4ndl 27 дней назад

Wonna fight...with Brain though...

@jonathonvoegtli4699 27 дней назад

I am due to inherit a sum or cash that could satisfy my mortgage. I know im in a position it doesnt mathematical make sense to pay it off. However i feel like if i dont put this towards something it will get spent a little frivolously (mainly by my wife). I know bo says being able to pay off a mortgage is as cool as having no mortgage. I know you guys say personal finance is 80% behavioral and i feel leaving it in cash or something i have access to might be asking for it to slowly disappear over time. The temaining term on the mortgage is ~10 years and im 34 and my wife is almost 40. I already max my ira and nearly max 401k and am well on track for my retirement. What is the best course of action with this money.

@holdencawffle626 27 дней назад

34 and 50? How did you two meet?

@jonathonvoegtli4699 27 дней назад

@@holdencawffle626 I mistyped. Should of been 40. We met at work

@christinewallace9251 27 дней назад

Pay it off. You won’t regret that! It is so freeing not having a mortgage. You can work on non retirement brokerage savings after that.

@zackcinq-mars2129 26 дней назад

Depending on what your interest rate is, I would put a portion of it in the stock market. If you are worried about it being so liquid that it may get spent, then maybe go for med-long term CD's as long as the returns (after taxes) are higher than your interest rate. But also, agree that if you do pay it off, you probably won't regret it. Also doesn't hurt to do a bit of all of these.

@Oaky 28 дней назад

Discord link?

@BiggMo 28 дней назад

Homes are where New is a better investment than used (opposite of car buying). Benefits: - builder warranty takes surprise expenses out of the picture for the first couple of years - efficiency- utility costs can be substantially lower. - no remodeling expenses (cost more than most people expect) - many HOA’s now cover front yard maintenance. Full disclosure- I work for a builder, we build approximately 200 homes a year - and this is the feedback we get from our buyers

@Beltloop29 28 дней назад

I know I'm being pedantic, but it's a cold water heater. There are very few hot water heaters. Most are designed to heat cold water.

@laundrygoddess4 27 дней назад

Well if you're being pedantic, then I must correct you and say that where I live it's just a water heater. I worked in plumbing for many years and never once received or prepped an invoice for a cold water heater.

@gumerzambrano 28 дней назад

No need to watch since I'll never own one 🙂 homes should not start at 700k in the hood

@hhjhj393 27 дней назад

I just want like 10-50acres of land, with a tiny house. I am fine washing my clothes by hand and having a clothes line. I am fine washing my dishes by hand. I am fine taking cold bathes. I am fine growing my own food. I want out of this modern society. I am willing to pay taxes or whatever. I am willing for some form of a small safety net. I think I don't really want to deal with the internet anymore, or people, or any of this sht. I don't really care about cars. Really just kinda wanting to grow potatoes, maybe have some chickens, some goats, and calling it a day. I would rather be farming for 12 hours a day then doing all this crap.

@williamparrish2436 28 дней назад

What I never hear from the don't buy a house people is how giving away thousands of dollars a year in rent is a good decision. I understand you shouldn't buy what you can't afford, but losing all that money between 20 to 35 years old seems like a waste!

@rayzerot 28 дней назад

That's faulty logic. You aren't giving away the money. You're exchanging it for a place to live and to raise your kids

@mackc.8849 28 дней назад

I understand this idea/sentiment. It's a bit flawed but totally get why this argument comes up. It's the idea that having something you own after so many years that could have also increased in overall market value whereas that is not ever the case in a standard renting situation. In reality, both situations are not financially ideal with current conditions compared to 40+ years ago in relation to what a mortgage would cost with what the median/average income was. If people really did the math on a 30-yr mortgage with less than >25% down payment, they would be scared to buy period. I have purchased my first home in late 2022. Looked at the details of my closing statement and saw what I would pay over 30 years if I could pay it off in half the time, I almost lost my mind. The question each person should ask themselves is do they have options to rent with family or close friends for 5-10 years to save and invest much of their income and buy a house later.

@Austin-fc5gs 28 дней назад

How is giving away thousands of dollars of interest a better idea?

@mackc.8849 28 дней назад

@@Austin-fc5gs Conceptually, I agree. Paying interest is NEVER ideal or preferred. However, generally speaking a person or family has two options. Buying a house in cash or taking out a loan. The big question is if there's a strategy/plan in place to have something owned when you are no longer working or able to work for income.

@Kozanne5 28 дней назад

Look at an amortization schedule for a mortgage and see the amount of interest you pay on a house. You are still "throwing away" money but just to the bank instead of the landlord. You rent the money or rent the space. You build equity but you also have to spend money for maintenance. When renting you don't have to worry about maintenance. Buying is not the defacto decision for everyone.