Imagine being paid enough to have extra money to save. must be a boomer thing

I was going to laugh but then I related way too hard.

Ben Riseman lol

I choose homelessness. I saved a lot of money being homeless for 3 months. I worked for uber and Lyft to stock up cash on a car is over priced and saved enough to buy a company truck for my business and RV to live in.

Cheap rent is a form of slavery. Because they WILL add more work and if you don't do they will kick you out.

Yeah, I think they may have seen those click-bait Craigslist ads that look like they're for a whole house but are actually seeking roommates for a house. Zumper says the average, as of August 2021, is $4,750, which is a decrease of 5% from last year.

I think their calculation is still valid, but there are probably no $600,000 single family houses in SF. That would be more like a tiny studio probably haha. They should have said "home" (regardless of studio/apt./townhome/house) instead of house.

@@maria-wu7us I think they should probably do a better job of citing their sources. Love the channel, though!

And from a financial stand point it makes no sense. Why would someone who bought the house for 600,000, rent for only 1000 a month? The property taxes alone are going to be crazy high and might even be more then the rent. Plus don't even get me started on the home insurance and if they still have a mortgage on the place.

@@piepiepie57 I agree that they could have cited sources for this and explained it better but the PRI they discuss is real and it usually accounts for the complete cost if home ownership including taxes and HOA. It compares that to the price of renting a similar property. So in cities like SF it would be cheaper to rent than buy. From what I've read, a higher PRI would be beneficial for real estate investors since there would be higher demand for renting in that area. But the higher the PRI, the harder it would be to realistically profit from said investment. But it would be interesting to understand what the average landlord looks like. It depends whether they operate independently or are a larger operation which is what you see with a lot of those new apartment complexes 🤔 Also, real estate is an investment and I assume the goal is for rent prices to increase as the value of property in the area increases. It's not uncommon for your rent to go up by $100 or so every year.

Me too lol

Use a FV calculator online. You can look at the home prices in your area and their historical returns. Run the future value to see roughly what it would be worth. Then take the same amount of money you could have put down on that house and put it into the same FV calculator. In the payment portion put the difference between your rent and all the costs associated with owning that home. montage, property tax, utilities, insurance, etc etc. See what that will be worth in the same time period that you could have paid the house off in. Theres your numbers.

Do ur homework lazy

@@valueStocks it´s more fun when 2cents "run the numbers!!!" ;-)

@@valueStocks could you please do that for some state?

Ya try $1.5 mill lol

Also, for a 1-bedroom that would be a million to buy would be more like 3k per month here in SF, so the actual ratio is more like 30-to-1. I'm not sure what bozo claimed it is 50-to-1, but they shouldn't trust that data source again.

I came here to laugh at this. Also, show me anything for rent for $1000/month in SF. You'd be lucky to find someone willing to let you sleep in their hall closet like Bender from Futurama for that price. I wouldn't expect to find *anything* to myself for less than $1500/month anywhere in the bay area, let alone SF. You're forced to have multiple roommates for that kind of budget.

Completely of topic here, but it's the TARDIS!!

Lmao i was thinkin the same thing 😂

Maintenance costs are worse than people will admit. Sure, we can do a lot of the work ourselves, but when the furnace needs replaced, you end up spending thousands more than you expected.

The problem is that the same applies the other way around. If you're renting in a district that experiences an economic boom (people moving in, public investment or new jobs), the cost of living when renting increases much quicker when renting (after your contract ends it can be even +50% for the new one in extreme cases), while if you own your property, what increases quickly is the value of your property.

Oh yeah pipe bursting are the worse things if u don’t know how to fix a leak. I know people who didn’t and to fix a pipe bursting in the front yard was 8,000 dollars vs 200 to fix it yourself granted u know what ur doing. Then there’s renovating the space to fit your needs and decor and decoration.

no. I whine about them alllll the time. You’re never writing a check for some small amount. It’s always a zillion dollars 🙄

Nice! Good timing on their part. You just have to do it with strategy!

Ahh the sweet sweet student loans.

Buy a house and have two roommates alot of people do it and probably 5-10 years in their part of the rent would probably cover the mortage

How is the bedroom situation with 2 other roomies? One of you in the living room?

@@benwilliams2713 Two in one bedroom

Being debt free is so worth it! Keep up the good work. My wife and I have been debt free for a few years now and it's so great not to have to worry about money. We didn't even flinch during Covid. We didn't even have to touch our emergency fund but it was there if we needed it. Peace of mind is worth a lot to me.

@Life With Astrid Sometimes the issue isn't that, it's the regulations allowing where to build (many european cities have that problem, i don't about Edinburgh though). In most cities in my country we have serious overflated rent prices for a multitude of reasons, the 3 main reasons are: 1) That damn Airbnb 2) The "housing aid" given by the goverment (the average housing aid check is 100 euros, the month after the implementation rents went up by 100 euros average).

Life With Astrid it’s the same thing in London. Prices are ridiculous. You move out of London the houses are cheaper (they are rising) but then the train fares kill you along with the journey time.

I would need to move to a flat twice as expensive to get up to 30% ! (Unfortunately you can really see the affordable price)

At least Airbnb got a hit with 'rona right now, at least in some cities, some Airbnb landlords have put their properties on the regular rental market again.

Sheesh....... In India it's less than 15

I agree

👍

@@THEMATT222 👌

Yeah, they're good, but annoying at the same time. Can't watch them for too long.

LOL! Well, I guess we're in good company. We get the "PBS propaganda machine", on the regular. Always gonna be critics, I guess!

I think the point is that when property ownership is only accessible to the top 1%, it maintains systemic inequality and class divisions that are incredibly difficult to break out of. This is bad. That doesn't mean it isn't in an _individual's_ best interest to rent, but even so that is contributing to the brokenness of our current system. This will continue until we as a society come up with a way to eliminate inherited wealth and family legacies.

​@@hackel137 Rich people don't negatively affect your living, just because Beverly Hills exists doesn't mean that you're negatively affected from Nebraska. So it's nonsense to be upset about other people's success, at least it shows that it's something to strive towards. And this is important, because property ownership used to only be for the 1% in the 20s and 30s. Then it quickly grew to 10% as the middle class became wealthier, until the point where baby boomers had home ownership rates upwards of 80%. Preventing rich people from doing something just makes it so that you'll never be able to rise up, because you have nothing to rise up to. And if you're living in an era where you can't afford a house, then you'll just never be able to afford one, your production just doesn't qualify you to own one, no amount of redistribution of wealth will solve the problem if supply just does not meet demand. Unfortunately millennials have regressed massively from the boomer era but that's because they choose to live in expensive cities, which should theoretically be fine since construction workers will just build more apartments to accommodate just as they did from the 20s to the 40s, but most cities in the 21st century have passed so much regulation and laws that it's prohibitively expensive or simply illegal to build anything new, so massive demand from 3 million graduates per year is running up a restricted supply and rent/ownership becomes grossly unaffordable. The rest of the United States remains just as livable as it was in the 1950s though.

I did not get what you were trying to tell..🙄🙄

@@hackel137 You don't have to be in the top 1% to own property...

@MaGicTOWer Yes, everything you wrote is true! Winter can have its downsides. Actually, when I was a renter, my pipes did freeze in my townhouse once. But luckily, my landlord came to the rescue and was able to heat up the pipes before they burst. That's not a problem in my current house, because I have no pipes up against an outside wall. But anyway, I originally made that post last year. A lot has changed since then, like my property taxes took a huge jump, and are now equal to nearly two months of my net salary. It's like I'm going to work just to pay for property taxes. I plan to sell my house this year, and go back to renting. I'm thinking I'll look for a condo that someone wants to rent out. Because at least the snow and yardwork will get taken care of.

@MaGicTOWer Yeah, it sucks that I'll need to sell my home. I blame the voters, who voted in favor of a huge school levy. My state, Ohio, unfortunately doesn't have caps on the percentage your property taxes can go up in a single year. But the good news is that houses in my area have really shot up in price recently, so I'm gonna make a big profit. I've only lived where I'm at for six years, so I have no emotional attachment. Anyway, I want to go back to renting, so I'm not living in fear every time a new school levy gets put before the voters. As for getting a bunker....That's hard to find around here, and would be expensive to build. But hey, I'll just find a place with a basement! Close enough!

@ghost mall So....My comment was made a year ago. My attitude has since changed. I still don't like mowing the lawn. But nowadays, we're seeing inflation because of the government printing money like crazy over the past year. This becomes very obvious when we look at gas prices. Now I don't mind being a homeowner, because a substantial amount of my money is tied up in a hard asset. In fact, I'd be rather nervous now about selling the house and renting. All that cash sitting in my bank account from the home sale would become worth less and less. The government can't print more land, so real estate seems like a good bet against inflation.

I got an advice for you: Do not do any yardwork; there is no need for a lawn. Nature will take care of it...

@@xornxenophon3652 There's a problem with your comment, at least where I live. First, I live in a suburb. Code enforcement will send you a friendly letter if the grass is taller than 11 inches. If you ignore the letter, the city will come out and mow the lawn for you, and charge you $500. But even if there were no code enforcement, I would have to mow the grass anyway. The reason is because ticks hide out in tall grass. So, mowing protects you from getting Lyme disease. Even out in the country, people mow around their house, due to the threat of ticks. I live in Ohio, by the way. If someone lives out in the desert, like in Arizona, then they can get away with not doing any yardwork.

The process of buying and selling is miserable, as opposed to the fun and easy process of finding a rental place (which you might have to repeat a number of times, if the landlord decides not to renew your lease or raise your rent to a point you cannot afford), as well as having to deal with a series of landlords, some of which might not be great?

@@mariak143 Well put owning gives you stability. No one will kick you out, and no one can raise your payment.

no. “Putting more into retirement”. Right. When you retire, are you still going to rent? If you buy a home, do you have any idea how much a home will cost by then?

@@mariak143 I stick to apartments now. I never have issues. Like buying a house, you should know what you're getting into. But my lifestyle requires more travel, and no settling.

@@ErrorPagenotFound-ig1cy I like to move. Buying and selling would be idiotic when I move every couple years. Let's not assume everyone else we meet is ignorant, okay? Don't be that guy.

Or rent it out and become the landlord?..... if you eliminate this as an option you're not good with money. Buying a house isn't forcing you to live in it yourself. Millenials are being taught this all wrong. The choice is not mobile vs stuck. It is less mobile vs mobile.

@@beddythecorgi4269 now if you sell that house your subject to capital gains tax .

@@beddythecorgi4269 Yeah but now you're signing up for the burden of being a landlord. Many people are terrible landlords. Also, after all expenses are paid, you're making around 5-6% returns per year on average, IF you find a reliable tenant that sticks around. Plus all rent proceeds are all taxed as ordinary income. Investing in the S&P 500 gets you around a 7% return after inflation. Any gains are taxed at the lower capital gains rate. Not to mention you do ZERO work to earn that return, and you can sell the asset with little to no exit fees. (Try that with a house!) You just have to have the stomach to weather any market downturns and have the discipline to see the asset grow. If you MUST get in on the real estate action, investing in REITs are a good possible option without any landlord headaches.

@@beddythecorgi4269 Or just invest in REITS and pay 95% less on maintenance and legal fees?

Or dont move out of your house until youve closed?

lol

Yup, we're both Longhorns ourselves, Marco! Met at UT, actually.

Sam Houston grad here. I've toured the UT campus and it's pretty cool!

@@TwoCentsPBS do you answer these posts yourselves? You're kidding me!

@@gustavoonthetelephone2103 Yep! It's one of the perks of the job... love interacting with our viewers!

In Austin, you have to make about $200,000/yr and have $60,000 in cash to be able to responsibly buy a $300,000 house, which is on the low end of the spectrum.

Awww thanks Ariana! That means a lot to us!

As long as it works does not mean its the best option.

Love your channel 💕 too .

@@ZacklFair agreed

Way to say nothing

I live in Houston, too! *high fives*! I moved from Austin to Houston, and oddly enough kept my rental costs low by finding a cheap-ish apartment close to work. The commutes here in Texas are nightmarish if you buy a house - so glad I didn't, with all this urban sprawl!

@@SamianHQuazi hope you are enjoying Houston. And I agree with the commutes, I would rather rent longer in the city then have to commute from the suburbs.

I hear Texas people talking like that all the time. They say, "Texas is great! There's no income tax!" So I say, "What's your property tax like? How much does it cost to register your car?" They don't say much about that.

Haha within the first week of buying our house the water heater broke. That was a pretty big slap of reality. But usually people buy home insurance for the first few years just in case something breaks

You can always find cheap places to live in Houston but the commute will finish the job in terms of killing your soul. If you are a homeowner then you will pay a lot in property taxes. My buddy was just telling me that his property was 18k for his house in the Woodlands. I was like, “ I guess Texas isn’t the free state you thought it was. He moved from California and pays more in property tax than he did in income and property tax in California. Tough break. To be fair he lives in a newer part of the woodlands. He has to pay for that infrastructure

Against your advice I have made double my yearly income by selling short terms (unintentionally). The market is hot now, but who knows for how long.

Me too. People seem to be obsessed with buying. I'm currently spending 10% of my income on rent which leaves lot's of wiggle room.

You bet! ; )

I've never felt like I got my money's worth when I was renting. When stuff broke, it never got fixed. They didn't do pest control like they were supposed to. Rent got raised every year, until it became unsustainable to remain living there. And those experiences were common to every place I've ever rented.

​@@longbottle IMO you are throwing money away and building equity for another person. In my case, rent was 1200-2000 and similar house payments are 600-1000/ mo. Two scenarios: #1: I rent for two years, was out $1200x24 plus some utilities and lost deposits. Leave lease with nothing. #2: I buy with 0-3.5% down, build equity, sell at above market value two years later with 60k in profits... I did both of these scenarios at the same time....in my early 20s, no support, no degree, hourly wages. There are no excuses really. BUILD YOUR WEALTH!!!

At 22 years old, I’m just now getting my foot wet, I don’t think buying a home will be in my best interest.

Your dad is right. Your landlord appreciates your poor decision.

Eddie Wow it’s a poor decision if the tenants planning to stay there forever, making money for the landlord instead

Raffles these idiots are just gathering up trying to convince each other that renting is better than owning in the long run..

@@ErrorPagenotFound-ig1cy so please, run your numbers and show us that you are right :)

Honestly if I were able to afford a place, I would most definitely rent. I don't need a house/that much space to live in. I'm a single childless person. People fill houses up with useless junk. I've always said people are fooling themselves to think they actually own the house and that's the end of the costs of having one. Property taxes, repairs, appliances, furniture, paying for years on the house itself, utilities, etc.

That is exactly what I was thinking. Also you can't buy a cardboard in the tenderloin for $600,000.

It's $1000 per $600,000. If you can do the math an average house in SF costs around $2.5 million so $1,000 x 4.16 = $4,160.

@@brucewayne3141 Average one bedroom apartment is about 3500 right now. I live in SF.

So tru! Im saving up for a house hack right now!

@@liskh5 Dang man good for you!

I build houses for a living and honestly I see it all the time people buy houses that shouldn't. Or get convinced to buy a house that looks nice but is going to have major issues in the future it's not as simple as it should be. I'd recommend finding someone who knows what they are looking at if you don't before you make a purchase.

To bad school didnt teach us that....soo glad I learn photosynthesis...

John Smith 😂

i honestly don't understand the realtor bit, if they're tied to the property wouldn't each property be tied to a different realtor? Or you can just contact a rando realtor and they'll help you without fees?......can someone explain?

@@samaraisnt yup any rando realtor can help you for free and the sellers pay the commission!

Well you need to do work to grow the crops if you buy a farm so that example doesn't make sense

Dude, buying homes these days is for stupid ass bitches. You pay expensive prices on a beat down home, spend more money to renovate it, have to pay property tax on it, and then when it’s time to move, a hurricane blows it down, the city alters water source and you get lead in the water, or a ghetto ass neighbor moves in and the property value goes to shit. Sell and lose money and have to pay service fees to the realtor and lose even more. Summary: You lose Home-boy 😂!!! Rent and dip when the contract is over end of discussion, you’re out nothing more.

If you want to invest, invest in a business. That’s your farm example. the farms fruits pays out. A house you live in is a liability. If you’re going to flip houses, that’s a different story.

don't look up feudalism, it will spoil your day

Knowing I can move at the drop of a hat if the new neighbor moving in next door is a psycho: priceless!

Unless you move into a HOA 😱

Some landlords are ok, depends a lot on your communication skills and that you get to an agreement

@@cupbowlspoonforkknif putting money into something that are just going into the bin... not so priceless is it? If you buy a house you don't necessarily have to live in it, you can rent it out and move out yourself

Having to pony up the money for repairs and general upkeep yourself puts you in the place of your own landlord. It has its own stress problems. And as someone said, if you live in an HOA, it's often as good (or bad) as having a landlord who will control every decision concerning your house... With condos, your property might decrease in value because your other owners can't afford the upkeep and the building is getting dilapedated. In so much cases, you depend on others just as much as a home owner as when you're renting.

A lot of places have enough places for rent so you can move within the same zip code if you have to.

@CJ Spencer My career is here. The places where it elsewhere exists are ever worse in terms of housing costs.

@@Juiposa May you income increase enough to make modest dreams come true.

Same.

@@Juiposa The rest of the United States has a career too, it's pretty easy to both not have a college degree and still afford a down payment on a house in a rural county.

...like explained in the video, as long as we are investigating money during the time we're renting we'll eventually have a nice sized down payment for a home.

Weird. I've always been able to use free apartment hunters. Maybe that's just a TX thing?

I'd prefer to pay directly to the realtor. Otherwise they have an incentive to keep prices high or don't show you cheaper rentals

Boston is like this. You basically have to go through a broker to rent at all and you generally pay 1 month rent as a brokerage fee. I had to pay over 5k just to get the keys to a 350sqft studio - first months rent, security deposit, and brokerage fee. It was such a relief to move back to the Midwest after grad school lol

That's right. I'm in NYC and we paid 15% of an entire year's worth of rent.

And the cost will be hidden if it isn't explicit. The rent will be inflated if you aren't paying directly. Had this happen to us in Boston.

Sigh, Vancouver too expensive

Marc477 I live in Toronto #6ix😩😩

Yes, yes, yes!!! When the reality of costs for all the things that can (and will) go wrong in a house hits, it's just too late. I say rent until your housing costs including utilities are no more than about 20% of your income.

I wish that proponents of home ownership weren't in denial about the cost. I'm saving a lot of money renting even when my rent is more than my old mortgage.

no. The reality is so much different than the fantasy people sell.

no. Exactly people own a home for a few decades and make a bit of money and that becomes the narrative. The reality is what was the opportunity cost of that money and what has that home actually cost them over all those years. It’s like a person going into a Casino spending a grand winning 500 bucks and telling everybody how great they did lol

My rent is incredibly cheap. I have almost 300,000 saved up. Maybe one day I'll pay cash for a house, but I doubt it. I prefer renting

full time regular work is usually ~250 times a year. So its 500 miles a year (for 1 mile each way per day). Typical car operation cost is 55 cents a mile (can be much more for expensive cars or huge truck) (its not just gas). So that's $275 right there. Time value of your money (realized in the form of lost wages, or simply things you could do at home but hire out for instead, like take-out vs cook, maid vs DIY, lawn care vs DIY, missing out on a possible side hustle). IF you value your time in that way at say $20/hr and typical average combined rush hour driving speed of 30mph, that's 17 hours a years * $20 = $345. Grand total $620.

@@Mark-xj8bu So then take out the lost wages and then consider all vehicle costs - wear and tear like the video stated. You might have higher car insurance the further to work you have to drive. I have lived in three cities in two different states and all three times one of the first questions they ask is about your commute distance to work. Maybe you drive a corvette with low profile expensive road gripping tires - that will run up the wear and tear costs. Or maybe you own an old beater, much lower wear and tear costs. But, simple math - using the ~ 250 times per year, or 1 mile to work would be 2 miles round trip or 500 miles. Just gas cost alone (yes it varies wildly) I am going with $3.25 per gallon to be somewhere in the middle of the range on prices. We have 500 miles per year per mile distance in a trip to work at 21 miles per gallon = $77.40 per year per mile....assuming you get 21 mpg and since some people are sitting in bumper to bumper traffic....21mpg is way more than fair. I always lived close to work and about 4 miles on average. That is 4 * 2 * 250 = 2,000 miles / 21mpg (more than I averaged by 20%) = 92.2 gallons * $3.25 = $309.4 just in fuel....for me....in a car that gets better mileage than I actually did get. What if someone is driving only 10 miles to work, which is very close to work for so many people? That $309.4 moves up to about $775 per year on fuel alone....and an extra oil change. If you have any number of typical cars in the last 15 years you might need synthetic oil when you get changes. Your longer commute of only 10 miles adds an extra $85 oil change per year. Tires - again if you have any kind of low profile performance tire you will be losing a lot of their life just doing the boring drive to work and home. God forbid you commute 15, 20, 25 miles or more. It might cost you $1,200 for rubber on all four corners or more and you are going to get their much faster with 10,000 miles per year being wasted on that work commute. Tires could add $400 per year to that extra oil change and fuel for that 10 mile drive each direction. Now you are $1,260 per year and we still aren't counting possible insurance costs changes, other wear and tear (suspension, windshield being replaced from rock chips, etc). In other words, your argument that 3of11 was wrong based on his one assumption is weak. Considering he was actually pretty generous. If you actually pen it out, commuting is terribly costly and even my conservative 10 miles is generous. I bet the average is 15 miles each way. Then there is this, "The average cost of an American commute is $2,600, according to the Citi ThankYou Premier Commuter Index. " (smartasset.com/personal-finance/the-average-cost-of-an-american-commute). I have no idea what is being account for in that commuting cost as my searches kept running into articles that reference it rather than the hard data itself.

@@mjs28s yeah i commute because 35k - 2grand is better then $00.00

@@3of11 "time value of money" is a bit of a fiction for most people. Don't get me wrong, there is value to your time, but it's usually not monetary. My time is NOT worth my hourly wage when I'm not at work, my time is only worth what someone is willing to pay for it. My employer isn't willing to pay for it after hours, so I don't have the option of making money that way. Similarly, the hiring out thing isn't generally done by most people even if they do have the longer commute as they simply can't afford it (a maid? who can afford that?). Side hustles are great, but the majority of people aren't making any money that way either. TLDR: If you don't have the option of working an extra hour at your job, or a similarly paid side-hustle instead of the extra hour of commute, your time isn't actually worth your hourly wage.

Awesome! Glad to bring in a new concept!

Michael Petroshus damn that’s a decision 20 years too late

Eddie Wow no, it was when the timing for us was right.

There are definitely non-financial perks to consider as well! : )

Good thing u bought a house, at least one day u can say i owned one whatever happens in the future. Owning a house is not for everybody i noticed that.

Oh yeah, SO MUCH this. I never really felt like I was going to be in anyplace for the long haul, and I kept things for "the next move" that I now am comfortable parting with.

Pretty nifty little calculation, right? Where do you live??

@@TwoCentsPBS absolutely it is. I live in Toronto, which is said to be in a form of Real estate bubble.

@@aariksubram1934 I only know Toronto from those home/condo buyers shows, "I'm a part time puppeteer and my wife is a stay-at-home dog mom and our budget is capped at $1.2 million."

We'll like your comment! That's what!

by the way pr ratio in san diego is like 35 or so maybe higher in other parts!

I need some of your advice asap!

You bet!

@@TwoCentsPBS So I found Houston listed on a web site with a PR ratio of 14.67, but given the diversity and vastness of "Houston" I am going to have to further my research.

@the bakermaker In your case the best decision you could make is to divorce.

nolo king exactly I love the security of home ownership for my kids stability it’s so important before we had kids we moved every year because of the landlord selling the home, rent increasing, bad neighborhoods it is worth every penny to own a home in a good neighborhood it give me peace of mind

Yes and do a google search for "net worth of homeowners vs renters".

Lee Klinglesmith what’s the difference

Plus in some states (like Texas) your primary residence cannot be lost in a law suit. So if you have a lot of your net worth tied into your home you can't lose it. But for a renter who invests in the stock market (except for a retirement account) can lose almost all of their net worth. So in Texas if you own a sole proprietorship or do risky things that might end with a law suit (like being a doctor or scamming people) It might be smart to buy a home.

@@hellzshotgun I've lived in several states and Texas has had by far the highest property taxes. Yes, there isn't an income tax but the taxman just gets their money another way.

It is the number of years it would take to pay that house with that fee, without counting interest. That's why you don't want a debt that would be paid in 15 years at best...

Over 15 better to rent under 15 better to buy

This is Barris! I get the logic of this, and the potential pitfalls that not following this logic could lead to. But from a practical sense, when I’m weighing financial options, I like to look at what I could expect to receive from the market based on historical data and my previous history. Since I know that all of my extra money goes towards my IRA, it would be silly for me to compare something like the down payment to something secure when I know exactly where my money will be going and what I could expect over a long period of time based on data. I do use conservative estimates though.

Tell me, where can you find a place for rent for $1000?

@@ErrorPagenotFound-ig1cy Many places where I live. But like I said, it all depends on running the numbers. If you have a family and your rent is 2000 and all expenses in on your mortgage are 2300, you might as well buy a home. This is going to be different for everyone. There is a huge difference between a single person who can rent a studio for 900 and a 4 person family. The point I was trying to make is run the numbers. The numbers don't lie. A lot of people talk like housing is the best and only choice, yet they can't even run a FV calculation. That is just ignorance.

Assuming, your costs remain around 2K per month (I'm pretty confident they would increase over time), you would have input 700K over the 25 years, not just the initial 100K.

Value Venture Investing doesnt matter. The goal of home ownership is to pay it off as soon as possible. Let’s say I pay off my house and also invest $1000 (same as you) into my retirement for 20 years, we will end up the same amount of money in our IRA’s, but you are a renter, I have a free and clear home. Who messed up in that scenario? I have no mortgage and that IRA will not go towards rent.

@@ErrorPagenotFound-ig1cy I think you are confused. These are two separate possibilities. Either you buy a house or you rent. In both cases you are considering the opportunity cost of capital. If you have 3K to play with in one scenario (2K for montage and all cost associated and the extra 1K you speak of) you have 3K to play with in the other one as well. If you have the salary to pay your mortgage and invest 1000 a month, that's over 2000 a month that you could have invested with renting. Thats 3.4 million in 25 years then. Your home value and your 1000/month in your investments will not be worth that. Its the same scenario, you are just saying you have a higher income.

I’ve been thinking of taking this option, myself. I love small, cozy spaces and I don’t own too much. How are you liking your Tiny House?

only diff is all the bylaws and monthly condo fees which can increase every year. you also pay for any major repairs and then are given a large bill but u can add those special assessments to your insurance policy. Insurance is cheaper for condo vs house and of course it costs a lot less. good starter home that you can turn into rental property after.

Agreed. Also, Imagine when your roommate brought a visitor (his/her partner) that suddenly became a roommate.

You Just realized you’re renting?

"And the video was coming from.... INSIDE THE HOUSE!!!"

dittoooooo

Same here, moved 16 times in my life so far and still counting, always chasing a damn job somewhere.

@@-Anunnaki- I’ve changed my mind in the last 9 months. With all these covid “rules”, I’m moving onto my twin’s property and probably going to buy a camper for now.

Two Cents is like a fine cheese. Takes time, and care to make. Delicious. Stinky in a good way.

I saw this too. Spelling errors pop out at me.

@blue green the housing price is high in some parts/cities of the US, but not in all. Nevertheless, if you get a super low interest rate now, why refinance it in the future? And if you do because you need extra money, you would’ve benefited of having a low interest rate for many years

Do you live in Mumbai?

Neither here in India.