I believe the retirement crisis will get even worse. Many struggle to save due to low wages, rising prices, and exorbitant rents. With homeownership becoming unattainable for middle-class Americans, they may not have a home to rely on for retirement either.

I’m in Colorado and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $380K. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $75OK+ now. Wild times.

I’m so overwhelmed. I don’t think I’ll ever buy a home

Living without a partner or middle-class parents with a home you can stay at makes this game way too hard.

Wife and I make about 140K a year combined. Luckily we bought our house new in 2015 which cost 259K at 3.5%. The same house now goes for over 500k in the area.. Our mortgage payment is under 1500, and that’s high to me. Hell, we took out 60k in home equity credit for home improvements and our payment is still under 2k. I can’t even imagine how people are affording 3k a month mortgage. I feel bad for folks trying to buy now. Especially for younger people who just want a place to call home.

When I was looking for a house. I paid off all my debt. And calculated how much i would need more or less for an emergency fund, for at least 3 months. I found and bought my repo house when I was single. 3 yrs later i was diagnosed with cancer. The following year, after my diagnosis. New management came in, and i lost my job. I couldn't look for a job, due to going back to the hospital and Dr's to check for any remaining cancer cells. That emergency money came in handy. I advise to have an emergency fund. You just don't know what life is going to throw at you.

Do you guys like me using a price point like in this video or a salary like in the previous video?

I'm hoping there will be a housing crisis so I can buy cheaply when I sell a few houses in 2024. 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?

Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.

In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.

My husband and I have been going through the process of purchasing for the last 2 years. It’s been rough. We’ve been through multiple types of lending. USDA guaranteed and fha. We got approved for 265,000 just under my husbands credit and income. May not seem like a lot but with interest rate for us at a 6.5.. that’s an additional 400 dollars added. We find that to be comfortable and not borrow above what we can afford, it’ll be 210-220,000 for us. Unfortunately in our area, we can’t find anything in our range, even for our approval of 265,000. I graduate from dental school this week and I hope I’ll be able to have a descent amount of monies to add to our household. My husband isn’t in a rush to buy, especially with our rent increased it’s cheaper.

I’m making around $160k and was initially excited, then I realized there are no houses under 500k in my city lol

100% agree about making your own mortgage calculator. I even made them for friends and family.

My wife and I made over $220k when lived in California and we still too poor to afford a home. Out there (LA area) homes are $800k+ avg. I have no idea how people were buying homes for those prices. They would need to be making ~$370k to meet the 50-30-20 rule. Wtf. …Yes, we left the state.

People don't comment enough about your humor "home ownership is as unobtainable as it is for me to receive my dad's love and affection and respect" 😂

Now do one for groceries, you know.. goals for us little people.

It's crazy thinking about those numbers! I can't believe people are out here paying $100k+ over asking price (according to the VA/DC reddits.)

We're currently leasing a SFH in the Atlanta Metro. My neighbor just listed his home at $415K. The monthly mortgage will be around $3K, and the house we're leasing is $2100, and it is bigger and renovated. The neighbor's home was just purchased for $210K in 2017. A lot of these homes have to come down in pricing in most Metros for them to make sense.

My wife and I are in our early to mid 30s. We bought a home for 560k in 2022 with 10% down. We have one kid, who is in daycare. Together we bring in about 225k-250k. We eat out too much, mostly at Chick-fil-A and Starbucks with is death by a thousand cuts. Gotta get better on that. Anyway- we’ve done well thus far in’s life but things can be challenging to a degree. Our mortgage is 3600/month and childcare is 1200. Nuts. It’s crazy to make good money and still have to really watch it. Groceries are insanely expensive. I feel for people looking for a home on 70K salary. The market is too inflated and it’s frustrating to watch

I guess I'll be renting for another 5 years. That's fine, as long as I am happy. All the money I am saving is in a high yield savings account so it's fun to watch it grow.

In FL right now, if you buy a newer home, you’ll be paying $7k-$9k a year easily in property taxes on a $400k appraised home. Add in another $3k+ for insurance.

My mild depression just sunk to major

Production value really increased. Nice job!

Me and my wife just got our first home for 480k. It's possible if you have no debts at all. Thank you Dave Ramsey.

Where was this video in my early 20s? This is by far the most comprehensive and realistic house affordability guide I've ever seen. You did good work you should be proud of this video.

some people really need to move. i make over 140k and just bought in the rust belt, and still budget as best i can. people wanting to live in california, new york, parts of florida, arizona, oregon etc. but not making over 110-120k or so... i'm sorry but please either significantly up your income, or move somewhere cheaper. most people don't have a magic pot of money that comes later in life (most of the time inheritance isn't a lifelong "golden ticket") so you really risk needing to work until you die. it's a sad reality and before i hear the "but my family!!" comments...shame on them for guilting you to live a life of being broke and not able to afford anything so that you can live in the same place where they bought a house for pennies on the dollar. i LOVE california but the prices are 1000% illogical and indefensible

Roughly why I have said housing prices can't stay like this. Unless we shift towards almost everyone renting. Which I feel like is what may happen over the next 10 years. I'm glad we got a condo when we did. But I really just wish we could go back to 2015 pricing.

Man this example was perfect. This was right at my income level and need to buy before December. I wish I could wait a bit longer but circumstances have come up. Hopefully things level off a bit more after the next rate hike.

It's very discouraging, indeed!! But, because these "new" prices are sooooo unstable and certainly NOT sustainable, I feel that it's only a matter of time where things gotta change. As always, thanks for sharing your wisdom with us!

I bought my home several years ago for 400k and my monthly mortgage is $2344. I have a renter who pays $1k a month so it offsets part of the mortgage. In another year or so I will be in a financial position where a renter is not needed. It is one way to go about affording a home and I know a ton of other people here in the state of Colorado do the same thing so they can afford the mortgage. My home is now valued at 620k so it was a good buy

Remember people, this world is never setup for one person to be alone, it's meant for at least 1man and 1 woman working tirelessly together to meet a goal.

Thank you for making this video bruh. I am amazed how people are buying 600-700k houses. Even in a small town of Idhao(Idaho Falls) houses are 450k + !! it's just unsustainable!

we wish we found something for 400,000 in California, out here the average price is 800,000 !!

I would highly suggest thinking hard about this before buying. I make $135k per year and our $420k house is tight to pay and we started with absolutely 0 debt.

You forgot school tax. In NY I pay $10k for the school and property tax combined. In FL I pay about the same in taxes as NY but utilities are higher in Orlando and then there is the gardener $180 per month, HOA $100 monthly, and the endless tolls about $60 monthly. I’m going to rent soon cause it’s just too costly to buy and maintain a home.

Best way to afford a payment on that big of a purchase is to be out of debt. No student loans, credit cards or car payments.

To put down 3.5% on FHA mortgage on a $450,000 you need a little more than $15000. Closing costs will be another $4000-5000. Maybe another $8000-10000 in initial repairs. Just a decade ago, $8000 could get you into a decent home. Greed will crush the market again and when values go down 60-80% in some areas, I won't feel sorry for people who bought while overpaying at the peak, shifting the peak even higher.

Javier. I make 149k a year as a FedEx truck driver. My wife makes about 48k a year, and even we cant afford a new house here in Las Vegas. AND i paid my house off, and the house is worth 311k. But we dont want to sell, so we can rent it out later. Could you make a video of how to rent your house out and using that income to buy a new house? Thanks! Love your channel btw

I love the takeaway here. If you need a house or just want one that badly, go for it. But if you can afford to wait you may be glad you did.

My county in Texas is 2.14% for property tax and my house is around 400k. my property taxes are like 8900+/year. I think 6000 is quite conservative for a high interest state. That extra 3k adds a lot to the monthly payment. Check the property tax in your area first!

I live in nearly a $600k home. Everyday I wish I didn’t. If I ever lost my job I’m screwed.

Nice video!!! Be smart enough to know that nobody got rich from salary. Being successful start from mindset. Money invested is far better than money saved , when you invest it gives you the opportunity to increase your financial worth

So single people either need to make 6 plus figures or find someone to marry?!

Can you make a video on can you actually afford a mobile home?

Love your videos! Literally answering questions I just started asking myself lol

Thanks for the video, from Surprise AZ.

400k is rookie numbers for Canda. Aerage house is upwards of 800k.

Insane my wife and I bought our house is 2020 for 625k 5% down with 3% (ish don’t exactly remember) interest. Our payment with everything is $3500. I wonder how much more that same amount would be today

I live in California and putting $25,000 down on a $400,000 house, my payment would have been around $3,000 a month. My rent is $1800. Saving money until I'm ready to buy.

Lol I live in NY, my property and school tax are around 8000 dollars a year on a $177k mortgage, total payment with PMI taxes and the loan is around 1600

You are right about buying a house, it’s something that we don’t have to worry about landlord. This is why we decide to buy a house after living 10 years in an apartment. Even though with 7% interest rate, we pay the same as amount as renting an apartment. Just buy a small house. Don’t need to be huge, big, big backyard, just something that fit 4 people. 😃

One of your best presentations! Very helpful for all persons looking to purchase a home! Thank You!

Fun facts from Canada: Average home price is $816k (let's round down to $800k for simple math) Minimum downpayment required (regulated by government) is $25k (net amount accounting for mortgage insurance added to mortgage balance) Mortgage amount of $775k @ 6.09% rate = $5k/month Add property taxes and insurance brings $5k/month to $5.25k/month If $5.25k is intended to be 30% of net income, then the income is $17.5k/month, or $210k/year Canada has much higher income tax rates than any of the States (even higher than California), so this is a pre-tax income of $370k/year Average Canadian income is $59k per year This is AVERAGE

I just wanna buy a 1br apartment. I don't want my whole existence to be paying off my mortgage.

If ur grossing 7k a month, u can't really afford the hypotherical budget u have in your example, since the total monthly expense is 5473 but the 7k after tax would be around 5250 if assuming taking home 75%. Even if assuming taking home 80% it wouldn't really be feasible without serious cuts to the needs category.

Javier I live in Central Texas and looking at a house and found that the property tax’s are 3% in that city I am looking in So on a 400k house the tax’s are $12k a year in tax’s.

I'm glad he said 166k since we just bought 400k + house and our house hold income is actually just over what he suggested. But we qualified for a 750k loan. Thanks but no thanks.

If you have it in your state you guys should look into NACA. They have 0 down, 0 PMI, basically 0 closing cost and you can buy down the interest rate to almost zero

Nicely done! Very easy to understand how important this advice is and how to implement it into our lives. Thank you Javier!

Do a video on surviving the first few years being house poor. What are the pros what are the cons? Thanks great info new subscriber.

We’re lucky we bought our home in 2021 with a 2.3 percent interest rate. House was 209k we pay 1,140 a month. And we net around 100k together. Ima hold this house til it’s worth 400k if I Ever Think of selling. It’s currently worth 280k

😂okay, high property tax is 6000???? I didn’t know, I live in florida, 400k house WILL run you to 9k per year!

Wife and I clocked in 135k last year and qualified for 500 we tried looking around 400 for 6% interest only thing was we in Cali 😔😔 unless you wanna commute 2-4 hours everyday it’s basically game at this point unless we double or even tripple our household income

California is actually a low property tax state but we still pay over $5000 on a home that was acquired for $490,000

Gotta make 150k a year to net enough to buy a 400k house. Absolutely ridiculous

Parents basement it is…

So glad I bought in 2016 before CRAZY TOWN took over.

Property tax for a 400k house in southwestern CT house, tax is 14k per year

I just lost 4 times to full cash offers. Got second place for 3 of the homes. Was planning to pay 35k over asking... 815 avg credit, ~1/2 downpayment, 475-500k house.

This is scary to hear but not surprising for me. I’m so glad your content helped me understand what my family can afford and we bought last year. We aren’t house poor, so I want to thank you for all of the content that you put out there because a large part of that is because of your educational media. Anyways, I often say and wonder how people do it nowadays. I’m extremely fortunate that we aren’t house broke and make decent money as a household cumulatively but I know that what my family makes is above the national or even city average in my area. I genuinely wonder how most people get by and am sad for them. Sometimes when expensive situations come up, I thank my lucky stars that it isn’t the camel that broke our financial backs due to our position but how others do it? I’m not sure. It almost makes me wonder and think that maybe owning your own home or property will not be a common household privilege anymore with all these investors and prices. Everyone was waiting for this big crash but instead what we got was a small decrease in price and double/triple interest rates not to outweigh the price change. It’ll either be very slowly over time or it will never get better. I’m so glad we didn’t wait from the fearmongering that media puts out to buy because truly the best time to buy is when you can afford it, period.

So to live comfortably at current interest rates your average house price to income ratio needs to be about 3:1, house price divide by gross income. Given that most are now 6-8:1, everyone is having to buy at prices far above what their income is comfortable with.

$6,000 property taxes on a $438K house? Try $9,000 in Texas and that was with Homestead exemption

Barbara Corcoran explained that you don’t start with the big house. You start with a small studio and keep trading your way up to the big $400k or more house. That makes home ownership possible even for people with smaller incomes.

Making 100k ain’t enough in this world now. Especially buying in this environment. Pretty sure there’s a correction on the Horizon. Especially since this is the Fall/Winter house season.

I like how you broke it all down. First time home buyers should watch this video to get a reality check. I'm extremely happy that I purchased my Los Angeles home in 2011 for $285K and later on refinanced @ 2.85%. My monthly mortgage payments (including property tax) are only $1,665/mo!

We are moving for my wife's work. Just graduated with her M.S. RN. Looked for a house to buy in this tourist area where she grew up. Been following the market for a few years. Right now supply is limited and buyers are desperate. Doesn't help that Airbnb's bring in over $50k a season so there aren't any long term rentals. Ended up lucking out. Rented a house from a friend of a friend who was moving for the military. Now we are going to keep saving to buy land and build ourselves a house. I can build a house for 200-250k that is worth 400-500k in a normal market 750k in this market. Then I'm going to build some small cabins for short term rentals.

Thank you, you are always very honest and informative 👍 😊

Javier, I love your channel, and appreciate the down-to-earth approach, but some of your comments have me questioning whether I should cry or laugh. $6K for property taxes is **not** "high" in most of the US, regrettably. Here in FL we pay an obscene $12K a year (yes, I said 12 THOUSAND) in property taxes for our house. And it is a regular house, not a McMansion. You pay about 2% of the total price. And houses are usually in the $600K to $1 million range in South FL. And even these crazy figures do not buy you that much house these days. There are 2200 sq/f houses selling for $1.2 million here. So you do the math. I WISH we were paying $6K in taxes! Add the insane insurance premiums to the mix, plus hurricanes, and 115 degree weather on a daily basis, and one can not help but ask "why on earth would anybody want to move to FL today?". There is a reason why we do not have a state tax system. We MORE than make up for this with our property taxes and insurance rates. In fact, I assure you that most home-owners that live in states with state tax spend less money, overall, than anybody who owns a home in FL. This is NOT "paradise". More like hell, and going by all the temperature records we broke this year, I meant that in a literal sense as well.

Hopefully we have a spreadsheet to work on you say?!?! Bro, I have YOUR official spreadsheet! And it's very helpful.

Taxes and Insurance adds $400 per month additional to my mortgage. It is the rising inflated assessed value that is the real problem. Residential rate is flat rate so to increase taxes they inflate they value of your home every year. You can appeal get couple of hundred off but next year they will get you back X2.

$15,000 in property taxes on Long Island NY 😢

This is why I think, even though reports are that mortgages are going to very un-risky people compared to 2008, the fed has been open they are hoping job loss can reverse some inflation… if people lose their jobs with mortgages this expensive, rapid contraction.

Bought my first house in 2019 for 250k. Everyone thought I was crazy as I had just graduated college and only made 60k. “Wait for the market to drop” they said. Spent my entire meager 15k life savings down for a 3.5% down payment + closing costs. All my friends who though I was stupid then now sit around and complain that they will never afford a house…

I live in Massachusetts. I would love to see a $400,000 home.

My personal Hypothetical is interest rates will go to 9%, Q1 & Q2, then will drop to 7% Q3 & Q4 2024, lastly 2025 Q1 5%-4.5%. Interest rates won’t go below 4.5% for at least 15yrs.

I have the house and can confirm, it’s not affordable on a $100k income

I really should of been saving for house starting since 2nd grade

I would be ecstatic for a 1.69 tax rate living in Texas. Some of the new neighborhoods have a 3.41 percent tax rate. Which would be 13,600 per year on a 400k house.

Thank you for keeping it REAL. 🙌🏽

Asking ChatGPT your specific situation will give you a great breakdown. Why not use AI if available.

Sofi mortgage rates are 5% with good credit. We will be back to 4% within a year. Hopefully with more inventory to get prices down another 20% nationally.

the conclusion needs go be heard by the masses

I’m in Wisconsin. I pay $5k in property tax for basically no land. My house is a 1956 ranch, 3 bed 1 1/2 bath. But, an amazing school district and everything is 5-10 min drive. So I guess that is what I’m paying for. 😅

Here’s food for thought: Illinoians think $6k is cheap for property taxes. Average in my area outside of Chicago is $9k-$10k. Some suburbs of Chicago are $13k and up for a $400k house. It’s absolutely horrendous how broke our state is. We also pay income taxes as well. I wish we could move but my job won’t let me move out of state. 😭

In Connecticut $5000 is the avenge property tax on a $225,000 house 😂😂😂😂

The numbers are right, also have to include the pitfall if your taxes go up because property value goes up so the escrow can easily jump 400 -500 a month

Buy a duplex, rent one unit

Im here just for the shock vaule of learning how much interest really cost you. I was blessed enough to get 1.5% (lucky situation happened) can't replicate.

More people need to watch/learn this

I bought in late 2015 ,texas has homestead tax program when u first buy. I think it saved alot of folks plus i think governor passed something recentyl to not invrease our taxes too much cuz of cost of living. Lets just say my payment is low af