There’s an old saying, You own your home but your home owns you. In Many cases the property tax, Insurance and cost of utilities and maintenance are the larger monthly expense then the mortgage.
@krisstinawise
12 сағат бұрын
This is true. With that said, a tenant is still paying for the cost of property tax, insurance as the cost is built in to the rent. And, tenants usually pay utilities. The key is to not overbuy a home where you are house poor -- this is where it feels like your home owns you.
@jqx7743
19 сағат бұрын
Maintenance expenses such as property taxes, insurance, HOA, replacement of the AC, lawns, etc are high.
@krisstinawise
12 сағат бұрын
True. Keep in mind that property taxes, insurance and HOA are built into the cost of the rent for a tenant.
@waterbug1135
10 сағат бұрын
You betcha. Glad I have renters paying all those expenses for me plus a profit for me. Rents are high too.
@robocop581
7 сағат бұрын
Eviction was the main reason I bought a primary residence. I had no problems paying the rent as it accounted for less than 10% of our household income. Getting evicted when you're single or a couple is no big deal. But getting evicted for the third time with young kids was the deciding factor. What made it worse was our youngest daughter and I painted her room just a month before the Landlord announced he was gonna sell the property. Explaining to our daughter that we had to move after decorating her room was very painful
@anthonyoghieakhe
21 сағат бұрын
This is brilliant! Thank you for taking the time to do this for us!
@krisstinawise
12 сағат бұрын
You're welcome!
@rrickarr
23 сағат бұрын
Very thorough!!!! So, before people buy a house they should consider how long they are going to stay in it. And SO MANY people are losing their homes!!!!!
@krisstinawise
12 сағат бұрын
Thank you. And yes -- deciding how long you will stay is an important factor to consider before buying.
@jcotton4672
2 күн бұрын
That was the best comparison I’ve seen so far. Thanks for the time you put into it. Glad I made the right choice. For me anyway. Free will is the best for all. Results may vary. 😂
@krisstinawise
2 күн бұрын
Oh great! I'm happy this was helpful in helping you realize you made a good choice. And, I agree .. Free will for all :) Thanks for the comment.
@ckzamora
Күн бұрын
Very thorough analysis. Thanks for doing that. Good to know.🎉
@krisstinawise
12 сағат бұрын
You're welcome!
@tuannguyen-yt8ty
Күн бұрын
I agree with you 100% by doing this I was able have a choice to retire at early age .
@krisstinawise
12 сағат бұрын
Right on!
@robocop581
12 сағат бұрын
Rent or Own I own several rental properties so it's definitely better to rent. Don't even think about owning and taking away my rental income. I recommend tenants stay put for at least 12 years so they can pay off 100% of my investment
@krisstinawise
12 сағат бұрын
Right! I guess I should give the opposite advice since I too am a prolific landlord. Thanks for the fun comment
@Helena-ou8ry
20 сағат бұрын
I don’t know anyone that has been better off renting long term. I grew up in the 1980’s and getting a mortgage for my parents generation was very difficult so a lot of people rented they were always the poorest kids at school even if their parents had good careers. My parents always said you are worse off for the first 10 years buying but every single year after that you are better off.
@krisstinawise
12 сағат бұрын
Great advice from your parents!!
@waterbug1135
10 сағат бұрын
So if renting is better than owning...who would ever own rentals? For 10,000 years people have owned and rented their properties to make money. But they didn't actually make any money and they never noticed? I love renters. Retired 22 years ago at 45.
@CW-ez7mn
17 сағат бұрын
Even though my HOA triple last year to ~$800 for 1/1 per month since I live in South Florida due to Surfside collapse plus ~$5k assessment last year plus likely another assessment at end of year, it still comparable to renting. prior to huge HOA increase, my housing cost is ~6-8k a year less than renting a similar place. Due to large increase in rental cost after pandemic in my area, it’s still cheaper to own my small condo. We have homestead exemption in FL so my property tax is not too high since I own a small 600ft condo. I am grateful I didn’t over extended myself to buy house because in last 2-3 years, all my friends with houses need to get new roof or their Insurance would not renew them! Their property taxes and insurance all increase dramatically, most double!
@krisstinawise
12 сағат бұрын
Exactly. In the long run, it's usually a better financial decision not to mention the equity you are building. And, keep in mind, that rents increase with HOA increases, etc.
@joanharder2124
11 сағат бұрын
Great breakdown!! Thank you 🙏
@krisstinawise
10 сағат бұрын
Glad it was helpful! Thank you for the comment!
@conniechen1645
12 сағат бұрын
$440k house doesnt rent for $2,850.
@krisstinawise
12 сағат бұрын
No, it doesn't. I was using a median home for sale and a median rent price -- showing to rent a home is less expensive monthly if you were only to consider that factor, but when you factor in the other numbers, in most cases, it still makes sense to buy/
@jjn6914
18 сағат бұрын
This was super helpful and holistic! I think people need to remember to maybe research those pundits who say renting is better and see if they're in the circle or fringe of the circle that attend WEF-type events, knowing full well that homeownership has been and still is the time-tested and only proven mechanism by which low-income and middle-income classes can build wealth. Those pundits like the class divisions, so they feel superior, and thus, will preach that those aspiring to become middle or upper-middle class should never own anything.
@krisstinawise
12 сағат бұрын
I couldn't agree more! Thank you for the comment.
@the1bradclark
2 күн бұрын
Man, I wish I had seen this a long time ago. Break down is very clear and convincing. Thanks!
@krisstinawise
12 сағат бұрын
You're welcome! I'm happy it was helpful.
@TG-cr6fb
16 сағат бұрын
Great analysis!
@krisstinawise
12 сағат бұрын
Thank you. I'm happy it was helpful.
@Image8O4
15 сағат бұрын
This is a good example in theory. Houses can depreciate drastically in price. I would say anyone looking to buy a home make sure you are ok with living there for 30 years. Do not buy a home to sell it in 13 years. That may not always workout like this video is explaining.
@krisstinawise
12 сағат бұрын
The purpose of this video is to encourage people to do their own numbers to determine what's the option, versus just taking others' word for it. And, this video emphasizes buying a home and paying off your mortgage because when the mortgage is paid off, there is no more rent and the owner gets to live in their home rent/mortgage free.
@Chagugugu
15 сағат бұрын
Every case is different, for some people is better buy a house, and for others people is better rent.
@krisstinawise
11 сағат бұрын
You are right. Every case is different. The key is to do your own numbers to determine which is the right choice for you.
@MrColonelbbc
21 сағат бұрын
Great info❤
@krisstinawise
12 сағат бұрын
Thank you! I'm happy it was helpful.
@robocop581
12 сағат бұрын
Renting is like a casino. The longer you rent the House (Landlord) eventually wins
@krisstinawise
12 сағат бұрын
Agreed!
@tylercampbell6058
18 сағат бұрын
Too many people in the US and Canada have way too much of their wealth tied up in their primary residence.
@krisstinawise
12 сағат бұрын
Maybe. Maybe not.
@tylercampbell6058
11 сағат бұрын
@@krisstinawisethere will be a lot of people who will have to either downsize their homes or do something goofy like a reverse mortgage in the next 10-20 years in order to afford retirement. Can’t eat a spare bedroom or bathroom. After reading the book “Millionaire Next Door” around 2012 I decided to keep my primary residence at under 2x our household income.
@krisstinawise
10 сағат бұрын
@@tylercampbell6058 That is the smart approach -- to keep it under 2x your HH income. That's one of my favorite books -- it made a big impact on my life as well!
@felly6555
Күн бұрын
If a person keeps it for 30years, he /she can pass it on to their offsprings too. A capital they can probably not get if the parents just rented. And let’s not even talk about the stability it provides your family and how it keeps a person disciplined and focused. Remit forgets a person doesn’t stay young forever. I can’t imagine being old and owning nothing. Stock market doesn’t provide much security. Check the stock price of EBay years back and compare it to today’s price. You will understand what I mean.
@krisstinawise
12 сағат бұрын
I totally agree!
@Erintii
11 сағат бұрын
Rent is paying sb elses mortgage.
@krisstinawise
10 сағат бұрын
Agreed!
@4u_2_nv34
20 сағат бұрын
Not sure if its deliberate or unintentional, but your numbers are fudged up.
@krisstinawise
12 сағат бұрын
Thank you for the note. The numbers are "in general" to help those who are confused between renting and buying -- to be able to put their own numbers to the test. I worked to be conservative and general enough that it made sense and was simple to follow.
@darlenemartinez384
17 сағат бұрын
Wow. Entitled much? No one needs to start out with a $400 grand house. They’re called starter homes and sweat equity. When did Americans get so lazy? Also be careful about the papers you sign. Some banks have an interest only loan where it doesn’t matter how much your payment is it’s all going on the interest. Get a no pre-payment penalty loan and make extra payments on the principle only. Do this the day after you make your monthly payment. You’re assuming that people are disciplined enough to put money in the market if they rent. It’s all too easy to just say I’ll do it next month and in 13 years you might only have several hundred dollars invested. There’s more incentive to make a house payment.
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