Why I Don’t Own A House as a Multi-Millionaire… 

But if you’re in an HOA…

@@Suki0428 HOA: Then every board member is your landlord. :))

@@terry_willis 💯. Will never do it again.

and to add, its generational wealth, his kids might not be able generate as much income as he does

​@@jonny_laguna I don't think so. Had my understanding of investing been 10 years ago what it is now, I would've never bought a house and I'd be enjoying my retirement

You're wrong. It's not about being rich. It's creating wealth. I have done and still do everything your saying to have. I then take my earings and place them into a solid investment such as realeste. I have created wealth from it. Solid wealth that can't be taken away from anyone

that is soooooooo counter intuitive to the entire point of this video lol. "Why I Don’t Own A House as a Multi-Millionaire…" - in other words he's happy to rent and invest any surplus into other things... so who owns the house that he rents it off? oh wait, an investor! you do know that some people PREFER to rent right? just like some people PREFER to own. there is a balance.

It's people like you who rent and pay my mortgage, while my property appreciates in San Diego California

@@ryanj5328 you are welcome sir. I hope you are as good a landlord as the ones I've previously had.

Famous words of warren buffet. The worst investment I have ever made was my house due to poor appreciation, but it was also the best one because of the memories I made in it

It was then but he's talking about now.

@@AnakinSkywalkerrrop Rent has almost doubled in the UK since 2020. Landlords are getting rich while you get poorer. Buy a house. Ramit can afford to buy anywhere, anytime. You can't!

@@AnakinSkywalkerrrop maybe so but we were a single income family and I was making 42k/year. It’s was rough but it was doable. How much stuff do people buy that they don’t really need?

@@silvafox7719 buy a house now and you are at least a million in debt. If you have a family where will you live if you rent?? Housing prices increases have SLOWED so reselling will cost you just in fees alone. Emigration is now the best choice for many...

@@AnakinSkywalkerrrop he said, "have you ever in your life?" I bought my first house in similar circumstance. Made $46k/ yr, house cost $85k. Same house now cost over $200k. I sold it 9 yrs ago for $105k. Something has gone haywire in the last decade-plus!

Lifestyle definitely matters. Keep in mind that it's currently cheaper to rent than to own in nearly every city in America (not an exaggeration -- look that exact phrase up). If you want to move further away, great! But if we compare apples to apples, owning is often more expensive, and right now almost universally more expensive. Therefore: run the numbers.

Do you think that's because Americans are so brainwashed to buy? In a renter culture where people think like ramit I imagine that's the other day around.

You never own your home. It can be taken at any point. This is why you always pay taxes on it... it's never yours. Research it and check the history. People have had property taken all throughout history, for various reasons, even with being consistent and timely with paying taxes

@@cegecej That is extremely rare. My brother had the house he was renting sold out from under him twice. Two times in 3 years. He had to pack up a family of five and move.

Home ownership is a fallacy. You never own it. Like everything in life it’s rented.

What does you being a single mom with two kids have to do with this topic?

@@adam7349she is literally sharing her story. Did you try your shit in the dudes who mentioned getting a home for their families in the comments. Tell me you eat red pills while screaming that you never get laid.

Do you save and invest your money or just spend it all in a month with no savings?. If you spend all your monthly salary in month with no savings left for the next month, then there is no point owning just a home. Learn how to spend money, learn how to save money and learn how to invest your money from your savings, is the key to making a million dollar in 14 to 15 years, because the value of inflation in the currency increases the value of your investments profit every 1 to 3 years substantially, that you end up making a million, if you save 1500 to 3000 dollars every month from your income and invest it after learning to invest in mutual funds, stocks and bonds.

@@adam7349 I think her point is she doesn't have anyone else to rely on, so owning a home provides a level of security, a peace of mind, and a foundation she and her kids can stand on. We are all quick to judge, but think about it from the perspective of a single parent.

@@alcubierre-drive Dude don't be "super simp" trying to "save the day". The Reality is NOBODY is relying on someone else. Two people households struggle as much as single households. What about the husband that works and the wife is home with the kids? Sounds like you need to take your own advice. Don't be so quick to judge. Those are decisions that she made for whatever reason. Now if she is a widow I can understand but even then "the world doesn't owe anyone any understanding". Yes Purchasing a home is probably the best decision for her. If she is having problems with bad landlords that is because of the quality of places.and people she was dealing with. Maybe dealing with individual landlords wasn't a good idea. Great that you thinking of perspective of a single parent but life is hard for two family homes as well .

For sure. In Toronto, we bought our house 20 years ago for 300K and now it's worth 900K. We definitely couldn't afford RENT in this area now.

Exactly. These online "gurus" just love to tell you that everyone has been lying to you. He's talking utter nonsense.

maybe he's working for the WEF...you'll own nothing and be happy!@@olddouchebag

I agree, this guy is giving out the wrong advice and I don't believe he's a multimillionaire.

I totally agree, our current home of 23 years, our equity is a 250-300k, we are planning on selling even with a 3.12% rate. Our current mortgage has always been lower than rent. We will move, downsize, then either outright pay for our next house, or have very little mortgage loan that will be at least $500 less than our current mortgage right now. We will have lower utilities, and in a place with year round 4 season mild climate conditions, (no tornados, or hurricanes either). The next interest rate we get on our next home is not an issue.

Yeah but you have a house… in INDIANA! 😬

I live in Indiana as well. I bought a house too in 2020 for $168K for an interest rate of 2.8%, and it’s worth now $235K. I will say buying that house was the best decision I’ve made for investment.

@@davidphones7290 Yeah its in Indiana. But do you want a house or not? If you don't want to sacrifice a bit, then stay in wherever overpriced market that you live.

Homes don’t always appreciate like they are now. So, if you bought a home within the last 3 years, you’ll definitely benefit from it if you sale now. It’s similar to the run that the stock market had since the 2010s, and those returns shouldn’t be your expected returns because the market isn’t always like that

​@@rafaelw8115+ closing costs paid during acquisition, - 6% of selling costs if you decide to sell it.

Does not sound like you have a spouse nor kids.

@@jade-oh5wn Have both. I assume you make the comment because one cannot live the lifestyle I've chosen with dependants? I'm afraid to tell you, it is entirely possible. We don't need to accept the 9-5 work till you're 65 and dying lifestyle bequeathed to us by our parents. That time has long past, let it go.

I am not into living the nomad life so that would not work for me. Working a 9 to 5 has worked for me. Got my first $100k by working for a start-up company. That was an easy $100k. My two homes are paid for. I have investments and multiple retirement plans. It's good to have options. One makes do what is best or most comfortable for one. I couldn't imagine moving frequently with my family & we still manage to enjoy life experiences. Again, it's great to have options.

​@@jade-oh5wn Was an option that was opened and encouraged to me by my parents, but it never rubbed off. There is nothing that I would change to trade money and property for the experiences I've had, they are beyond price. Change is key. My children now enjoy an appreciation for other cultures and knowledge their peers know little about but perhaps that they read in a library book. But you have two properties bought and paid for, and multiple retirement plans. Why wait to enjoy life when your body is less able than in the present, I could never understand this choice so many make.

I live the same travel lifestyle with properties and a family..the problem isn't being tied to properties, those can easily become passive income. The problem is a 9-5 working to build someone else's dream. Working for yourself is they key. And it's not as difficult as it's made out to be.

Thank you for watching!

I know what you mean. I built my own house. It took me a lot of money, energy, and I couldn’t travel, do whatever I wanted, and I still had a lot of things to do. I got fed up, sold the house, took that money used for some investments, and started doing the trips I wanted my entire life. Now renting and living the best of my life.

No one runs the numbers unfortunately lol

Common rule never to violate. If you are moving every 1-5 years never ever buy. I was in the military and always rented. My friends who bought were always getting close to 10% transaction cost every time they moved

Dont buy in an HOA

@@hugoglenn9741 How much appreciation did they realize? More than 10 percent?

And that my friend is the true value of homeownership.

how did this comment get 450 likes? Your third sentence contradicts the first sentence. The guy is arguing AGAINST buying a home!

@@briantomory8399 becuase most of us dont agree with the video. Over 5 years of rent I paid 140k. I bought my home for 110k. with property taxes over 10 years I barely hit 140k in expenses including yard work etc. and taxes with expenses will continue to be cheaper for me over the next 50 years as rent goes up nearly 10% a year but my taxes have been 2-3% a year where I will teach you got 6k a month compared to the 3k. I have no idea. my expenses are NO WHERE THAT HIGH.

Curious, how do you secure "FAR more LAND and HOME" if you did not take on huge debt from purchasing your home. Are you a first time home buyer or have people who can support you financially??

Do we need to buy a house if we don't have kids?

That sounds like a great outcome. I'm happy for you! Now consider the following, which is what I want everyone to think about in their analysis before spending $$$: - What if you'd invested your down payment and rented instead? What would you have after 10, 20, and 30 years? - What if you get a higher-paying/better job elsewhere? What then? - What if you hadn't experienced a generational price increase due to COVID? (What happens if prices decline for the next X years?) - What if you'd rented and rent stayed stagnant, increased, or even decreased? - What are the other options for equity growth besides owning a house? How much does it cost?

@@ramitsethiyeah stock market went up 40% in the same period!

​@@ramitsethiu can't value the emotions, memories he had with family in the same home, comfortness etc and u said what if x year price goes down, same can be apply to stock what if price goes down, what if company goes bankrupt so measuring something value on what if is not good idea

I told u again, with 200 yrs of best investment return, the best return is stock index s&p, $1 INVESTED INTO STOCKS 200 YRS AGO, TODAY (200YRS LATER) IT BECOMES $1M, do the math it said STOCKS GIVES about 7%-10%/yr (1+r)^200, compound annually turn $1 INVESTMENT 200YRS AGO BECOME $1M TODAY using 200 yrs of LONG-TERM 200YRS HISTORY AS TRACK RECORDS, THAT'S WHY WARREN BUFFET LOVES STOCK INVESTMENT AND HATE R.E. (LL=LANDLORDING - imagine invest $2B=buy 2,000 apartment units each building cost $1M and hire teams of lawyers try to collect rents from ALL KINDS OF LGBTQ/SMART/POOR/RACIST/CRIMINALS/DRUGGIES/MENTAL PROBLEMS/ILLEGAL BF-GF-FAMILY FROM ALL CROSS PATH, U CANNOT GUARANTEE FILTER OUT 99% OF THESE 2,000 FAMILIES EACH LIVE IN YOUR 2K UNITS ARE ALL GOOD TENANTS and mental health/druggies/Zombies or future kids bring in NEW ILLEGAL/CRAZY/CRIMINALS BF/GF POP OUT crazy kids rewire electric to grow WEEDS then burn-your-house or SF famous Oakland Ghost-ship turn warehouse into party then killed over 36 then drag u in court fight n yrs=no fun and RETURN OF INVESTMENT IS SO LOW compare to STOCKS. Again, MATH AND IRS/RENTAL LAWS ARE EVERYTHING, nobody is above the LAWS. Invest JUST 1 DOLLAR into STOCK EARNS 7.15%-10%/YR then the math tell u (u need to pay me to make video edu u make u smart b/c u r bad in math, logic, science and know A-Z IRS/RENTAL LAWS ARE ALL ARE WRITTEN AGAINST LL except 1031 Exchange law which Biden wants to change this law; and President TRUMP KNOWS WHAT I EDU U HERE, HE OWNS MANY R.E. AND THE R.E. KING HIM STILL TAKES 2+ GENERATIONS & 75+ yrs to DARN SLOW TO BECOME A $BILLION while FB, AMAZON, TESLA, NVIDA, AMD THOSE BECOME 5X OR 10X MORE $B RICHER THAN TRUMP ALL WITHIN LAST 20+ YRS NOT 75 YRS slow R.E like Trump; and President Trump knows what I edu u in his head ask 'why all laws against R.E.? WHY R.E. takes 27.5-39yrs to DEPRECIATE TOO SLOW OFFSET OTHER INCOME MEANS IRS TAX LAW PUNISH LL PAY MORE TAX while ALL OTHER BUSINESS TAKES 1-5YRS with 100% FAST DEPRECIATION vs 27.5-39 yrs TOO SLOW=pay more tax. i.e. BUY a heavy 6k lb heavy car/plane, u WRITE OFF 100% IN 1 YR=PAY LESS/NO TAX=FAST DEPRECIATION OFFSET MORE INCOME SO PAY LESS TAX vs RE only LET Improvement part (say 40% is LAND Value=UNABLE TO DEPRECIATE=SO U LOSS 40% OF VALUE UNABLE TO OFFSET INCOME RIGHT OUT OF BET COMPARE TO ALL OTHER BUSINESS TAKES 100% WRITE OFF IN 1-5YR SO RE. IS 1 OF THE WORST BIZ=DON'T WATCH YT RE GURUS LIE TO U/STUPEFY U = just sudden last 5-15yrs R.E goes up crazily does NOT mean 100yrs or next 30yrs will ALSO GO UP=I USE 100-200YRS HISTORY RECORD PROVE TO U, Nobel Prize Econ Case Chiller said 100yrs R.E. only goes up just a bigt BETTER THAN 2.X% inflation or 0.6%/YR BETTER, U WON'T LISTEN 1)GENIUS INVSETOR WARREN BUFFETT HATE R.E./LL; 2)NOBEL prize Econ edu u Shiller RE INDEX; 3) I edu u... TRUMP THINKS "WHY ALL IRS LAWS AGAINST LL/RE, I'm the president now so let me INTRO NEW LAWS, BONUS DEPRECIATION FOR temp only ~5 yrs ONLY=SOON RETURN TO SLOW 27.5-39 YRS; THAT BONUS DEPR IS ONLY FOR ~5YRS after I left office then we keep the law or not! ALL RE GURUS GONE SO EXCITED ABOUT BONUS DEPR LAW WHILE ALL SMART BIZ OWNERS KNOWS ALL OTHER BIZ ALREADY HAVE 1-5 YRS fast depr ALWAYS DECADES AGO, only Trump makes u happy for 5 yrs BONUS DEPR law b/c it benefits LL him who owns many RE=takes 75yrs to get rich SLOW $B vs TESLA/GOOGLE/NVIDIA 3X OR 10X STOCK IN 5-10 YRS, CAN YOUR $300K HOUSE GO UP 5-10X become $3m or your $3K/MO RENT BECOME $4*3=12K/MO IN 5-10 YRS so it drives your R.E. VALUE UP 500% or so? NO WAY LOL, told u DON'T LISTEN TO YT RE GURU BS b/c BIGGERPOCKET, MEET KEVIN, GRAHAM STEPHEN,. ETC ALWAYS TELL U THE GOOD SIDE OF R.E. but NEVER tell u downside of R.E.=tenants STOP PAY RENT 3YRS=NO INCOME 3 YRS WHILE TESLA/AMD/NVIDA STOCK INVEST UP 200% 3 YRS, WHO MAKES MORE $ & WORRYLESS? No need to hire teams of lawyers evict them in COSTLY TIME CONSUME COURT. Back to point1: $1 invest 200yrs earn 1.0715^200=$1M today, LET'S USE LOGIC/MATH LOOK IN REVERSE (I'LL MAKE VIDEO EDU U WHEN I'M FREE BUT U CAN BUY my friend's "world's best mouse trap kills 400 rats" invention lol)... let's say R.E your house goes up at 5%/yr, then 1.05^200=17,292X; let's assume today's media USA house is $450k, that means 450/17,292=$26/house, meaning if R.E. GOES UP 5%/yr then U CAN BUY A HOUSE FOR $26 back in 200yrs ago but CAN YOU REALLY BUY A TYPICAL MEDIA HOUSE IN US FOR MERELY $26 back then? or better yet, 450k/10^6=$0.45 per house if R.E. goes up at same return like stock index at 7.15%/yr, yeah, let's do the math in reverse: say u buy a house for $0.45 in 200yrs ago, then 0.45*(1+7.15%)^200 ~=450k, but the logic proof R.E. CAN'T GET 7%/YR RETURN ON AVG b/c YOU CANNOT BUY AVG HOUSE FOR 45-CENT IN 200YRS AGO LET ALONE those upkeep in 200yrs & repair & roof (every 20yrs OR LESS replace, TORNADO/SNOW/WIND/FLOOD DESTROY YOUR HOME COST 2 MUCH vs TENANTS JUST HAPPILY FIND 2ND HOME CHEAP & WATCH $1 INVEST EARN 7%-10%/YR vs R.E. ONLY GETS under 2.7%/yr or 3% max while inflation is about 2.x%/yr). MATH IS POWERFUL. U go ask Asians b/c most Asians are very good in math, science, logic and using IRS TAX LAW & RENTAL LAWS ALL WRITTEN AGAINST LL/R.E., that's why BUFFETT LOL AT U STUPIDITY DIDN'T PAY ME EDU U AND ONLY WATCH YT RE GURUS ONLY TELL U HOW MUCH $ THEY MADE FROM R.E, but history prove EVEN THE KING OF R.E PRESIDENT TRUMP STILL TAKES 75YRS 2+ GENERATIONS TO EARN HIS $9B or less (if NOT w/o BK 2+ times) while STOCKS makes AMD, GOOGLE, TESLA, AMAZON, NVDIA ALL BECOME WORLD RICHEST WITHIN 25 YRS vs 75yrs TOO SLOW & protesters said "why rent is darn high all b/c GREEDY LL u charge 2 much, f u #@#", that's why TRUMP/BUFFETT DONT WANT ME EDU U ESP buffett HATES R.E./LL=collect rent from jobless 3yrs & there's no LAWS HELP LL STOP PAY MORTGAGE OR PROPERTY TAX 3YRS but only all laws HELP THE TENANTS DON'T PAY RENT OR CANNOT EVICT THEM 3+ YRS LOL. Nobody is above MR. LAWS and math=the language of GOD b/c PPL speak English/Chinese/Spanish all will lie but God/science languge=math won't lie lol. U need to pay me edu u:)!

It's really much more dependent on where and when you're buying. And how much you're willing to sacrifice and wait. For the most part, you don't buy a single family, a condo or coop for the investment but it can be one. I bought a townhouse condo in NJ for 80K in '87. Sold it for 80K 12 years later. Bought a multifamily in Brooklyn in '99. The value increased 70K in 9 months. That building went from 440K to over 3M in 20 years and bought me 2 more! And market rents are 5-7x higher than at purchase. Location, location, location...and timing. I was investing for growth and future comfort.

I think main advantage is the leverage in a house, but most people don’t really understand that they are leveraged

Owning a home is a headache for shure. A large family would probably be better off in a house but small families can be fine renting just the space you need not want😅

This is what depreciation is for, cash flow and a war chest. The tenants pay for all the repairs. Personal home it's on you.

Was that house in a development? Builders with tract homes cut corners and get low end stuff. Not surprising a water heater went out after 20 years, nor an AC unit or low end flooring. But the burst pipe, yikes. And @rafaelw8115, I think @RobertHasty meant that tenants ultimately pay for repairs with their rent. People pay rent to cover such costs, not just mortgage/insurance/taxes/opportunity/holding costs, but also repairs and maintenance. That's where the landlord gets the money to pay the repair person.

@TheMidasTouch11 If the rent you are charging for the house covers the cost of your apartment as well as continued maintenance on the house, then you have a good deal. If not, you're throwing money away.

This is really what it boils down to. If you can't afford the down payment or you can't afford all of the costs that come with buying a home, rent. I know many people who bought a house because they were told that renting was throwing money away. However, they couldn't afford to buy a home and weren't prepared. They ended back up in an apartment or with parents. Bottom line: if you can afford to buy a home and you don't plan to move within the next 10 years, it's the better option. Otherwise, rent.

@@misspriss2482thank you. Renting is better for me

yeah but you're making his point for him. its a pain in the ass... but you built equity

@@robi6317 Owning a home is a pain in the ass, and renting is a pain in the ass. If you own a home you might have the roof leak, if you rent you might get a shitty landlord (or a roof leak that he wont fix!) its tough to say which is easier, just different.

@@TonyCox1351but this isnt about "easy" this is about the best USE OF YOUR MONEY. and thats almost always buy vs rent. oh and ive had a roof leak for 20 yrs... hasnt been a pain so far ha ha just some buckets in the attic

@@robi6317 I cant speak for anything else but for me, making my life easy is a big part of my decision making. Some things arent worth the hassle even if they make you money.

Your contribution is Confusing : “ Owning a Home is a pain in the ass " yet you admit that you and your family BENEFITED from the Home Owner status. You Highlighted Stability, Not having a move the family etc. That doesn't sound like “ Pain " ...that sounds more like “ Pros outweighing the Cons " .

How much would you have paid in rent throwing money away you forgot to mention that.

​@@muradshawarExactly, you have to live somewhere, better to invest in yourself. Typically, rents increase over time as well, so by not buying in this scenario, the person would have funded someone else's retirement (real estate investor). Opportunity costs of not owning a home exist also. Warren Buffet said 30 year mortgages are "the best instrument in the world."

@@jasongillis1336 Exactly . People who rent for 30 years with no equity baffles me

YOU BOUGHT IN 1998!!! Bet you couldn't buy a house now.

I agree worst time to buy. Take this time and get debt free. Try and focus on only necessary needs and at some point houses will have to go down because otherwise we will have a crisis on our hands.

And how about the risk of paying real estate taxes, repairs etc..does that scare you?

@@tango4ever244 no because taxes and repairs is going to be lower then the market rent in my area. So I'm still going to be living cheaper then the same people renting in my neighborhood. by more then 50 percent.

Your comment is true. I agree! But housing is more complex for senior citizens. Every older adult is different. Because conversely, a lot of senior citizens sell their house and rent in a 65+ community/or apartment because they can’t manage upkeep of a home. Or there is fear of falling down steps, loss of autonomy to repair things due to health issues, etc. Many seniors citizens prefer to spend their ss check, pension, retirement on their climbing health care costs instead of thousands on home repairs. Or they want to spend their golden years traveling.

Thank. You!

I agree this was/is a generally held plan. Sadly I don't think it's as good as many seem to think it is. As the video mentions - it's about doing the math. If you could rent for 20-40 years at a savings of $3000+ a month - that you are then investing ON TOP OF what you are saving for retirement - then you'll likely be just fine renting during your retirement as well. Of course if rent is similar to buying, and you can keep the other house induced costs down, it could be worthwhile to own.

Bought mine in 2018 for $395k, it's worth $750-$800 now. Best investment I've ever made.

You don’t own it until your mortgage is paid off so you’ve actually made no money. Also over the mortgage term you’re paying more than £169k. If you miss out on mortgage payments then the house will be repossessed.

That is ridiculous. You have made money because the house has increased in value over the years. Jeez. @@sanjayd7

@@sanjayd7 This statement is wrong. You don't make money until you sell, however, you actual value, ie. your total assets still increase. Also who gives a rats ass if you don't own it til you pay it off, if you sell those are YOUR proceeds and of course you pay off the mortgage (and you don't have to pay interest at that point either) and walk home with the rest - taxes for gains.

@@Delimon007 lets get it right off the bat you are banks slave bruush and there are no two ways about it, you own them money then you are owned by them.

Where in the bay ?

@@vanessacazares2615 Manila by the bay lol

Hey when did you buy at 650k? Great deal tbh

@@codediva007 during the mortgage crash

Unfortunately you underperformed. Because with dividends reinvested the stock market is up over 5X.@@TheLegendaryLinx

ofcourse he is trying to brainwash you not to buy house so he can buy them. I own 2 properties and yeah my mortgage is nothing compared to rent today especially the one I'm only paying $600/month for mortgage. It's small house but still price has doubled in the past 15 years.

Should have roommates then.

I completely agree with you.

I agree. Also, in most cases, mortgage payments don’t fluctuate much and there is an end to them. Rent, on the other hand, can go up every year and sometimes quite significantly. To some degree , your ability to stay in your home is in the hands of someone else. I like the feeling of control that owning gives me.

​​​​​​​​​​@@BeautybytracileiSo does property taxes. An fix mortgages can change as well. Seen it happen plenty of times. Hope you realize you don't own you're home in this country. It's an illusion. If you're still paying mortgage? You're still renting. Then you have to worry about keeping you're Job on the deal you wrote off. Higher Insurance as well. How many years are you In a lock lease ? In other countries you actually own a home. But like everything else ? It can be taken from you. But not as common as U.S. Technology is driving everything to mobile. An so will everyone else. Agenda 2030. You won't own anything. People are the commodity. Black Rock, Vanguard? Other firms are buying property left an right. The boomer day generation is ending. Prepare !!

Amen

Totally agree, not to mention all rules we have to follow when renting a property.

Beautiful job creating your Rich Life! Whether it's renting or owning, I simply want people to think carefully about these decisions

That's great to hear my only concern is if rent prices and house prices go up, aren't you susceptible to the market like people were from 2020 to 2023 meaning rent goes up but mortgage would stay comfy if you bought beforehand? That is my only worry I guess at the moment and verge of buying a house

retirement savings are not a guarantee either, that can go down just like real estate.

You don't know shit. Back in 2012. All 401k investors lost almost all their retirement money.

You don't understand the basics of owning a home, hold onto it through the bad times..

I've rented for 20 years and never had to "deal" with a landlord. What are you talking about? I pay rent, they fix things. I never see them otherwise. You make it sound as if it having a landlord is such a hastle, like they are always bothering you?

I bought mine in 2011. I paid $135,000. It is now worth about $635,000. I have put in new flooring, painted & added quartz countertops. It was still the smartest thing I have ever done. I have a roommate who pays close to the payment - how can you not say this was a smart investment?

This is in Scottsdale, Arizona🌵😎

You own nothing if you still paying mortgage. They can take your house anytime. Not worth the stress. Renting is so much easier

Thank you

@@ramitsethi your a good guy Ramit although we differ on owning or renting.

How does becoming renters, help people?

And, I'm guessing you have no bossy landlords to deal with?

I will! Really cool seeing all the positive comments here

actually...if you're worried about losing your job, then you definitely should NOT buy a house. A house is a liability and could prevent you from moving across the country to a better job in a better cost of living area. A home ties you down and reduces your ability to be flexible.

@@toptechhawaii8156 Not worried about loosing a job, but these millionaires want to make you think like them when they are clearly loaded and the variables in their life's equation and yours are different. What makes sense for them might not work for a poor person. Watch out listening to these people!.

@@toptechhawaii8156 Also, it is becoming more expensive to rent than to own. Rent is about the same for a 3 bed house than a 1 bedroom, in some states and they are making you pay for everyting, even the sewer. The reason people dont get into more houses is because they dont have a downpayment money.

@@toptechhawaii8156 A house is not a liability unless you owe more than it's worth.

Definitely. And be sure to factor in that a large portfolio can also pay your housing costs in perpetuity...and also what you'll do if you own a house but have very little in retirement saved up. In other words, run the numbers.

​@@ramitsethiat what level of security?

@@TamunoOpuboCooksCookeyGam enough to buy a small place for the "level of security"

If one does not plan to move around traveling the world, the paid off house should still be quite alright. @@ramitsethi

@@ramitsethi Some of us have the financial discipline to live exactly how you describe. But please understand that so many Americans do not. Sad, but true. So the home equity which is pushed upon us works as sort of a forced savings account.

After running the numbers, and accounting for time value of money, what is your annualized ROR?

That same home at current interest rates is 2k a month. You locked in at a great time, covid era policy, those of us who didn't buy a few years ago will regret it, we may never see those sort of low rates again.

Yeah thats an example of getting near perfect timing with buying a property. Right now we almost couldnt be farther from the ideal time to buy a property... and besides if you compare buying a house at the ideal time to a stock at the ideal time i can obliterate your return from your property acquirement

Your home is only worth whatever someone else is willing to pay for it. Also, you forgot to add in taxes and insurance; both will never stop going up;)

@@rdw1968as with rent, and alll the limitations that comes with renting someone else's space.

With you! I do not get much in my retirement so paying in full was a great option for me and really has helped me to be able to save every month. That plus a small amount of part time when I feel like it works...

I agree. As a home owner, you don't have to worry about if the landlord paid the mortgage on the home you are renting.

Finally someone buying rental estate that uses the correct motivations and math. However your last argument is off. You can typically rent a much nicer house than you can buy, especially if you are burning principle you would otherwise put into a house. If you can’t take it with you then rent a luxury house while burning down the cash.

Or hay Im selling the house. Ya gotta move@@TheBolo2010

you dont own your home the bank does

That's what I'm talking about! They don't want us to know nor do this. They wanna keep us sick and broke. Happy for you I'm on the same exact path.

Yep you were duped by greedy flippers - sorry.

You don't have to watch the entire video to hear him start off the video by saying we're all lied to, and that if you run the numbers it's often the case renting is better lol. It's quite clear that it depends on your financial situation and many variables, and the way he started off the video is dishonest.

People with no credit history should NOT be punished by the system.

​@@user-gz4ve8mw9lget a credit score improvement SELF gives you credit for on time rent/utilities

​@@user-gz4ve8mw9l Now that government backed loans. FHA.. FANNIE MAE.. has decided not only use Experian/Equifax credit score will be higher..Transunion is being ignored.

That was a typo experian and Equifax are the only credit bureau's scores that will be considered when looking at a government-backed mortgage loan TransUnion. Will be deleted?

The property taxes will go up and so will insurance and SO will the rent.!!

It’s been my experience that scummy renters outpace scummy landlords 10 fold.

There are also a boat load of scummy/shady renters that can cost you many thousands of dollars. Its a two way street

Usury is the foundation of American economics. Think indentured servitude.

Multi-millionaires also own more cashmere sweaters and eat more caviar. Correlation is not causation, otherwise you would simply buy a jet and be wealthy.

I've moved around a lot over the last 25 years in the military. I rented at the first few bases, then I had a male landlord walk in on me (female) unannounced. He lived over an hour away. He had time to call. I bought at my next two duty stations and I am so ready to rent again. I hate that that landlord ruined it for me, but I will never rent from a small mom/pop type again. Gimme a management company as a buffer and sign me up.

There are plenty of multi-millionaires that rent. You probably haven’t met any because you’re too busy envying the dozen multi millionaires you know.

Lol I have toe hair that concerns me more than if someone on RU-vid thinks I'm rich

@@AK-47ISTHEWAYHow did pointing out that multi millionaires also rent go to me worshipping someone? I definitely don’t worship your doctor. He has you on the wrong meds.

And if you're a smart single man, you'll consider renting my basement as a roommate and investing your money in the stock market.

Finally...wisdom

Seriously, how much is your tax and insurance??

Ain’t no way. Stop it.

@philmarsh7723 You don't seem to be acknowledging that if you hadn't purchased your house then you would have been renting, and you would have thrown all of that money away and had nothing in the end.

BINGO. Thank you! You can see the resistance to running the numbers even here in the comments! It's astonishing.

@@AK-47ISTHEWAY whoa. That’s creepy. Did you confront him or her with the video of them doing this???

I mean it's called foreclosure if you don't make your payment so it technically the same

@@rafaelw8115 I was a good tenant. Paid on time with no problems. I mentioned it in my post to say that owning a home (which I now do) protects a person from a situation of lease non renewal and scrambling to find a place to live. Being a homeowner is hands down a better situation.

The psychological benefit of living in a paid off house that is renovated exactly to your taste is immesurable. I can loose my job, no problem. If I get sick, just chill. You can't live in an ETF or a stock.

@@gerritroe5 True, but that's not entirely accurate. Can you really lose your job no problem and still pay for taxes, insurance, routine and major unplanned maintenance? Also, that "psychological benefit" will quickly go away as you age. Once you're a certain age, your paid-off house can easily become a psychological burden. My father got to the point where he lost the ability to do and oversee maintenance, understand how expensive things were, and could not understand why his children could not immediately drop everything to run over and complete major repairs. My 85-year-old widowed sister has lost the ability to make an intelligent decision about anything regarding maintenance or insurance, and is totally dependent on others to make those decisions for her. For both of them, living in their own home caused them far far more stress and anxiety that simply living n a senior apartment.

Glad you enjoyed it! Thank you for watching and sharing

to each their own at the end of the day. one can rent and never own and money still leaving pockets monthly....one can buy and pay mortgage till its paid off then still pay taxes and insurance. money still leaving pockets monthly. so either way no1 is better off....UNLESS after the house is paid off it becomes a rental property earning good income then that beats renting. so in that regard a house purchase is better.

Yes but a mortgage is locked for 30 years whereas rent goes up 10% every year. The more you know...

Not necessarily. My country has a legal limit of 15% per year. The landlord can't just increase the rent, because their costs are going up. The standard increase is 2-3% a year. Additionally, the rent increase basis must be specified in the contract or the increase is illegal. There's three options: X euros, x % or tied to x index. If there is no mention of rent increase basis on the rent contract, it's illegal to raise the rent. The standard contract is valid for an unspecified time, but the minimum period is 12 months. America needs regulation to combat rent increases.

​@@Lumpia_In_Texas Rent is definitely not going up by 10% per year over the long term. Based on Eurostat data, in Europe, rent prices have increased by 20% over the past decade (link to source below), that’s 2% per year. In the US, it’s between 30-40% per decade depending on the decade (source below). So, on average, rent is going up by something like 2-4% per year. So, it would take like 23 years for the rent to catch up to the mortgage payment. So, for 23 years you would be able to invest the difference between rent and mortgage + the initial 100k into SP500 and appreciate those assets by something like 7% per year. That comes up to roughly 450k USD after 23 years. In my oppinion, there are way more significant questions to consider than the 2-4% increase in rent. Buying makes you unable to move for roughly 10 years, unless you want to risk losing money. Someone can commit to 10+ years, someone may not be ready. Also, doubling housing prices by going from renting to owning may squeeze the budget for some people to the extent that they have to significantly reduce their lifestyle or even be forced to sell, again risking losing money. So, I think that renting can be a very competitive option in terms of the financials (if you invest the difference) while offering you more flexibility. Having said that I also belive buying can be the right call, if you run the numbers, you can truly afford the doubling of your housing costs and can commit to 10+ years. And it also has perks like being able to do more home improvements. So, the point is that both options should be considered, neither is always worse. ec.europa.eu/eurostat/web/products-eurostat-news/w/ddn-20230705-3 ipropertymanagement.com/research/average-rent-by-year

But won’t the value of the apartment go up? I bought my house 3 years ago and it has already increased in value by 26%.

@@bluebirdtravelco Over the long term yes. If you can afford to pay 2600 USD for housing instead of 1400 USD and you stay in that flat for 30 years, the financials are leaning in favor of buying. But short term, the price of the flat can go up or down, and things like taxes, realtor fees will significantly cut into your profit, or even make you lose money.

That's the only way to look at owning, in my opinion.

​@@rafaelw8115May I ask where you're based? I ask this because I find this to be a huge cultural issue. I'm now based in the UK where everyone seems to think buying a house is a money decision but I'm Portuguese, where most people think that owning a house is a stability and family based decision.

@@rafaelw8115 All valid reasons but not "I'm going up the ladder reasons".

@@rafaelw8115 We live in Georgia in the US.

​@@BeautybytracileiI believe you missed his whole point, that even Included actual numbers. Buying a house Is not "Only" smart decision, Its actually a "dumb" decision die to the actual overall cost of ownership vs renting. Doesn't matter how you want to look at It, or how much you enjoy It...... Its still dumb costly. Owning a home Is a liability, not a asset.

TMI

I believe you but like he says, times are different now, thre are so many new green lwas compared to 2006, If you make 50k or less, buying a home might be a financial nightmare, depends on the situation.

Maybe dumb. When I was across the river in NJ in the 90s taxes were 4% of value PER YEAR. What would that be on a $2.5million house if you aren’t homesteaded. Not interested in those kind of taxes that’s why I pay 0.1% per year down south

I guess that makes you still crazy

taxes in nyc work different, not sure how they calculate but tax is less than 10k on the property, despite market value of 2.5 million @@hugoglenn9741

Because you are a woman.The main reason men end up with mortgages is because of thier wives. Women need to have fabulous lifestyles and show off to other women.

You are worried about $100 in rent. Taxes and insurance go up by 200-300 a month a year right now. Haha

Probably better to just buy some land or rent a condo at this point.

You can't get a mortgage to buy land as it is considered as non collateral.

During the first half of the mortgage, renting is immensely cheaper on the avg home (~$1000 per month in savings). However, if you can survive paying down the first 50%, it flips and rent will likely be more expensive (can refinance mortgage). That first decade is just insane! Arguably investing the savings by renting each month for a decade will give you the OPTION to buy a house almost cash… the mortgage interest eats all the appreciation, but taxes on investments don’t eat all you’re interest income. Owning only pays off if you can afford the first half of the amortization and the cost of owning per month because less than the cost of renting per month.

Buy a house to sell it in 5 years. Don’t buy it to pay a mortgage for 30 years.

you do realize your rent will only go up throughout your life where your mortgage is fixed. I know owning has maintenance and tax costs, but still 30 year mortgage at a fixed payment or rent where every year your payment goes up. Its a no brainer, owning is most of the time the better option.

@@hepwo91222 It's not in all cases. It's no where close to a no brainer. It takes a lot of analysis (and courage) to wisely come to this conclusion I'm very well aware of the increasing rent argument (and all the others). Where I live the average rent amount has gone down slightly. I have been working for a mortgage company for over a decade. I've studied amortization schedules, title policies, escrow disbursements, foreclosure proceedings and more. I've seen the good, bad and ugly when it comes to mortgages and am more intimately familiar with the ins and outs than the average person. Not only that, there are high ranking individuals in this company that agree with me. I just had to believe that it was certainly the case for me and it helps to have another on a platform like this agree.

@@hepwo91222 You can instead use that money into dividend paying stocks which on average go up 10% per year and right now many pay in the 4-5% range. Over time, as for me, my portfolio is so large now it pays my rent amount plus some. I've also owned but sold in 2021 with a 250% profit Of course a lot depends on whether you have a family and your future desires...

1) historically rent is always higher then Morgage ( no land land will rent his or her apartment for loss ) so it’s always going to be high rent then Morgage . 2) fixed Morgage for 30years ( currently it’s interest rate is high ) but rent goes by year to year . 3) he is keep talking about investments ( it’s so volatile) one can loose there life time savings . But if housing market crash ……. You still have home that you live in it . 4) rich stays rich because people like us pays rent to them ( our land lords ) 5) wait for the right time to buy ……. Currently it’s high price and high interest , it’s like double whammy . 6) this guy is worth $25 millions net worth , so when he invest his 20millions and if he gets only 2% returns that’s it like 200k & when you invest your 30k ( for an example ) you are up say like 10% ( only if your luck ) you are making only 3k profit a year . So his logic is only good when someone has lots of money to invest . Most people buy home with maximum 100k down payments so . Don’t fall in for this guy .

agreed

Yes there is, and I think he kinda mentions that at the end of the video. The only good reason to buy a house at current market is because you actually care about owning it and being able to do what you want with it.

Thats pretty well put into words, thank you.

Totally agreed! This guy might be owning hundreds of rentals lol. How in the world is paying someone else mortgage better than paying your own mortgage 🤷🏽‍♀️these you tubers honestly I have no words

Yeah i think i got lucky, as at first it didn't seem that way. Bought a house with now my Ex-Wife, she got a good paying job and let me have it. It ended up better for me as i have a 4bdrm, 3.5baths, 3k sq ft two car garage for my upcoming Porche Macan GTS lol, single life baby for me and my furries.

Taxes in New York, Illinois, and California...Yikes!!! 😬 NO THANKS!!! 👍😉

​@@la_baby_khalil7703that's why I'm trying to leave ny

Lol and I feel the opposite... my home I could hear everything the neighbors were doing. Now that I'm in an apt again, its actually much quieter and less stress. Mentally renting has been life saving.

@@discoveringhealthandfinanc8328and can’t forget about the high cost of fixing things at a house on the other hand when you rent they will fix it all. At no cost 😃

If you have lousy neighbors in a house, you're stuck with them FOREVER. In an apartment, you can just move when you're lease it up, or maybe even legally terminate your lease early since your landlord violated the terms of the lease by not maintaining quiet on his property.

@@jasonjames4254you can sell and buy new one

It’s easier to escape bad neighbors when you’re renting.

$3k/mo of my paychecks direct deposit into brokerage accounts that I've set to auto-invest or DCA (dollar cost average) daily into assets of my choice. It's become very easy and effortless with today's financial tech.

Yeah the mental discipline to save and invest the difference end up being difficult to most people.

If you had put 30k in 2010 in the S&P500 and contributed 500/month, could get back 7x returns

You are not talking about the money you didn't make had you invested in Apple stock after the Iphone release.

This is the biggest item in our current world with short-term jobs and two parent working households. Locking yourself down to a specific location severely limits your ability to change jobs, and selling a house and buying a new one burns 10% of the value of the house in transfer costs. Buy a house because you really want to settle there, and really want to make it your own place. That's the only reason to buy. You're not saving money or putting your money in an "investment." It's a place to live and call your own- which is awesome in its own right.

@@CliftonHamilton I think you hit on an important perspective. Do you focus your life around maximizing your earning potential, or put down roots in a community where you have family ties, friends, overall the kind of support systems that can make your life easier and more enjoyable?

@abcd108923 Like another commenter you imply that you can just pick up and go from a rental. But most landlords require a 1 year lease and you either cannot break the lease early or you are penalized heavily for doing so. So unless you time things right you don't really have the flexibility you imply.

I am in CA, and typically for lease break the penalty is 2 months rent. Let say, your rent is 3k, so 6k as penalty. Companies pay a considerable relocation bonus to account for that (in the order of 20k or similar, though taxable), which is more than enough to compensate for penalties. Some landlords are also lenient enough for a lease transfer (with less charges) if I can supply a new tenant. However, I am talking about tech industry, which is considerably good paying in US.

if you might not want to stay in a house then sure dont buy yet, but thats not apples to oranges.

What if it costs more to own than to rent (as in almost every city in America right now)? If we're talking about low incomes, why would you encourage them to pay more for something they obviously cannot afford?

Moving costs and rent increases are not phantom costs. They are at the forefront of a renter’s mind. And these costs today still pale in comparison to how much money you will spend buying a house, especially if you’re really weighing the cost of moving vs the amount your rent is increasing.