Why It's Stupid to Buy a House in 2024 

I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.

So my wife and I have given up on the "American dream" of having a house. We're taking the money we saved and leaving the U.S... good luck to everyone still trying to give it a shot here.

Don't buy, it's dumb right now. Find another place for 6 months. You're being forced to move anyway. How is the landlord making up for it?

Can you explain cash flow for buying a primary?

I tried renting my paid off house. They trashed it. Even had a management company. What a joke. I ended up selling it and downsized in 2016. Right before all this real estate mess. But my sold house is now worth $500,000.😂😂

I’m closing in on my retirement and I’d like to move from Minnesota to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways.

You need to leave that house asap. Mold spores will be in all your furniture and possessions. Get out now. And have your renters insurance replace all your stuff and pay to put you in temp housing until you get a new place.

Great video. My wife and decided about a year ago that we were going to move our family to a more liberty and family friendly state to finish raising our children. We are currently under contract waiting on the seller to finish up some items. We fully expect that the value of our property to most likely drop. Moving our children to a safer and nature focused area was the main decision maker. Owning a home used to be a long term thing that is the mindset we are bringing to the table.

You don't need to buy something just because things aren't working out where you're renting. You can always just rent another place.

And if you didn't wait to buy, you would have 2,3,4% interest rates. Lol. 😂

national average 30-year fixed mortgage APR is 7.06%

If that house that you are renting is full of mold and my children and myself have gotten sick from it, I would sue the hell out of them.

Buying a home depends of an individual situation. In my situation this is the best time for me to buy. I hope your situation are resolved soon. Good luck.

I hope you get all your money back. Hope you guys get well. Get yourself and family a good naturopathic practitioner to help you get well. I lived in Florida for over 25 years and had no idea my apartments had mold. Lots of headaches, sinus infections etc. I finally got a test from a natural doctor and sure enough, Lyme and mold. It took months on a detox plan, but I'm mold and Lyme free. I'm feeling better and headaches are very few.

Agree with the pros and cons. Its is unfortunate there are so many cons right now but it is a stalemate and we are about to win! Builders and sellers keep offering more incentives, which means the struggle is real. Dont get suckered into their incentives wait for them to accept defeat and cripple. Patience is a virtue.

You are literal proof that you can't beat the system. You moved out of the home you own to rent and make a profit, but by rolling the dice, you've now compromised the health of yourself and your family. I'm sorry this is happening to you. I hope you can figure out how to provide yourself and your family some stability and stop trying to beat the system. It's a losing game. It's set up that way.

If you plan on buying now Put down 20% and you’ll be fine Quit looking at houses as investment and start understanding it’s always a liability first. Last few yrs people have been lucky with insane gains, real world returns are long term Buy a good deal and the house that checks all your boxes Insurance will never go down again, be prepared for it to go up more and so will the taxes Buy or don’t buy, there will always be pros and cons. Be prepared and stay informed and be happy with your decision

Hi Travis, I hope everything works out with the mold situation. Mold poses a lot of health issues so hopefully everything gets sorted out quickly. Can you do a video explaining how you were able to generate so much in returns each month by investing in Treasury Bills? Are you still doing this?

I ask because, on a published RU-vid video dated July 9, 2023 you appeared on a Michael Bordenaro’s video titled ‘WHY Home Prices HAVEN’T CRASHED YET…Housing Market 2023’ and you said: 

 “I took my downpayment to buy a house and I bought treasury bills. Every month I get $250.”

 If that is true then that means you invested at least $60,000 with a 5% return divided by 12 months (annual), which would give you the $250 monthly returns that you mentioned in that video. Can you confirm this to be the accurate amount you invested and commit to doing a video series going in-depth about innovative ways for people to wisely invest during these tough times? 
I think it could be an interesting video/series. Thank you.

That is Bonkers Travis! You and the family stay safe, and get out ASAP! I know people who have gotten hypersensitive to mold after an exposure like that. I have some boxes of 3M N95 masks with exhale valves if you want them!

I have the best advice in the universe for you. Trust in Jesus as your Lord & Savior. His crucifixion broke the curses on our lives that sin produced. You will have no genetic expiration date because of Jesus’ substitution in your behalf. You become a brand new creation in spirit & that God in you will take over these circumstances

You have to be an optimist to think it is a bad idea to buy right now. Do you really think things are going to get better?

Lol not scared of the coyotes because he’s been around realtors.

I’m sorry you’re going through this Travis. Damn shame the landlord was playing with you and your family’s health. Good luck with your home search 😊

Mold is a major issue. You did the right thing. Now if you win the lawsuit you can definitely afford a home easily. Now isn’t that Bonkers 😏

Find another place to rent until your comfortable buying.

Ugh I’m sorry you are dealing with mold. Can you do a video on mold? It’s a concern of mine with buying a home. Can you get an expert on the show regarding what to look for.. maybe someone who does inspections.

Travis what's the update on the house you submitted an offer on?

Some people don't have a lot of time to be waisting on rates to drop just buy the damn house

Melody and Travis drop a video on the same day? Bonkers!

GET OUT OF THE MOLDY HIUSE NOW! I had to spend $100,000 to get well. Get out! Get a short term rental.

Welp. That mold is possible grounds for lawsuits. Depending on your state laws and regulations.

Ask for a month to month since so many places have vacant units

Whatever you decide, I Hope you WIN

Depends on the area. Here in NoVA, the prices have stayed steady and the competition is still high. We been outbidded at least 4 times so far from homes ranging from the 70s to early 2000s. It's tough out here and the inventory is low :(

Rent short term Mold kills

renting sucks and i get that you dont want to move with a family and all that, but you said it. explain this to the family and say "hey its lame, were gonna have to move somewhere less than ideal for a year or maybe two but after that we're going to live in an awesome house" as long as you dont have to move very far from your kids friends/school and you alls work, it wont really change much, it'll just be annoying for a couple weeks and cost a few thousand dollars. much better than locking in a few tens of thousand loss, unless you could find a deal right now. but so many better deals are likely to flood the market in the next 2 years, so i'd rent

We had to escape mold twice. Make sure the home was built at least after 1985. That is when they started using a plastic seal between the foundation and dirt. It's better you rent until you figure the health issue. You may be moving into another moldy environment. Sorry

You have kids buy the house 😊

We are in the same boat as you. Constant respiratory ailments seemed to indicate mold in the rental we are living in. So we are trying to get out too. It's been soooo stressful! It is hard to find someplace else to rent that's affordable for our single income family. We finally decided to live in a nice camper for the summer. We'll see if we can find anything before winter sets in.

You hang out with rattlesnakes to calm down?? Sir you are a bada$$

Rent month to month until the crash.

Both prices and interests are NOT going down, the odds of that are small. Buy the right house so you stay long term and stay no matter what the market does. You only lose if you sell at the bottom. Enjoy making your landlord rich.

T enjoy your in depth information, telling people not own house not right. Like timing stock market. Every day you wait to own , people are losing to inflation. 6 million houses short stock in country. In 1970s real estate tripled = value of dollar = 1.00 = .33 cents

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2025. As a backup plan, I've been thinking about purchasing stocks. What advice do you have for choosing the best buying time? On the one hand, I continue to read and see trading earnings of over $500k each week. On the other side, I keep hearing that the market is out of control and experiencing a dead cat bounce. Why does this happen?

Right, I am stupid

Was it C-PVC? The stuff is garbage.

Will it be good idea to buy a house now or wait till the end of year. I have been saving and with my inheritance I can find some under 400,000and live comfortably. Are people scarred because of fed rates or buying a house in full and it depreciated on value. Love your show

Forget the solid wedge, and cash flow, move asap, and get another rental. I have never bought a house to get rich, its for living our lives, and yes, pride of ownership. The equity, and richness comes later. You got to live somewhere, move asap.

The tax benefits on the interest is pretty minimal if your buying a normal house / not super expensive house

Travis, for your entire life, the FED has been lowering interest rates from 20% down to zero. Then they started printing money to put a floor under high prices. The game is over. Home prices could fall for many years to come.

Mold is no joke... Do what's best for you and your crew

I own in Arizona but want to move to another state. Would you, will you sell your paid off home or keep renting it long distance?

It's like that movie " pay it forward". You help someone and they help another person and so on... It's a beautiful thing:)

Finally found someone, in close to my scenario, with solid advice!

Don't let the lease be a deciding factor. I'm going to break my lease and pay whatever if I find something. I agree it's important not to rush in!

GET OUT OF THE MOLDY HOUSE NOW! Read below. Get a short term rental.

if you are renting the State has laws in place to protect you, by initiating a escrow account with the County. The property I am living have a similar problem, I am preparing my paperwork and photos, good luck , check the state laws and if possible a lawyer

1.2months of inventory in my city. It’s still a sellers market where I am and some other places. Know your market.

One more, if renting, how can you rest if you shelter in others control?

Bon-kers

You won't miss the boat signing a 1-year lease. Could be a blessing in disguise. God forcing you to be disciplined!

What is wedge ?

I guess this makes sense if you treat your house like a stock. We bought our home to actually live in for a while.

Bullshit. Buy a new house. Builder will work your rate

How do you think the elections will effect the housing market ?

It’s not stupid because home prices are not going down despite higher inventory. If not 2024 then when?

Good stuff! Keepin me grounded Travis. I appreciate you and enjoy your leisure. Putting an offer this week. But it will be the last offer we put in this year.

🎉🎉🎉 I really hope that your offer works out. You deserve a great home for you and your family. Blessings Travis, Carlos

Move but get a longer lease landlords are really Hunger now!

Thanks Travis, I never miss a show. God bless you, your health and your family

I'm getting Michael Bordonaro vibes here haha!

Stay strong 💪. Do what's right for you and the family. We listening no matter what!

Travis, have you seen those high chairs people put just in the water to sit above the water and fish? You should get one of those, they look like life guard towers. Sorry about the MOLD, Had that happen in apartment before it was awful. Your 9 reasons not to buy are sound, but they are the same no matter what the market is. It is great that you use your personal experiences to do this but a lot of it even in a good market these are the fears. The anxiety of owning a home and renting are both big. I mean at any given time a land lord can sell their property and new owner comes in can kick you out. Your lease you sign is only good for those terms and if rent goes up which is has, they can either raise your rent to match or kick you out for someone who is willing to pay and then you have to move. Also, foreclosure can happen in any market. You need to prepare for that at anytime. People don't just lose jobs because of recission they can lose it at anytime. I lost mine in a great market, it sucked. As for the good reasons. 1st I would disagree with your 1st reason not to. I recently went to an event for First time home buyers. If you listen to the lenders and investors who really focus on strategy then why can't you play? You can buy now a primary home with 0% down no PMI and if the market does come down, you buy another one. It doesn't hurt your buying power because you are going to rent out your other home, or if you listen to these people you buy a multi unit duplex quad whatever with 3% down and then buy again in a year with 0% down. I would disagree that just because you buy now you can't play if in lets say 2025 correction happens. The new Benefit to buy now is that you can have rental property and buy your dream home at discount, right? Next, you say odds are that your are locked in is a bad thing. WHy not for a benefit of buying is that odds are if you are wrong, and you buy now and rates go up you have a lower rate, or odds are if you buy correctly and over two years or 3 years there is some appreciation you have some equity. Same thing people said in 2021 just wait prices can't get higher they will come down, well prices still went up. You are right the tax advantages are great, especially when you own rentals. Doing the strategy of housing hacking is a beautiful thing for every first time home buyer!

On another note leave those sharks alone !😤

There must be one pro reason.

Wow! Mold is horrible. The landlord has to fix the foundation problem and the plumbing leaks. The landlord will get sued. Plus the water issues is only going to cause structural issues.

Agree with all your cons. However, we KNOW the Fed will continue to print and devalue the dollar significantly so from that perspective we lock in the cost at a stronger dollar. Given enough time, the dollar will definitely weaken so if the time horizon is long enough, the payments become lower. Got to find the sweet spot between the 2 points of ciew

Finally!!! Someone explaining what the rub is! If you have lower rates, it will be because the economy is going down, so your home value is going down. If you’ve only been paying your mortgage for a couple years, you’ll own 98% of what you financed and home will only be worth 90% of purchase price. So you’ll need ~8% of existing mortgage as down payment to refi. That could be 80k on a million dollar house!

Bonkers

is that a beach in Texas?

Hopefully it isn't the mold making your family sick and it's something that will go away soon. There are only certain species of mold that are harmful. You may want to get the mold tested...as a CYA paper trail, just incase it's dangerous mold. It could also be that your family has an allergy to the mold. Anyway, good luck...I hope it all works out.

I went from renting a 3 bedroom house for 2350 in the Treasure Coast in FL which cost 2750 per month all in (electric, yard, water bills) to renting a 2 bedroom brand new apt, with a pool, gym, clubhouse, offices(conference room and mini 8 min conference rooms), party room, tennis and basketball courts, etc for 2100 all in + (68 in electric). Staying on the sidelines and saving money for an opportunity to buy. Try renting a townhouse Travis w. A option to break your lease. No stress with a house, everything new and although it's smaller, I strategically packed and didnt unpack things that I don't need for the apt.

What if you sell while prices are still high, have a big down payment from the sale, and buy a lower-priced , lower-taxed house in a rural area, maybe getting a loan for less than $90,000? Is that dumb? (Asking in earnest… not being sarcastic.)

just find another rental

Mold? Bonkers, in the worse way. I hope y’all get that situation remediated quick. That’s just terrible for everyone involved. With all the flooding going on Kingwood, sounds like mold needs to be high on your priority list when inspection time comes.

I hope you win Travis ❤

If you all are continually sick because of the mold, I suggest you move out asap. Your family and your health is more important. Hopefully you find a much safer home to rent for the time being.

i want to low ball a new build. thats been sitting there for 9 months. would it be a good thing to do now? also my question is. would it smart to sell now. before the house value goes down. we have very good equity on our house. its so tough to decide what to do with a family.

My husband was diagnosed with Dementia. We lived thousands of mi from family. Selling high enabled us to move closer to family in a very high price housing area. We have a large down payment, so we will have some equity. Praying that you get your family out of that dangerous rental.

@realestatemindset Did you get the mold tested to determine what type of mold it is? It's important for you and your family's health if you haven't.

Travis. Look into zero carb homes. Genetics respond to the environment they're bathed in.

Sorry to hear about the mold issues Travis, wishing you and the family all the best. Also checkout Julian K, you look like you could be Ryan Shuck's sibling.

Find a short sale. REO. Real estate owned by the bank.

Love the truck!!!

I live in Houston as well.. Which beach access point is that? i assume you are in Galveston

Yo brotha where'd you get the shark rack made? I have a couple yaks, used to surf fish east Matty often.

Dang man, I hope you and your family fully recover with Godspeed

Buy in winter

I'm adding your story to my long list of reasons to never own a slab house

Did the landlord know about mold?