The True Cost of Buying a House

Hi there 👋 If you're new to my videos my name is Matt D'Avella. I'm a documentary filmmaker, entrepreneur and YouTuber. I've made a couple documentaries for Netflix. I also teach courses on everything from filmmaking to habit change. If you like to nerd out about self-development as much as I do, you can subscribe for weekly videos.

🔗 LINKS

🎬 Credits
Directed by Matt D'Avella
Edited by Zach Mayfield & Matt D’Avella
Animation by Spencer Torok

[EleanorShaw-oddj]

I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .

[GillerHeston]

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.

[rsartore]

Design shows have really romanticized fixer uppers, but if you're going to buy a house that old, it is impossible to do so financially (for most people) without having the skills to be able to fix those issues yourself. For example, we also bought an 1890s row house. However, we only chose to do so because my father-in-law is a carpenter/contractor. Without him (considering the electrical, plumbing and structural issues we discovered) this house would have ruined us financially if we had needed to hire outside help. Old houses will always, always cost more than you think to renovate.

[dainasworldnumbers]

I’m glad you put this out. Society makes you feel like a loser if you don’t own a home…

[Ericaaaaaaaaaa]

I sold my house a year ago at the peak of the market, and went back to renting. I was tired of paying for and worrying about repairs. In 2021 I spent $25k on repairs and maintenance. Not everyone has that kind of cash laying around, but you need it when you own a house. You can't just look at the mortgage payment. Houses are expensive to maintain!

[LilDeadHead]

THIS just HAPPENED TO MY PARENTS. They bought an old house thinking it'd just need some cosmetic updates.... and then yes.. each problem lead to 5 more and yes their entire house ended up came down to the studs. Feel so bad for them. God bless you all.

[kellydeak]

Another thing is, buying a home won’t “make you happy”, remember to never let buying be an emotional decision to fill a void

[mindsetofthefew]

Buying a house will be one of the major purchase and decision of a person's life. This is why we have to get our finances in check before taking that big step. As a person like me who hasn't bought a home yet, this is helpful. Thanks Matt! ♥

[abigailbhoorasingh]

I feel for you, my dude. My husband and I bought our first home when we were 25. The first week owning the house, the basement flooded due to a freak winter storm that burst our pipes (we live in Canada). It was a mess that cost us 60K. Truly would not wish it on anyone, but we got through it, and when we sold our first home, we made back all our money and then some. It wasn't easy, but definitely still worth it! Keep going, it will get better!

[Ruth-tumu]

My husband and I bought an old house this past summer, and that “we can lean into the joy and excitement that comes with owning our first home as soon as we get that *—* is fixed” energy is relatable 😂❤

[marcbellew]

We bought our first home in the last 12 months. The price of the mortgage monthly is less than 50% of renting costs. As a parent, it was also a factor to leave a home for our children when we are gone.

[Getaways]

So happy to see Ramit on your video! This guy changed our lives. We bought his book and started listening to his podcast almost a year ago and we went from a negative net worth to over $30K in that short time. Ramit confirms my decision to never be a homeowner and I have never felt better about that. If you are stressed financially get the book. It could change your life.

[BecomingCanadian]

We know the feeling mate, we bought a house in 2015, thinking exactly the same just a lick of paint and new furniture and we’d own a home finally!
Only to find out 5 days later after we moved in, the house had all of the issues and previous owners cut all the corners.
7 years in we’re still in renovation mode and still coming up against issues.

[AtentieCadMere]

I found the same place to rent or buy. I would have had to live there for 45 years, have zero maintenance costs, have no inflation, no renovations, to just break even. fortunately my family owns a home, and I can see how often things break, need updating, and loose value if not maintained... I do not think I would be alive to see the day I break even. And that debt would loom menacingly over me for the rest of my possibly shorter and with fewer days off life. Now the upside is that you can make the place your own, and if you are not a minimalist, you need space to keep your stuff somewhere. Living simple, makes renting easier, living with children, lots of toys and miscellaneous, it makes renting more complicated. Having a bad neighbour can ruin your owning experience, getting away from that is easier by moving. Selling an expensive place, is also hard. I see properties decaying waiting oi be sold for over ten years now. Don't forget about recessions... yes, life, adult life is fun. buy a cheap place, at least one car, and commute, or rent in the city and bike... don't forget to factor in the price of vehicles, insurance, maintenance, in the cost of living further away...

[TheRealWinser]

This is why you do your due diligence and definitely never waive inspections. There shouldn't be any surprises when you buy a home.

[ATaylor]

Love your videos Matt. Our home in the UK was built between 1690 - 1705 so we know all about hidden costs, it’s been a total money pit but thankfully we’ve absolutely loved living here and hopefully you and Nat will feel the same about your house in the end

[kenlam]

I bought my first home in 2022. The home was built in 1998 and the seller was the originally owner. Yet, I still hire a home inspector for a thorough home inspection before closing. Home inspector identified a few problems/money pits with the home. Never skip home inspection.

[jay.el]

What really blows my mind is how you had a 20% deposit and paid up front for those expensive repairs... In Sydney.... I've lived here my whole life and only just now in my early 30s can even begin to contemplate home ownership here. Massive, massive props to the both of you ❤️

[Laelin]

Mat, while I am watching the ad, I just want to say - you cannot imagine just how timely this is. And also humble and honest and interesting and I can just go on and on and on… Thanks Matt!

[AndyofCT]

I just bought a place in November, but I intentionally undershot my max budget by about 30% and bought in an up & coming neighborhood. So far, I’ve had ~$1500 in unplanned expenses and have about $5000 in things I plan to improve over time. There were a few “turn key” places that would have pushed my budget further, and maybe I wouldn’t have needed to make some of these improvements… but it’s just as possible that I would have, and wouldn’t have had the extra cash to get it done.