BUYING A HOUSE IS NO LONGER THE AMERICAN DREAM
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Rents go up over time while your mortgage goes down…
Whose mortgage goes down?
They go up because of property tax, but not as crazy as renting a house when you have that family someday. This is only true if you want to rent some 1-2bed apartment thats 60 years old
me when i lie
Your mortgage only goes down if you refinance, which will make your payment lower based on the equity you have built up, but this can also be counterproductive. You will have to pay new closing costs and loan fees, which are not cheap (for lower income earners these can be a huge chunk of your annual salary). Additionally if interest rates are worse than when you initally closed you will likely be paying more in interest than when you bought initially. Therefore, its typically not a smart move to buy a house with the intention of refinancing it a bunch of times throughout your ownership just to lower the monthly payment.
@@buddhal6627 Relatively it goes down because of inflation (if you look at it that way). As long as you get a fixed rate mortgage you are locked in to the same price until property tax & insurance goes up. That $3,000 mortgage remains the same but if you keep earning more even in just cost of living raises, it will be less over time
Rent costs about the same as a mortgage in my area, and upkeep doesn’t add a lot onto that price. Most of the money you pay on your mortgage goes back to you, but no penny of your rent payment is coming back. I strongly disagree with this take.
Mantainence, property tax, and upkeep need still a lot. On average, it’s about 1.5x mortgage, which is how much the overall cost is going to be.
Your belief that home ownership is better than renting will keep you poor.
Yeah you are heavily minimizing upkeep and other costs
Most of your money on your mortgage goes to taxes, insurance, and interest. Very little of it goes to you.
Our last apartment before buying was ‘luxury’ but what a lie! Paint splatters, floors that don’t come clean, and thin walls! And there was a revolving door of staff, which made for inconsistency. Loved the freedom of selecting options that were based on our own criteria like the flooring and window coverings!
Graham, are you seeing the Pokémon market? It’s been on a tear the last two years.
I respect Graham but this has got to be the worst advice I heared, maybe everyone thinks differently but I prefer paying for a mortgage and pay off the house in 30 years and not have to pay a landlord for the rest of my life, I can deal with the home taxes it’s not bad but having to pay $3,000 in rent for the rest of my life is crazy!
Yah I dunno buying a house is the the easiest way to ensure you and your grandkids don’t go below the poverty line… dumbest advice evee
He moved to Vegas in the middle of the desert, that is why he thinks rents are so cheap
If you get a $500k mortgage you pay well over $1 million by the end of it because of interest. Not to mention all the other costs like maintenance, insurance, taxes. Whereas if you rent you can invest in the markets and end up with enough to buy the house outright and pay no interest.
I bought 3.75 years ago. My mortgage is 782 a month (PITI), I put came to closing with only 5000 with my down payment and closing costs. Rent is now more than double my mortgage payment or more. I think in some parts of the country it can still make sense to buy (some of the rural parts).
He’s not wrong. You’ll probably get a better return on investment putting in index funds rather than a home that needs repairs and insurance every month
There’s a reason why the average net worth of homeowners is 40x that of renters.
Don’t overthink it.
Its not about the investment… its not having to deal with a lanlord. If something breaks, I fix it. I don’t have to wait on some moron
Of course the guy who owns rental properties wants you to rent.
He is just telling the truth. The rate now is too high and rent is cheap. But in long term, you should still buy houses.
The math is the math. You’re better off renting in virtually every city in America these days.
No. There is no “extra income” to throw at index funds. Rent is still taking 35-40% of take home unless you have roommates. We are losing families. American way of life is dying.
Rent is definitely not cheap. Renting is throwing money away.
The $600 a month in property taxes I pay is also throwing money away, so is $500 a month insurance 😂 or the worst last year spent 50k in repairs.
Buying groceries is throwing money away too
Two sides to it. You need to find an extremely good deal on a house to make it worth it. With the average price of homes in some states at 330k and a 1.7% property tax you’re paying $5,800 a year on that tax alone. So renting would mean allocating more money towards investments that would grow to beat inflation and put you in a better position to buy a home when you’re more financially viable.
But raw land, it’s cheaper, then build your house on it later
rents cheap ? where the fk is he talking about rent is more expensive than a mortgage is almost every city in north america. I have a 1 mill house and pay 2000 a month mortgage in the city rent is between 2400 and 3000 a month for a 2 bedroom house
When you have a family, you won’t be able to buy a house right away… And since you’re going to have a family anyway, it’s worth buying it as early as possible.
Worst advice you could ever take. When you buy a house, you get all of the money you paid while you live there, back, when you sell the house.
Why would I want to pay someone else’s mortgage when I could just pay my own? After 25 years of renting you will have NOTHING to show for it.
So if I offered to rent you an apartment for $100 a month you wouldn’t do it?
“Rents are so cheap” what planet is bro living on 😂
“rent is cheap.” I think you mean houses are expensive.
Property for me and not for thee. Remember, the thing that gave the feudal lords power over the serfs was property ownership.
I bought my house in 2022. My mortgage is several hundred dollars lower per month than the average rent in my area. Because I own this asset, my net worth has increased which gives me more borrowing power should I need it. And since the value only ever increases, and inflation has risen so fast over the last few years, I’ve accumulated quite a bit of equity. In fact, the cash equity I have available to me is nearly equal to what I owe on the house.
Someone please explain where I’ve gone wrong. Why was this a bad idea?