Struggling To Buy A Home? You're Not Alone (Here's Why)

You will own nothing and be happy

S&P 500 gives a higher return on money you have and real estate gives you a return on money that didn't come out of your pocket mostly. I'd say, do both if possible

But seriously, are you selling bath water?

One of the problems with the real estate, is that it's also become a speculative asset, rather than a place to live. People are using their houses as a way to get rich by also utilizing the tax advantages. Plus all these cash out refis are creating the bubble and the neverending debt cycles. Just my two cents!

This video is literally the reason baby boomers shouldn’t talk about “back in my days”

My parents bought an average sized house in the mid 70s for $45K. The issue not mentioned in this video is the mortgage rate at that time was 14-15%. They ended up paying $180K for that $45K house.

Housing price is getting ridiculous. USA housing market will soon resemble what it is in South Korea. It makes no sense to buy a house at this much premium.

The average home in my area is 600-700k lol basically impossible to buy off one income

We bought our house in May 2017, thank goodness. Now Zillow says the rent would be 3x what the mortgage is. Rents are also really high.

What if the desire to own a house and land isn’t wealth but more for peace and quiet ? Edit: my comment is referring to his recommendation of… if you’re not interested in equity from real estate, you might as well rent. Not everyone wants to reside in an accommodation with paper thin walls.

I went house shopping when I was about 35 right after the 2008 bubble burst. This is when everyone says houses were affordable and plentiful. What they don't seem to remember was that 70% of them were foreclosures. Properties that have sat on the market for like over a year without running utilities even on. "Suuuure, this is only 250k. It can all be yours. Provided you hire 10 contractors and invest another 100k into necessary renovations and don't mind getting scammed on "buying as is" or the gamble of a sheriff's sale. edit...turns out MOST people don't keep up with their homes. and this is what's happening again today right now. Because everything is expensive the people who currently have a house...aka Tomorrow's new "foreclosure" listings will be the ones who have lived in that house for like 50 years and still have the original shag carpet from the 70's complete with 50 years of pet pee stains and stink. Old grandma mauve colored bathroom fixtures. The money pit movie where they know all of the little quirks to barely keep their home together..."As long as you go up the stairs on the far right of the steps skipping every other step, that stair case won't collapse on you"

In addition to income not keeping up with the 3-5 times housing rule, it also hasnt kept up with food, medical care, and other necessities.

Thank you Andrei

HOMEowner vs LOANowner BIG difference in those two terms. Aspire to be the former and not a 30 year slave to the system.

It would be nice if there were a fixed income investment that paid the typical rent costs plus house price inflation minus a typical house maintenance (if you DIY). REITs should help with it, but it's not really something effective and there's no "starter house / house flipper" REIT that compares with the alternative when you make a purchase. Gen X is also having a difficult time buying. The only ones not having issues are the ones working as employees with permanent contracts on highly paid jobs or two income couples.

Wage theft is one of the biggest reasons salaries have yet to be able to keep up with the housing market prices. Only those workers who earn minimum wage receive a raise when the minimum wage increases. This means that if a worker has been with the company for ten years and has worked up to their current wage level, they will not receive a raise when minimum wage workers catch up to their wage level in just three to five levels. This often results in long-time employees feeling undervalued, unfairly treated, and wage theft!

Good job.

Parents helping their kids out, foreigners and baby boomers moving out of expensive states is artificially increasing the prices of houses.

Appreciate

Drop the link for the bath water Andrei 👀