The TRUE Cost of Homeownership

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Owning a home encompasses more than just the mortgage payment... a lot more than the mortgage payment in fact. Today we go over the major costs of owning a home to determine the true cost of homeownership.

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[KrystalToddCPA]

This is why people say a home isn’t an investment unless it’s a rental property. What also sucks is even if your house is paid in full the government can still charge you property taxes so you can’t really ever avoid some sort of house payment.

[joebie]

The whole financial system is betting on that you have no idea how it works or what you're doing.

[paulfromcleveland]

Our culture has done an excellent job of tying home ownership to the concepts of success and being "smart" meaning that people will pay anything to feel smart and successful. Homes are really about turning people into cash machines.

[cindytepper]

Buy a house you can afford, don't pay MLS retail prices, don't over improve, and don't hire high dollar contractors off of Angie's List or some overhyped site.

[sor]

I always keep hearing "maintenance" as a con of home ownership. Really? 1%-4% of your home's value per year? $12, 000 on a $300, 000 home per year in repairs? What are you replacing the carpets every year? Even then carpet replacement is at most $2000 if you hire someone to install it.I have been at my place for over 15 years and the most expensive "maintenance" was putting in tile flooring after the basement flooded. The cost of the tiles were pennies in relationship to the home's value. Maybe $200 at most. And we put in the tiles ourselves. And if your place is constantly falling apart that you need to spend 1%-4% every year then maybe it wasn't worth that much to begin with.

[Gndph]

2.5% maximum property tax rate... I wish.


*Cries in New Jersey*

[RuthAnnNordin]

Or you could buy "less" home so it's not so expensive and pay the house off early (or even upfront with cash). My house was $130K, and the updates I did didn't come close to what it would be to buy a $330K home. I don't understand the need for these large homes that look like mini-mansions.

[E.E.F.]

I had a 15-year mortgage, paid it off in 7.5 years, and have lived mortgage free for 20 years. I bought a modest house, which still has the original HVAC system. Yes, I have had some maintenance over the years, but I could easily cash flow those.

[sidjtd]

6:20 “Mortgage payments can cost around $1000 or more”. Yikes. Only $1000? What a dream that would be

[chronictwister]

This video taught me that I'll never own a newer home, due to crazy prices. It's funny seeing homes made in 2001 being sold for 120 grand, that are now being listed in 2020 for 200+ grand. Even homes that are 40 to 100 years old are being listed for crazy high prices.

[davidiverson]

I choose not to get into debt. I would rather rent
Do you ever really own the home? If you can't pay your property taxes you will find out who really owns your home.

[sor]

Or you could just NOT remodel your home or repair your home constantly. God knows how many land lords seem to get away with that just fine.

[nancykraus]

One thing I have seen friends make a mistake on is buying a home way too expensive. They have no plans to ever pay it off. Meanwhile, mine is paid off and having no mortgage frees up a lot of your money. As long as I pay the taxes I am good and will have a place to stay that I cannot be thrown out of unless I trash the house and it gets condemed.

[batemanmm]

Yeah; home ownership is expensive if you do it in the dumbest way possible. Wait till you can put 20% down, and can swing 15 year fixed mortgage payment with no more than 1/4 of your monthly income. Buy only if you're going to live in the area for at least 5 years. Don't do major renovations until after you payed the thing off. Don't pay for someone to move your shit, rent a trailer, and/or throw away all your useless junk.

[seanlovesrealestate]

Thanks for this informative video! I think it's great to shed some light on all of the hidden costs of buying a home. Some of these costs can be greatly reduced if the buyers are willing to wait until they have 20% down so that they can don't have to pay PMI and can get a lower loan amount.

Another great strategy to offset costs is to rent out the extra rooms. By renting out the extra rooms to friends or by furnishing and renting them out through Airbnb, your tenants could potentially cover all of your monthly expenses!

[Erika]

This is a great video to share to friends or family who are considering buying a home! There's so much information from buying a home to opportunity cost of owning a home or renting! I can't wait to see how you answer the two questions at the end. As always, awesome video!

[MrWhite]

I bought a house for 95k. 3 bedroom 2 bath, full basement, backyard with a deck and attached garage. Cost 650 total a month. About to rent it for 100k. Don’t rush into buying a 300k houses so you can flex on social media. Buy something that can turn a profit. You’d be shocked at how many people’s first thought when they are looking at a super nice house is the social media post they are gonna make...

[chasezoeller]

Home Ownership may cost more up front than renting; however, home ownership is the better investment. In fact, the same sized homes in my area cost more per month to rent($1300) than my mortgage($1095).

[fruitloops]

Preaching to the choir brother. I worked as an appraiser for 15 years. After buying and selling a few homes, I realized the cost not including the down payment averaged about 15% to get in and about 10% to get out. Then you tack on the downpayment and you are looking at a small fortune. After running the numbers, I figured a one or two percent cost for stocks are a bargain. Unless you purchase the home and stay in it for life. Average homeownership time in US is about 7 years. Bad bad bad deal. Not only that, when you go to sell, it could be months or years to find a buyer. Never ever again.

[workingshlub]

rent an apartment and buy rental properties...buy a home for yourself cash when time is right. ..nothing wrong with renting if you have decent cash flow from rentals....you want assets not liabilities.