Renting vs Buying a Home: What NOBODY Is Telling You

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The YouTube Creator Academy:

BUYING VS RENTING A HOME IN 2024:

-Down Payment
In most situations, lenders will require you to put down 10-20% of the purchase price to get approved.

-Mortgage Interest Rate
Today, that cost is the highest in more than 20 years, at just over 7%.

-Potential PMI
This stands for “private mortgage insurance,” and it’s an extra cost - on top of your interest rate - that you pay to protect the lender in the event you stop making your payments.

-Property Taxes
This is generally based on a percentage of the home’s appraised value, adjusted annually.

-Insurance
According to Bankrate, the average home insurance costs $1428 per year for a $250,000 home - but, when 66% of homes are said to be UNDERINSURED - expect to pay more like $2200 for a proper policy (on average).

-Repairs and Maintenance
Over the long term, it’s recommended that you budget 1-2% of the property’s value, every year, for doing normal repairs.

Home Appreciation:
Even though home values have generally increased every year, most of that increase is simply the result of inflation - and, once you adjust for this - you’ll be able to see that home prices stayed relatively flat for nearly 100 years, and didn’t meaningfully start to rise until 2001, when interest rates began to decline and improve home affordability.

WHEN RENTING IS 'BETTER'

-If you don’t intend to stay in your home longer than at least 10-13 years.
That’s because you won’t need to come out of pocket for closing costs, escrow charges, commissions, and many other miscellaneous charges that quickly begin to add up.

-If you can make a higher return from your down payment.
For example, if you’re running a business - where, tying up $40,000 results in a lot less income - that could be a case against buying.

-If you believe the market is going down or will stay flat.
This means you'll have a larger opportunity cost for tying up capital, paying for repairs, and being tied to one property.

-If you want very little responsibility or upfront cost.
Outside of fixing items that you directly damage, the landlord will be responsible for all property tax and insurance increases, all major repairs, and anything else that goes “wrong” with the home.

-If you value flexibility.
With renting, you can leave as soon as your agreement is over. You can upgrade as much - or as little - as you want.

WHEN BUYING IS BETTER:

-Long term, over 20+ years, owning still tends to be the better choice.
Over a long period of time, housing has been shown to be a rather resilient investment - so, the longer you wait - the more likely you are to come out ahead.

-Locking in your monthly cost until your home is paid off.
Now, even though property taxes, insurance rates, and repairs can fluctuate and will likely continue going higher, your fixed monthly costs will remain the same throughout the duration of ownership.

-The psychological benefit that it's "yours."
There’s a sense of freedom that comes along with owning your home, being able to do whatever you’d like with it, and not being at the beck and call of a landlord.

TL;DR
There is something to be said about the fact that a mortgage forces you to save through your monthly payments. For many people, extra money is spent - not saved - and, under those circumstances, buying a home is a way to build equity.

But, unless you’re certain you want to be tied down to a single property, long enough to save money - short term, renting and investing the difference could lead to a better outcome.

My ENTIRE Camera and Recording Equipment:

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. This is not investment advice.
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Man who owns 20+ houses and rents them to others tells others that renting is better than buying. 🤔🤣

evarlast
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The "bank" you bought stole $5k from me. As an owner, what are you doing about it? Gonna keep pretending it's not happening?

scotts
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Great video! For 2024, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

tatianastarcic
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Purchasing a home is already a very difficult thing to do, unless you pay cash or don’t get a loan from the government. If only my minimum monthly house payment, over the course of 30 years I’ll pay more than double what my home is worth. I purchased before things got crazy so I got a good interest rate. I couldn’t imagine trying to rent or buy right now.

HugoBergmann-lund
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Why buy a house when you can buy a bank?!?

facetofaceid
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Graham I have 27k frozen in Yota. You did it again bro

moneylinemaven
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I've been a long time subscriber but promoting bullshit supplements lost me as a viewer.

johnwilson
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Give me back my life saving, going to be homeless because of you

davidforget
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why would you even partner with a bank that lets you gamble? isn't the point of that obviously to let someone gamble their life's savings away??? and now people's money is gone

J-wmss
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I’m a new dad, I moved from Tampa to Santa Clara a few years ago and I’m thinking of purchasing a single family home there, but with real estate prices currently through the roof, is it still a good idea to buy a home or should I invest in stocks for now and just wait for a housing market correction? Looks like NVDA, TSM and AMD and AVGO are strong buys this week.

anderking
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I stopped listening to this scammers advice back in middle school. I’m 23 now, I came here from Coffees video and I’m glad to see that I made the right decision back in the day cause this guy sucks!

ChrisFroemming
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Do not buy a house instead rent one is the worst financial advice ever.

ChrisDERUNNER
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Yotta and FTX, trully finance youtuber

residentevil
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Ur a please don't follow his financial advice

asimnaeem
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First FTX, now this. You’ve really lost your credit Graham

ernestogonzalez
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Thank you for sharing. Financial education is crucial today to show incredible resilience and discipline in the volatile market, masterfully balancing strategy and insight for success. This dedication to continuous learning is inspiring...managed to grow a nest egg of around 200k to a decent 632k in the space of a few months... I'm especially grateful to Craig Reeder, whose deep expertise and traditional trading acumen have been invaluable in this challenging, ever-evolving financial landscape.

ScottWeir
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I hope you do your part to help these people who invested into your bank get their money back.

AllHoursHeatingAir
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Graham, your lack of response to your past endorsement of Yotta Bank is exposing what could be a fatal flaw in your character and perhaps your livelihood on YouTube. I think I have a more nuanced take than many you are likely to see comment here, on your responsibility as it regards Yotta Bank. My issue is not with their freezing of funds, I don't think you deserve blame for that explicitly. The biggest thing that an honest and reputable person would/should have done as it regards Yotta Bank is, the second it became something other than what you pitched to you your viewers as, you OWED them an honest video explaining that instead of a bank it was now just a casino. Yet no such video was published at all, and in fact it seems you're actually actively trying to remove all evidence that you ever said a word about Yotta Bank. Graham, I gave you probably more credit than you deserved for your FTX US debacle, but this is worse, and its worse because it wasn't just a sponsor, and its worse because you failed to inform your viewers (me and your other 4.73 million subscribers) about the complete 180 Yotta Bank had done, and its worse because you're now trying to cover it up instead of face it head on.

I don't know how you can go forward from here given the multiple levels of deceit you are involved in. The deleting videos thing is just pure insanity and no apology is even going to be able to cover for that. I don't know what's up with you, but you know you had a moral obligation to tell people about Yotta Bank becoming a pure casino and you didn't do it. And you're probably going to lose everything for that obvious and insane mistake and that's sad. The attempted cover up is even more so. You always projected so much more respect for doing the right, honest moral thing than this and I don't know what's happened to you that you could have decided to betray your own viewers on a central issue to everything you've talked about all these years. Good luck in the future. You're lucky you're already rich, because the gravy train just left town and you have only yourself to blame. It didn't have to be this way, it was easily made right and you decided not to do it and then you decided to try to lie that it never happened by deleting things. Massive disappointment.

michaelrudolph
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HVAC replacement? $15k
Appliance replacement? $1-2k
Plumbers, landscaping, and other repairs? $?
Then, don’t forget that if you own a home, you need to upgrade it over 20 years. Bathrooms, kitchens, floors and paint. Landscaping on top of that.

I’m telling everyone: owning a home is far more expensive than it appears.

leftistelf
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If you don’t name this next video “I bought a bank” you’re missing a huge opportunity lol

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