Why You'll Regret Buying A Home In 2022

Lets talk about why you'll regret buying a home in 2022 - Enjoy! Add me on Instagram: GPStephan

The YouTube Creator Academy:

BIGGEST REGRETS:

1. Not being prepared for maintenance and other “Extra” costs associated with home ownership.
It’s important to realize that, with real estate…your payment doesn’t just stop with your mortgage. You’re also responsible for property taxes, insurance, regular maintenance, and the strong likelihood that something is going to break the moment you buy it thanks to Murphy’s Law.

2. 13% of millennials say they have regrets about their mortgage rate being too high, or paying to much to buy the house
To me, this sounds like a mistake of not shopping around, and not doing enough research to make sure the rate you’re being quoted - is actually the most competitive rate. Even from my own experience buying properties, 9 times out of 10…the first loan estimate you get is NOT going to be the lowest price, and it’s up to YOU to shop around for a more competitive offer.

3. A significant portion of millennials say that the home was NOT the right fit.
Now, it’s important to realize that - in a highly competitive market like this - there will be some compromises, and unless you have an infinite budget of money to create the perfect fairytale dream home in a good school distract without noisy neighbors…you won’t get EVERYTHING, especially as a millennial. But, these regrets listed are….in my opinion…not something that should be happening.

4. 9% of millennials who say the house they bought WASN’T a good investment.
The traditional rule of thumb says a mortgage is a great way to act like a forced savings account, because every single month you make a payment, you’re building equity in an appreciating asset…and that’s true. But to really come up with an answer, you need to compare it with the cost of renting, and the opportunity cost of investing your money somewhere else.

So, overall…here’s my take on this…as a millennial.

I generally encourage ANYONE who’s buying a home, to do so with the expectation of living there at least 5-8 years…otherwise, the closing costs of buying and selling eat away at the potential benefits of being able to build equity with a mortgage. It’s also INCREDIBLY important to understand WHY you’re buying a home in the first place, and what problems that’s going to solve…like, is it a way to save money? Have more space? Put down roots? Or, is it just a good investment? If it doesn’t fall in one of those categories…chances are, you probably should be looking elsewhere, or perhaps holding off from buying something until you have a clear solution.

I also recommend, ANYTIME you’re buying ANYTHING…never max out what you’re able to buy. That way, in the event of a job loss, or a reduction in income…you don’t have to worry as much about unexpected repairs, or a higher mortgage than you would’ve liked…because you’ll KNOW you prepared for a buffer to make sure you have enough to continue making payments.

And when you begin putting all of this in perspective…from every single one of the 63% millennial homeowner regrets… it sounds more like an issue of poor planning, than it does as a fault of the home itself. Almost all of these regrets could’ve been avoided with about a day of research and planning, and even more than that could’ve been fixed with some evaluation of whether or not they were buying a home for the right reasons.

My ENTIRE Camera and Recording Equipment:

[FinancialSelfReliance]

Planning is so important, at some point you just have to make a decision and move forward. Paralysis of analysis kills more opportunity than making the wrong decision.

[AndreiJikh]

Me after buying a house in 2021: 👁️👄👁️

[AnaRodriguez-ngsb]

My tax preparer said to me “do not buy a house, a market like this is not normal. Wait a year or two and in that time get a better credit score and save money to make a good down payment.”

[Daniel_Braun]

Question: How do you weigh a Millennial?

Answer: In Instagrams

[DooSBZ]

i regret every decision of my life so yeah i’ll probably buy a house this year

[happyg]

Graham, I've been watching you for years now, I have to say you make all of this talk so entertaining, easy to digest, and engaging. You rock man. I smash the like button every single time.

[marceloarnez]

By the time I go look at the property in the morning, afternoon, and evening - the property is sold.

[mdel]

Our generation needs to understand the power of delayed gratification. We live in an era where we can get anything we want almost instantly and so having to put off purchasing decisions is a sacrifice we just aren't used to. Moral of the story, don't buy until you are 100% ready regardless of the market.

[evanpatten]

As a home inspector I approve of this message. It's crazy to me that people are investing in a first time home 'as is' without getting a better picture of what you are getting into is crazy. I understand that the market is competitive but you will regret not getting it inspected. I know I'm biased but I can't tell you how many times I come across something that is a complete game changer for someone's budget. At the very least it gives a first time home buyer the knowledge of what owning a home entails and what to expect. I personally go over all this information as a home inspector with the potential buyers. Find a good inspector you won't regret it.

[InvestorCenter]

I’m 23 and just bought my first house! And I’m househacking after getting inspiration from Graham :) renting out a room and the upstairs unit and it covers my entire housing payment!

[qmakesithappen]

My primary home buying goal is postponed until further notice...

[libbysmith]

Bought in 2021 but locked in build price in February 2020 (pre Covid). The house value increased almost 100k from what we paid vs value in April 2021. Was also able to lock in interest rate in Feb 2021 at 2.5%. I do NOT regret my purchase 😊

[sharalli]

I was a real estate paralegal for years, and I can tell you, most millennials bought homes that were too far out of their budget. They look to continue the lifestyle they lived under their parents, without the income needed to support it.

[financewithian]

*Me, who isn't looking to buy a home soon* "You have my attention!"

[Msfrugalosity]

I bought a house in 2005 for $70k, sold it for $170k in 2021, paid cash for a new one. No regrets.

[JackDuffley]

The hardest but most important thing to do is not overpaying for the property at the start

[PierceJPeterson]

I'll never regret smashing the like button though

[missmegs]

setting a budget is so important! our agent made sure that before we went into the offer stage, we had an upper limit already in mind so we knew that if we got to a counter offer we wouldn't make rash emotional decisions. I think a lot of ppl are getting caught up in the bidding wars and not doing the due diligence of ensuring that they have enough "cushion" even after all of the closing costs too.

[MandRproductions]

I don’t like the video title because I want to buy a house 😂 hoping things relax soon!

[revera]

My parents used to tell me to just rent to avoid a number of hassles with house buying lol. But now at age 30, mostly for my fam, we're eventually gonna be first time home buyers. So advice like this is helpful, thanks!