It's Just Not Sustainable in the Long Term

📱 Watch the full episode for free in the Ramsey Network app. ⮕

Next Steps:

Support our Sponsors:

Watch more from Ramsey Network:

Ramsey Solutions Privacy Policy

[reneehenderson]

I live in SoCal. My mortgage is $1350/mo. I bought 12 yrs ago, 15 year mortgage. A 2 bedroom townhouse, where I live starts at 3500/mo. Now who's saving a ton of money? And you know what? For the next three years, no one can raise my rent, or ask me to leave. And...in 3 years or less, I won't even have a mortgage, and can live in dignity when I retire.

[nedutchgirl]

When we announced we paid our house off. My brother told me you never really own your house. He meant taxes and insurance. In a ways he is right. Hmmm, i would rather pay $300 a month taxes and $300 a month insurance than pay $1, 200 a month rent. I think he would rather own a home and pay $600 in taxes and insurance than $1, 200 in rent.

[spencerd]

Dave does not have a single child in daycare right now…it is my single highest line item and we went with one of the “most affordable” in the area…

[steveh]

I pay $1, 800 rent. Mortgage is going to be $4, 300. I have a TON of money to invest because I don't have a mortgage but also associated upkeep. It's impossible to have a mortgage of $1, 800 in my area unless it's 2 hours out of town in a former meth trailer. My $1, 800 apartment is pretty nice.

[felixpope]

Most expensive is taxes and that is why saving is stupid

[getouthope]

Except when you’re renting from family 😅 My grandpa charges me $400/mo for a 2 bedroom. My friends hate me lol

[afriendtoo]

Buy something small and cheap, pay it off asap and have a roof over your head in retirement.
I know you can't do that in major cities so look in rural area for a fixer..

[MedEwok]

If ypu live in a country with tenant friendly rental laws, like Germany, where the increase in rent is legally capped, it might be financially advantageous to keep renting for life in some areas because buying and paying off a similar sized property is often much more expensive.

[BarbaraBCarlson]

Wisdom
Common sense. Thank you Dave! You're helping so many people get out of holes to fly.

[billwilliams]

Home insurance, a new roof painting HVAC replacing, city and county taxes are also out of your control and increasing

[yankee]

That were my daughters are extremely lucky as wedding gifts. I bought them both a house neither one of them have any mortgage. Also paid for both Weddings and college. They have zero student loans so they are starting out pretty good in life with zero debt. Now what they do from here is on them they screw it up. That’s that one chance I saw them up for success. They have to take it from there

[MarkDonahue-reiw]

No it's taxes and everything you said is true

[Sandy-rt]

Variable rate home loans have never made sense to me. I'd never do it. Just do a re-finance if interest rates decrease later.

[ryanheaton]

Insurance and taxes on a home go up too.

[georgiaadvisorygroup]

What about including costs of repairs fixed taxes and opportunity cost from higher return investments?

[VictoriaWalters-gq]

When ever my husband and I could swing it we paid double house payments.❤

[EllenPitts]

I think the most expensive line item nowadays is healthcare

[SneakyRussianSpy]

No, it is taxes. By far the largest expense.

[yearssober]

Dave im renting a place in naples Florida for $950 a month. Last year i sold my home for over $600K. That home was paid off. Ive invested $550K and i make over $100K owning my own business. In my situation id be a fool to buy a home again. My current residence is also a partial tax write off because i have a home office

[kirk.w.mclaren]

Plus you miss out on the equity and tax benefits