Renting vs. Buying a Home (2024): Why I Regret Buying

Renting vs. Buying a Home: Why I Regret Buying My Dream Home

This video delves into the financial truths behind homeownership, challenging the notion that buying is always the better investment. With the current high interest rates and the unpredictable housing market, we uncover how, in many cases, renting can be the smarter financial move.

[DrkBlde]

At this point I feel like it's just hard to have a roof over your head.

[divergentmind]

when i bought a new home and had no kids and no repairs and had grants to buy it, it broke even. when i got an older house, had kids and had lots of repairs every year, it was around 8k in repairs per year, it was a nightmare, with a house you also do a lot of making it yours and yard work alone can be extremely expensive. other thing i realized that if you don’t pay taxes they will sell the house to cover the cost of taxes, so it is an illusion that kept me house poor.

[miken]

I rent an apartment in Texas, currently $942/month ($11, 304/yr), rent goes up every year but so does property taxes and maintenance fees for condo's. I could buy a similar condo for $149, 000 which has a $691/mo maintenance fee, $3, 900 property taxes plus I would lose $7599 of interest on the $149, 000 that I use to buy the condo. So cost to own a condo is $19, 791 vs $11, 304 to rent. Renting is cheaper because I can increase my savings by $8487 a year. Rent will go up each year but so does maintenance fees & property taxes. Yes property will rise in market value most years but $8487/yr invested @ 5% interest will become over $563K over 30 years.

[DJGENOTYPE]

Here in Texas. I had to buy a house since the mortgage and rent were about the same. A house got me a 2 car garage, 3 bedroom, 2 bath. The same cost for an apartment only got me a one bedroom. Now this was back in 2018. My house was $250, 000. Now it’s worth $370, 000. And my mortgage only went up a couple hundred dollars due to taxes. Now that same apartment more than doubled what my mortgage currently is. I can sell my house now and get a nice check out of it.

[greatglidesby]

Love this video! I bought a house in my 20s and sold for a profit, but I put soooo much into it in maintenance. I would have been better off investing my money, and had my weekends back that I spent painting and sanding and stuff.

[dominator]

Property taxes dissuade me.
Why do we pay rent for land we buy to the state government that doesn't own it?
In todays system buying still means renting. Only way you own something is if you dont get it taken away from a outside source for not paying a imaginary # made by said outside source.

[sonataz]

For me is the property taxes, they are just too high, because houses are worth more, here in Florida is a nightmare and I can't justify paying 9, 000$ property taxes on a 380, 000 house, I have to keep renting....

[marinee]

I didn't plan this but here's how i got to my dream house. Bought a duplex. Lived upstairs rented the lower floor moved out 1yr later bought a second house duplex pays the fixed rate mortgage on both. 3rd property built new. Rented that house out brand new to a renter. Never lived in it not one day. Repeat as often as I dared. Always leveraging a mortgage with a renter. Out of pocket cost $1100 to start VA loan on the first duplex with tax free money made in Afghanistan on a deployment, didn't put money down that was for an inspector and motel cost waiting for closing. And still bought stocks and index funds every month since 1992. Sometimes you have to form that snowball before you climb to the top of the hill. All maintenance done by me or a team that I assembled over the years. Lastly start a management company and add all houses into different LLC's to separate for protection. Also manage other people's property at 10% and hire a manager to run it if you have a full time job. And let the portfolio create cash flow while I pay nothing on my main house and work full time. The first few years matter.

[tyleraus]

Buying a house is forced Savings. Most renters dont invest what the would be forced to pay on a mortgage and most gets wasted. Cheers thanks for the differing point of view

[josefj]

My parents bought a home in 1989 for $88, 000 and sold it in 1999 for $89, 000.

You leave out how much rent increased in that time of renting or buying. If you buy a home today in 29 years your mortgage would have gone up $2000 a year due to property taxes. Renting cost would have gone up $4, 000 extra a month by that 29th year. When we bought our home in 2014 was when everyone was afraid of a massive housing crash. The mortgage with escrow was $918 a month now it is $1020. Renting has gone from $1200 to now $1850 for renting the same home. And just because you own a home doesn’t mean you can’t invest also. Simple reality 70% of renters have no investments not even retirement.

[OfficialDotaPlayer]

4:35 Am i missing something here? You don't take into account the rent that you continue to pay while you invest in the index. Yes the equity value of the house might be lower than the equity value from the index but what about the annual payments from rent?

Also in the first scenario you sell the house and you pay tax but in the second scenario you don't sell and don't take into account capital taxes

[bigtrevdogglbc]

People in NYC rent forever and never worry about owning. I have a friend living in Brooklyn that pays $900 per month. If he bought a house right now he would be paying somewhere around 4k per month.

[Miko_of_the_North]

where did you get the charts showing the better the rent map?

[Happygolucky]

It's one of the best videos on the housing market!

[BAMMEDIA]

great videom, good production value. pleasant voice.

[stom]

Thanks! You mentioned something at the end of your video that resonated with me. Something to the tune of owning and renting being more of a lifestyle choice. I needed to hear it as I prepare to move back to the U.S. later this year. Even though I can purchase a home comfortably, the lifestyle I envision isn't stable enough to purchase a home unless I think I can make a profit and I do not believe it is likely within a four year time period in southwest Texas.

[leenasandoval]

And another thing to think about is, if your money is in the bank and we have a depression you’re gonna lose all your money. At least it’s something tangible. Let me know your thoughts thank you.

[ianheegaard]

This does not take into account the tax side of things capital gains on s&p will be 15-23% at least vs for 1st time home owners you don’t pay taxes on like 250-500k of gains so it is a big deal

[mike]

Very interesting, surprising to look at my area and come to the same conclusion. Maybe waiting isn’t that bad of an idea after all. At least till the math works in my market.

[robocop]

I love my tenant. He always pays the rent on time which enables me to pay the bank on time. In three years the mortgage on that rental property will be fully paid off by my tenant. Win Win for both since you say renting is better