I'm anticipating potential opportunities in the 2025 real estate market and considering selling some properties. If the market experiences a downturn, I'd like to capitalize on lower prices. As a complementary strategy, I'm exploring stock investments.
@LukasMeyer476
7 күн бұрын
Investing in real estate and stocks might be a wise choice, particularly if you have a sound trading plan that can get you through profitable days.
@MarshalWagner457
7 күн бұрын
You're not doing anything wrong; you simply lack the expertise necessary to make money in a bad market. In these difficult circumstances, only really skilled experts who witnessed the 2008 financial crisis can expect to generate a large wage.
@EvelynBrooks0
7 күн бұрын
Recently, I've been considering the possibility of speaking with consultants. I need guidance because I'm an adult, but I'm not sure if their services would be all that helpful.
@MarshalWagner457
7 күн бұрын
My CFA, Rebecca Noblett Roberts, is a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
@EvelynBrooks0
7 күн бұрын
Thank you for this tip. I must say, Amber appears to be quite knowledgeable. After coming across her online page, I thoroughly went through her resume, and I must say, it was quite impressive. I reached out to her, and I have booked a session with her.
@savinayn
Жыл бұрын
THIS is the summary of the rent vs buy decision I’ve been trying to figure out for years. The rental income vs mortgage payment calculation never made sense to me. But this is much more logical and makes far more sense. Thank you for simplifying this!
@barryallen5507
Жыл бұрын
Its an accurate breakdown with good explanations, but his entire explanation is a counter argument to his original statement. Apples to oranges or not, they're both money sinks, and they're an equivalent cost, then home ownership is the better choice. Not really sure why he went on a weird tangent about the stock market, but I have no interest in treating the stock market like a savings account.
@chreechree6900
Жыл бұрын
@@barryallen5507 The point about the stock market is that if you take your would-be down payment and invest it instead of buying, that's money you'd be earning returns on vs money that would be tied in your house, that, according to him/ his formula, would be appreciating at a lower rate. It's valid... to a point. The problem is that he never accounts for no longer having a payment when the mortgage is paid off, potentially for decades, greatly improving your cash flow. I guess the idea is that, if you invested, you'd have more money to draw on to continue your rent payments, and the other costs of ownership (maintenance, tax, insurance) never go away. Still, the other big flaw, I'd argue, is that it doesn't account for the rising costs of renting. Overall, rents are forever rising, so what might have been easily affordable in younger working years might become a huge burden during retirement. There's also always the issue of being forced out of your rental. You can't guarantee you can stay forever, and moving has financial (and potentially social, community based costs). Let's say you're renting with kids. Housing in your area has skyrocketed and your landlord wants to cash in and sell the property. You're forced to move, and you've now been priced out of your current area. Your kids are now forced into a new school district, new sports teams, perhaps a new church/ doctor/ dentist, and it's harder for you to see your own friends, you have a longer commute to work, etc. Just as one of the advantages of renting is not being tied to one place and being easily mobile, one of the advantages of buying is being secure in your community/ being able to put down roots, etc. So, yeah, renting might be the right solution for some people and at certain times in the lives of others, but I still think that ownership is better long-term for most.
@spoookyspencer
Жыл бұрын
@@barryallen5507the stock market is essentially your avenue to retirement. Without it you have no hope. Basically he's saying that if you can pay less in rent and be able to invest more into the market, setting yourself up for retirement, it could outweigh the benefits of owning a home. If you pay $1000 in rent and invest $2000 every month, that could outweigh having a $3000 mortgage and being unable to invest.
@scottclowe
Жыл бұрын
@@barryallen5507Investing in the stock market (e.g. with an all-share index tracker) will in the long run give far better returns than a savings account. If you're going to compare options of what to do with your money, it makes sense to compare against the more favourable options.
@bjjking1000
11 ай бұрын
This summary is very misleading. Don’t forget that you play with borrowed money in the real estate scenario. A 3% return would be worth much more than even a 10%return in stocks. Be careful
@samknobeloch503
4 жыл бұрын
"An unrecoverable cost is a cost that you pay with no associated residual value..." The term is easier to understand than the definition
@unknownip6741
3 жыл бұрын
Somehow i clicked on your name and saw your subs... good shit man
@kyrie4451
3 жыл бұрын
Welcome to the finance industry where we make simple things more complicated.
@reasonableattempt1918
3 жыл бұрын
This was the sentence which made me think I was going to need to actually focus
@usernameluis305
3 жыл бұрын
Pseudo intellectuals love making the definition harder to understand than the term.
@reasonableattempt1918
3 жыл бұрын
@@usernameluis305 wow, way to ruin the fun
@sensitiveecoterrorist
4 жыл бұрын
this dude blinked like four times thru the whole lecture i swear to god bro u on another level
@ITM95
4 жыл бұрын
Bro I just tried to keep my eyes open as long as he does and I nearly went blind 😂 wtf
@Someone-ig7we
4 жыл бұрын
There are cuts lol
@EdekLay
4 жыл бұрын
No he just blinked every time you blinked, that's why you didn't see it
@MsNovazz
4 жыл бұрын
Lol this comment and those replies surely made my day! 😂😂😂😂
@virgilioreneau1862
4 жыл бұрын
Dude, it's contagious. I didn't blink until I saw him blink.
@FlackNCoke
Жыл бұрын
This only really matters if you look at home ownership as a monetary investment, rather than a “not being homeless and dying in an alleyway because I can’t pay my constantly increasing rent” investment. The other thing is you can get a set interest rate mortgage way easier than you can get a rent controlled apartment, and while home value generally goes up with inflation, rental costs have skyrocketed way beyond the rate of inflation and will likely continue to do so unless the government steps into prevent it.
@eleftheriosmas
8 ай бұрын
He said the figures he talks about are after inflation. That also means that theoretically your wage and rent are increased by inflation equally. If they dont, then it effectively means that you are getting a cut in your monthly income and that is sth irrelevant with the comparison of what one option and the other offer in returns. You can bring in the factor you talk about when his analysis, gets specific enough to include the factor of volatility in the housing and job market vs volatility in interest rates, which ofc is a big win for ownership since interest rates volatility is much lower than rent and the job market one, plus mortgage ends while rent is eternal😂
@danijelkurincic
8 ай бұрын
Well, yes, but at the end of the day it IS an investment, with its pros and cons. Social sacurity of owning is not included in this calculus as is not the "being on my own" feeling or being forced not to blow your cash when you get that wage, but then the cost of feeling of being in debt or the cost of no liquidity. These are all legit, not so financial reasons that afe being completely omitted ... because this is a strict investment-to-investment comparison.
@nickdejesu
3 жыл бұрын
Buying a home is like a “forced” savings as many of us would find ways to spend the savings if it were easily accessible, like in a brokerage account.
@jmnthe3rd
Жыл бұрын
Retirement accounts are a great way to force yourself to save. A lot of people take home equity loans. Realistically, there is no legal way to truly tie up money in a way that you can't borrow against it.
@stuckupcurlyguy
Жыл бұрын
This is true - the numbers hold up if people are entirely rational and self-controlled. In reality the majority of people would benefit more from home ownership as it forces them to be good money managers. But if you ARE an excellent money manager, renting has many perks
@mn-ru4li
10 ай бұрын
Not true. I only got true financial freedom when I got a mortgage. I have an offset with $50k min in there, which I use to travel, shop, afford healthcare, etc. How you structure your loan is important
@Matt-wf7ry
8 ай бұрын
Only if you stay in the same house for a very long time, the savings evaporate if you keep buying and selling homes every few years due to the costs involved.
@barrbudo
5 жыл бұрын
Nice video! I will watch it again until I understand it completely.
@Pfsif
5 жыл бұрын
¯\_(ツ)_/¯
@KadianUrquhart
5 жыл бұрын
Me too
@leo729717
5 жыл бұрын
I am soo lost!!!!! I wish he said all this in english lol
@addiemaysonet1
5 жыл бұрын
Yeah, i couldn't understand a word either!
@alcaedafiebre
5 жыл бұрын
@@leo729717 ikr canadians with their off brand english, too polite
@VictoriaWood-uc6mp
5 ай бұрын
The issue is that either the renter or the owner must in some way pay insurance and property taxes if they want a "permanent roof" with utilities like electricity, gas and water. Because of this, many people-at least in California, where I currently reside-are living in tents. No taxes, rent, mortgages, or insurance. The number of people who tell me they live in their car that I meet amazes me. Its crazy out here!
@Williamsmthe
5 ай бұрын
this is definitely considerable! think you could suggest any professional/advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
@EmersonLoyal
5 ай бұрын
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
@donutlovingwerewolf8837
4 жыл бұрын
This is suppose to be a Educational video but instead i am laughing so much after reading a comment about this dude not blinking at all in this video
@appiphynie
4 жыл бұрын
Me too😂😂 Like how is that even possible.
@TheSarge75
4 жыл бұрын
Plot twist: he blinks when you blink
@pamjamas
4 жыл бұрын
Maybe he’s an android
@saurabhkumarsingh5970
4 жыл бұрын
@@TheSarge75 thriller scene
@manuunam23
3 жыл бұрын
0:14... it’s not even that long of a time
@chrisd6736
4 жыл бұрын
I need a rent vs squatting comparison.
@compresswealthdivideeconom3757
4 жыл бұрын
Overpaid power monger cops love to hurt the poorest. Long ago I got kicked out from having a terrible mother and I couldn't find a place to park and sleep as cops keep wanting to ruin my existence.
@candidosantay6142
4 жыл бұрын
😂
@sirving1297
4 жыл бұрын
What is the unrecoverable cost of becoming a heroin addict gutter punk?
@kyrie4451
3 жыл бұрын
LMAO. I have considered parking my car in the company underground parkade to eliminate rent/utility cost...
@May13Tiffanyyy
3 жыл бұрын
🤣🤣🤣👌🏽💪🏾
@michael2275
5 жыл бұрын
The 3% equity return on the house is leveraged 5x (20% down) compared the assumed alternative of an un-leveraged stock purchase. So it's really more like 15% compared to 6% expected return.
@ericchow2024
5 жыл бұрын
This is exactly what I was thinking when watching the video. You cannot direct compare a return of 500k x 3% = 15k per year VS 100k x 6.57% per year 6.57k per year. Basically you have borrowed a whole lot more of money to invest in the property to gain 5 times more, also having the benefit of locking future inflation rate on the house too. I hope Ben can reply to this...this makes a huge impact on this 5% rule.
@ThomasFoolery8
5 жыл бұрын
When you’re leveraged 5x you lose 5x as much too. You can easily leverage 5x in stocks too through futures contracts.
@michael2275
5 жыл бұрын
@@ThomasFoolery8 that wasn't the scenario he was supposed to be comparing though....
@BenFelixCSI
5 жыл бұрын
The leverage is declining over time, the cost of the leverage is paid by the home owner (unrecoverable cost), and equities have substantially higher expected returns than the unlevered real estate asset. The expected return on the levered house is 15%-3%=12% in the first year, and declining thereafter due to decreasing leverage. If you need to see how this plays out in a side-by-side comparison I suggest this paper: www.pwlcapital.com/wp-content/uploads/2018/06/2017-07-07_Felix-Benjamin_The-Case-for-Renting_FINAL.pdf
@michael2275
5 жыл бұрын
@@BenFelixCSI You already accounted for the 3% interest in your prior calculation so it is 15% vs. 3% not 12%. I agree that is the starting point and deleverages with time. Still means this basic assumption for your video is wrong and messes with the results.
@dendrites
8 ай бұрын
Had you bought a home when this video was posted, you would have a 3% APR mortgage and your house would be worth 40% more than you purchased it. Had you not, you would be paying historically high rent prices, and are priced out of the housing market.
@tagore161
5 ай бұрын
False. You are clearly not a home owner. Try selling them, none will fetch you 40% returns
@HinesBrad
4 жыл бұрын
You did not calculate the likelyhood of moving. Moving costs eat us alive when relocating and that greatly impacts return. Don't buy if you won't stay put for at least 5 years.
@whatsupbudbud
4 жыл бұрын
Try living with less stuff, it feels great. I can move with my small car with 2 to 3 rides for practically nothing.
@andrewgingrich8281
4 жыл бұрын
@@whatsupbudbud he is talking about the cost of selling the house bud, not the cost of moving your small amount of shit
@Wise_That
4 жыл бұрын
Yeah, the transaction costs (e.g. realtor comission) will easily add another 3% to the costs of the home. So the rule should be 8%
@alfredmashava2277
4 жыл бұрын
@@Wise_That The transaction costs would be a once-off cost, while the 5% represents recurring annual expenses, so the two can't be added together.
@michealdrake3421
4 жыл бұрын
This. My wife and I want to buy rather than rent, because when we have kids we want to raise them in our own house. But we're also planning on moving across the country within the next five years so we're throwing money into the rental hole for now
@tenshi53
4 жыл бұрын
So, if I understood: -if you have no money, rent -if you have some money, rent and invest -if you have lots of money, buy if you have too much money, buy and invest
@KnowledgeSeeker78491
4 жыл бұрын
If you had bought your home during this video, you would have the options to skip payments up to 365 days due to this pandemic... If you are renting then you better have a very empathic landlord Always buy real estate... Look at my avatar 😂😂😂😂
@teliramirez3914
4 жыл бұрын
Go ahead and rent just remember your landlord dosen't love you. If your landlord could repair everything with duct tape and still keep you paying rent he would do it.
@ironmonkey1512
3 жыл бұрын
I am in contract now, I have been renting the last 14 years and it stinks. In two cases, the owner decided to sell so I had to move my family with 30 days notice. You are always in someone else's house, you cannot have anything they way you want it. My house now has dripping shower the owner refuses to fix. It makes sense if you are a young professional and want to stay mobile but it is a lousy long term lifestyle.
@ironmonkey1512
3 жыл бұрын
@@3timesiller the entire valve needs to be replaced smart guy
@ironmonkey1512
3 жыл бұрын
@@3timesiller what kind of idiot are you? Yes I can fix. No I am not going to do it. It's not my house or responsibility.
@douglaswilliams6834
5 жыл бұрын
One thing I don't think you mentioned is, if you buy a home, you won't have that mortgage forever. It will eventually be paid off, and then your only expense of owning a home is the property tax and maintenance/renovations. I'm 53, and my house has been paid for for many years now. If I had made the decision to rent instead of buy, I would still be paying rent.
@mick2d2
5 жыл бұрын
Douglas Williams The value of your house is also a “buffer” if things go tits up.
@sweetfayce18
5 жыл бұрын
Isn't maintenance and property tax along with utilities (light, gas, water) bills hanging over our heads during retirement?
@Cfergsthebest
5 жыл бұрын
That initial stock investment will eventually produce interest that will exceed rent costs and have a principal value greater than the house.
@elearnej5524
5 жыл бұрын
@@Cfergsthebest people dont want to be bothered i guess, the only real and only downside to renting is credit scores take into account if you have a mortgage or not.....
@mick2d2
5 жыл бұрын
Cfergsthebest Which initial stock investment is that? My (albeit limited) experience with stocks and shares has taught me that it can be a bit like going to the casino! Granted, house prices can also be a bit of a roller coaster too. Clearly for people who move around a lot, rental is perhaps the only choice, but if that’s not your case, I think buying can have certain advantages. It forces you to save money for one, you’re accumulating a nest egg for two, and as I move towards retirement, I don’t want the worry of thinking about where I’m going to live and how I’m going to pay for it. Accommodation cost is probably your biggest monthly expense through life. You don’t need that much money to live on, once this is eliminated.
@adrianpaz7310
3 жыл бұрын
What a lot of these analyses don’t consider is that rents increase annually, where mortgage payments are largely fixed
@JohnD418
3 жыл бұрын
Technically instead of borrowing money for a house, if you rent you could also borrow it and invest somewhere. So the comparison would be fair. But i dont think that's really possible, so you are right
@TheInsomniaddict
Жыл бұрын
They're fixed as long as interest rates don't change/go up, which they're doing right now.
@TioMogi
Жыл бұрын
@@TheInsomniaddict still fixed assuming you have a fixed rate mortgage and didn't try to gamble with a variable. Property taxes would go up over time though
@chreechree6900
Жыл бұрын
@@TheInsomniaddict That depends on where you live and what how your country's banking system does mortgages. In the U.S., fixed is truly fixed for the whole term of the mortgage. I've got a 2.25% mortgage rate locked in for all 30 years. So, long-term, that's another advantage. I realize this is a Canadian KZitem channel, but people from all over, living in different systems, are viewing the content, so they often talk past each other because they're entering the discussion with their own assumptions based on how it works where they live.
@eliastouil7686
4 ай бұрын
Watching in 2024 💀
@mattisonhale6227
3 жыл бұрын
Great to get clarity on the financial aspect. Still, the reasons I lean towards ownership are less numerical. I don't want to be at the mercy of a landlord for _anything_ at all.
@jasonjames4254
2 жыл бұрын
Yes, I truly think that is the greatest advantage of ownership. The greatest disadvantage of ownership is being stuck in a more inflexible situation, such as having terrible neighbors or a declining neighborhood with decreasing property values.
@latsnojokelee6434
2 жыл бұрын
Of course the flipside is it’s great to call somebody and say hey come fix this and they come without asking you to pay $100 for the first 25 minutes (plumber and electrician) Or having to take out another loan To pay off the $7500 new HVAC system you had to put in
@haylxx1
2 жыл бұрын
@@latsnojokelee6434 too bad maintenance never shows up
@StoutProper
2 жыл бұрын
@@haylxx1 then take it out of the rent and go for the most expensive option
@jae1726
2 жыл бұрын
Is that really worse than being at the mercy of a bank…?
@hyiux
8 ай бұрын
Not having to deal with a bloody landlord is a joy that itself is worth a lot.
@rorymacintosh6691
Жыл бұрын
Really great, thanks! Another unrecoverable cast of homeownership is Insurance, which is higher for homeowners then renters. However, mortgage payments force a financial discipline that is hard to match with discretionary saving - the psychological component of this doesn’t appear in the numbers.
@pprb123
Жыл бұрын
In addition to the price difference, only 50-60% of renters have insurance at all
@BigFanCooks
9 ай бұрын
Oh yea once you own a house always something to spend money on.
@danshrdr
8 ай бұрын
The only reason I have good savings habits was because I purchased a home and have to pay a mortgage, this outweighs potential higher returns elsewhere in my personal situation
@ShadowCatDreams
8 ай бұрын
Homeowners insurance and mortgage insurance if you didn't put 20 down. It adds up ridiculously 😔
@ShadowCatDreams
8 ай бұрын
Homeowners insurance and mortgage insurance if you didn't put 20 down. It adds up ridiculously 😔
@sunnyd4734
4 жыл бұрын
Never wanted to deal with the whole mortgage thing let alone home maintenance and repairs. It's a matter of personal preference. Happy as a renter.
@whatsthebigfndeal
5 жыл бұрын
There are positives and negatives to owning a home. My home is paid for, so no mortgage, but it will never truly be mine. If I don't pay annual property taxes for the rest of my life I'll be on the street. I'm basically "renting" from the state. Any improvement I make to the home adds to the property tax and any repairs are my responsibility. My central ac unit just went down last month. That's $3,900 out of my pocket. There are a million and one things/expenses that you never think about when you're renting. Plus, my neighborhood has went downhill so my home is worth less now than it was 20 years ago. Still, though, considering my income compared to the cost of renting these days, I'd have to live in a shithole apartment and be very frugal just to get by. In my current area (small town south Georgia) ownership is a better option as houses are cheap, generally making monthly mortgages much lower than monthly rent, but when I was living in Philly ownership wouldn't have made sense for me. I think it's mostly a choice you have to make based on where you are in life. I'm old and settled so owning is nice but if I were still a young man it would be hard to make that kind of commitment. Renting with short term lease agreements allowed me to move around whenever I got tired of where I was. I'd probably still be rambling around if it weren't for a pretty girl with bright blue eyes and a smile that still makes me feel all warm and fuzzy.
@gabrielladots5990
5 жыл бұрын
Aw ......the bottom line: women make men better 💕. All the best to both of you.
@isaaczaiek487
5 жыл бұрын
how is that any different from China where people can't own property? People rent from the state.
@darthnatas953
2 жыл бұрын
@@isaaczaiek487 No different. Governments everywhere are blood suckers.
@Roadrunnerfan-vg2bp
5 жыл бұрын
Some great points, however the formula does not account for the fact that a mortgage is a fixed cost per month and rent is variable and will inevitably increase. I'd like the formula to include the average increase in rent over time which will minimize the opportunity cost of buying by progressively limiting the investment capital.
@karlbassett8485
5 жыл бұрын
Yep. I bought my home over twenty years ago. My monthly mortgage is now 15% of what I would be paying for rent if I was renting my house. "Losing" 5% unrecoverable costs is far better than losing 100% of them, and I have saved a fortune over the years. And in a couple of years that monthly mortgage payment will stop and I can live in my house for the rest of my life rent and mortgage free. The property tax and maintenance costs are a fraction of what I'd be paying in rent. If they weren't then how could the landlord afford to pay them out of my rent? Plus as an owner while I have to pay for a new kitchen or bathroom it is my decision if and when to do it, and I get to choose the colour of the tiles, the brand of appliances, the fixtures etc rather than having to accept whatever the landlord decides.
@eezy251able
5 жыл бұрын
I think it depends on your life style. For example if you are buying a house to live there for say 10 years like yourself then it makes sense to buy l. However someone with money may want to invest that Money say into oroperty where they receive passive income, in theory overtime paying for their rent while gaining capital appreciation. The house you live in wont ever pay you. The houses you rent out etc do. This is wht a lot of rich people rent where they live, and buy where they dont. Just depends what's best for you.
@karlbassett8485
5 жыл бұрын
@@eezy251able How can owning a property you rent out get capital appreciation but a property you own and live in doesn't? A house you own can certainly pay you back that appreciation. I could sell it and move to a smaller and cheaper home and keep the difference or move to a rental and keep all the cash.
@amirkalaji6753
5 жыл бұрын
Also if you rent and the owner wants you out, you have to move. Perhaps you are really confortably there (close to work, schools for kids etc). And.. you can improve your home (I love to dedicate time taking care of my house).. something I wouldnt do if I rent.
@eezy251able
5 жыл бұрын
I've think you've miss understood me. Owning a any property can gain capital appreciation. Hence why people remortgage their previous rented properties in order to buy another.....and so forth..
@aLmAnZio
4 жыл бұрын
All this assumes that, if you rent and not buy, you'll spend your money wisely. Yeah, right...
@ralphet9416
4 жыл бұрын
Yes I agree, I always looked at a mortgage and home ownership as a kind of forced savings plan...
@skywalker6648
4 жыл бұрын
@@ralphet9416 Or credit card. You can never look at a rental that way.
@AdonisGaming93
4 жыл бұрын
I mean I'm pretty good at it. I save over 50% of my income to invest for my future. So i seem to have good self control lol
@felixarbable
4 жыл бұрын
AdonisGaming93 where i like most people are spending 50-60%of their income on rent and a 1 bed apartment in a shitty area can be 1million dollars and 2 million in a nice area
@seemlesslies
4 жыл бұрын
@@skywalker6648 the thing is you have to live in your house. It's something you can readly see constantly. The threat of losing your home is a pretty big deal. The threat of losing your stock is an abstract concept. Most Americans are horrible at using their expendable incoming on investments outside of tangible goods.
@igorben7323
2 жыл бұрын
The economic hardship, recession, unempLoyment and the Loss of job caused by covid 19 pandemic is enough to push people into financial ventures.
@grantleoson4681
2 жыл бұрын
I have secured financial freedom by investing in bonds, equities, EFT's and some digital currencies.
@leonardojacobo8411
2 жыл бұрын
@@grantleoson4681 You again
@milanthomas2408
2 жыл бұрын
Assets that can make you rich Cryptocurrency Real estate
@rodriguezpatricio957
2 жыл бұрын
Smart people learn from everything and everyone, average people from their experiences, stupid people already have all the answers
@binaarya8420
2 жыл бұрын
@@rodriguezpatricio957 That's why you need the help of a professional who trade and understand the market more to earn 9ood income. These professionals understand the markets Like it's there own farm and makes maximum profits for investors
@gazoutg
8 ай бұрын
When I bought my house, renting was 700$/mo, my house cost 850/month. 10 years later, that same appartement cost now 1200$/month, My morgage still cost me 850
@Nitro_Joe
5 жыл бұрын
I’m at a loss. I was always told that a home is not an asset. A house that is not your primary residence, is an asset. Your home, where your kids live, is not something to be flipped.
@pgoeds7420
5 жыл бұрын
What if I told you to believe less of what you're told? monevator.com/why-house-is-an-investment-and-an-asset/
@jordanharkness
5 жыл бұрын
An asset is a "useful or valuable thing". A liability is basically a debt. Assets can gain, or lose value. For example, your house and car are both assets. Your house likely increases in value, your car likely decreases in value. Liabilities are basically things you owe; Your mortgage is a liability as it is a debt that needs to be repaid. Your car loan is a debt that needs to be repaid. Whomever told you that a "home is not an asset" doesn't understand what they are talking about. They likely mean that in their experience, their house (asset) has decreased in value or has had expenses that exceeded the increase in value for a net loss. Just because an asset loses value, doesn't mean it's not an asset. The definition of the word remains... it's a thing of value.
@jesse3105
5 жыл бұрын
You're confusing "asset" with "investment" which is easy to do. Some finance books (Rich Dad Poor Dad) want you to frame them as completely different things as a mindset while most would say there is overlap between the two especially when thinking in terms of net worth. Your home is an asset, because it contributes to your total net worth. A house that you don't own is an investment (a class of asset with the main intention of storing/increasing capital). In this same sense (thinking in terms of net worth), your car is an asset too (contributes to your net worth), but it's definitely not an investment because it depreciates in value and incurs further upkeep costs. So while it contributes to your net worth, it is better framed as a liability to the every day person.
@mgntstr
7 ай бұрын
This really really hammers home how much of a waste of money it is in renting a home that is a glorified shoebox compared to owning a home at the same unrecoverable cost value. Almost at the construct a brand new and spacious house level.
@sleeplessstu
Жыл бұрын
Over the years, I have simply built an ADU (rental apartment) into each of my houses to help cover the mortgage and property taxes. Using this strategy has now largely unburdened me from my mortgage. I pay much less now for my mortgage and taxes compared to an equivalent rental property in my area. Of course property taxes go up year over year, but so do rents. Equity is the name of the game. There’s a reason why most fortunes have (at their core) a substantial estate component.
@rafasimsim
3 жыл бұрын
Renting instead of buying worked for me. Future became unexpected and I was financially free, with no debt and cash available to bear what was coming
@davisholman8149
2 жыл бұрын
oops🤗 SHTF - I have enough room to house my children & grandchildren. That is a great feeling of security.
@ProfoundFamiliarity
8 ай бұрын
After a mortgage is paid off, the only costs are utilities, tax and repairs, which can hopefully be paid on a pension. Whereas renters must pay an ever-increasing rent into retirement, which may eventually exceed their pension, leaving them homeless. This is a fear for me personally, as a renter.
@kadengonzales9946
2 жыл бұрын
Something I think is important to remember is that when you are renting, is that the “unrecoverable costs” of buying a house are part of what you pay in rent. You are paying down the mortgage for the landlord and typically (unless the landlord is not making any money), the property taxes and maintenance costs are also factored in, as well as a couple hundred bucks extra so the property is cashflowing. As a real estate investor I recommend buying a house instead of renting always.
@keco185
2 жыл бұрын
I think I remember reading somewhere that you buy a house if you plan on staying there 7+ years and rent if you’re staying for a shorter time
@robocop581
9 ай бұрын
@@keco185Depends on the quality and location of the property and the market you're in. I bought a condo in Vancouver in 2015. I decided to leave after nine months. I sold my condo on first day of listing and after deducting all related costs plus capital gains taxes I walked away with a net 32% gain. Had I listened to "experts" I would've had to pay to break lease on an apartment, rent for the nine months plus the profit on the property. Don't listen to experts, trust your knowledge.
@baassiia
8 ай бұрын
Agree. We are renting two flats that are now debt free, we live in house with a mortgage which is almost fully cover by those two flats that we own. Capital acumulation is a real deal.
@nate19
Жыл бұрын
He's definitely human and not a lizard person that doesn't need to blink.
@KevinNijmeijer
8 ай бұрын
Capitalist be like 👀
@tim71pos
7 ай бұрын
Nonetheless, one needs to keep in mind that a large majority of the millionaires in the United States made their money in real estate investments, not in the stock market.
@adlantian6334
5 жыл бұрын
What I learned from this is that I'm too dumb at math and finance to buy a home lol
@hosmerhomeboy
5 жыл бұрын
then it was worth it- no shame in knowing your limits. Worst way to piss away the decades is a house loan you hsouldn't get or don't need.
@ema8413
5 жыл бұрын
You probably werent being serious but when i was looking to buy all lenders would only lend 4x your wage(single person)/joint wage with partner (after tax). So your take home pay (monthly) x 12 = yearly salary. minus any credit cards & debts. Yr salary x 4 = max you can lend.
@TheBanderson22
5 жыл бұрын
You're just uneducated. Probably not dumb.
@pawsnotclaws2772
5 жыл бұрын
Alex Landon lol same
@delsur7635
5 жыл бұрын
And so now you know that some of that math they were trying to shove down your throat in high school actually was something you'd find useful later in life (I mean,who knew? it's not like they gave real life examples) -- what are you going to do? Suggestion: there are remedial math classes at most community colleges. Or better yet, see if you can skip the class and just get the name of a math tutor there. Ask him / her to teach you the parts of math you don't know -- as you realize you need them. E.g. Go to the math department and say I want to hire someone to explain the math in this video to me. Do you have any recommendations? Or if you don't feel comfortable doing that -- look for a bulletin board with listings of math tutoring offers. For many, math makes more sense when it has a practical application -- don't sell your math abilities short. You may be surprised how it suddenly makes more sense when how to do it is presented as part of a way solve a real life situation. (You may need to be daring and let go of your 'it's too complicated for me' beliefs first. Surprise yourself! If the first tutor you pick doesn't do it for you. Try again till you find the one who understands how you learn.)
@optionenergysolutionsltd6611
3 жыл бұрын
You missed a very important factor. The value that a home has on a personal level with no landlord rules, restrictions on improvements and evictions. This is worth a great deal to most people.
@alankoslowski9473
3 жыл бұрын
There are usually rules either way. Maybe an HOA or local ordinances, though yes, there are usually fewer with owning.
@abz4852
Жыл бұрын
you can say the same about the flexibilty of relocating with renting. Either case are not really geared to financial value. If that was the argument then rent goes out the window regardless of how advantageous/disadvantageous it might be
@optionenergysolutionsltd6611
Жыл бұрын
@@abz4852 Not really, because renting isn't generally a choice. The barrier to owning a home is massive. The barrier to renting is small. It doesn't work both ways.
@abz4852
Жыл бұрын
@@optionenergysolutionsltd6611 sorry I dont understand what is the barrier difference? Are you talking about being able save and put a deposit down for buying as well as getting approved for a home loan?
@optionenergysolutionsltd6611
Жыл бұрын
@@abz4852 Exactly. Most people where I'm from in the South East of England need to save around their annual salary and show qualifying earnings to get a mortgage. Renting is easy. Less than a month's income, and a reference. Almost everybody places a far higher value in having the security and comfort of your own home over the flexibility of renting.
@RobsRedHotSpot
8 ай бұрын
Another aspect of the rent vs buy decision is transportation costs. If you rent downtown walking distant to work and avoid all the expenses related to car ownership you could save an enormous amount of money as opposed to owning in a suburban area and commuting via car.
@derekwong1063
5 жыл бұрын
What about leverage? The ROI on real estate is usually heavily leveraged (mortgage) over quite a long time. Wouldn't you lose opertunity cost on $100k/500k, but the remainder 400k leveraged gained offset that.
@keltonjohnson6197
4 жыл бұрын
I like this. I think it is missing HOA fees depending on the property type. In some places that could be .5%-2%.
@kippen64
3 жыл бұрын
That's an insane amount of money. So glad that we don't have that in Australia.
@frenchfilmmtheband2556
5 жыл бұрын
This isn’t a one size fits all it really depends on you personal situation and needs.
@flavius29663
8 ай бұрын
Hi Ben. What I don't understand is how you can equate stock growth with house value appreciation? For the house scenario, you're missing out on stock growth of only 20%, while gaining value for the 80% amount that is the mortgage. For example, if you have 100k that you can either invest for 6.7% returns or put a downpayment for a 500k house, the whole house of 500k gets the 1.7% appreciation, not just your 100k. It's like investing with a 5x leverage, in a very safe asset. Am I missing something, or did you already address this in the video?
@dustincrossland4424
7 ай бұрын
I came here to say this. His example regarding the return on real estate only makes sense if you paid with 100% cash.
@BenFelixCSI
7 ай бұрын
Leverage from the mortgage makes the math very messy. It’s not as clean as I say in the video, but it’s not as clean as your example either. Mortgages are amortized. All the cash flows that go toward mortgage principal for an owner can be invested in higher expected return stocks for a renter. When I model it, the 5% idea (though higher in 2024) still works out. If you can get an interest only loan it will look much better than renting.
@reidr9439
4 жыл бұрын
Thank you for this video, I learned a lot from it. But I started to think there's a piece that's missing. It seems as though growth in housing values should be included on both the equity and debt sides while you include it only on the equity side. If I'm right, the 5% unrecoverable cost of debt is reduced to 2% in the scenario described, which would suggest that the unrecoverable cost of owning is less than 5% overall when it's leveraged with a mortgage. It also suggests that overpaying your mortgage would increase the overall unrecoverable cost of owning since that overpayment would provide a return equal to the mortgage interest, which is below what was assumed to be the return from the stock market. In your model, mortgage overpayments don't have any affect on expected net worth. Anyway, this is my best guess. I hope it makes sense. Thanks again!
@jamesmenefee5519
2 жыл бұрын
Reid, you posted this a year ago but thought i'd chime in on it anyways heh. You are correct. Paying down the mortgage faster leads to a higher unrecoverable cost thus making it more efficient from an investment standpoint to not do that and instead invest those extra funds. Even in today's inflationary environment. In fact, Dave Ramsey has mentioned the same thing, and even openly admits that paying off the house sooner than when it is due is bad financial advice, but the reason why he says to do so anyway it is because the feeling of relief people have after doing so he feels is worth more than the extra money you would get at the end.
@ianmackenzie8831
8 ай бұрын
Another consideration is inflation. A low fixed interest loan is an excellent hedge against inflation. Not only does your rent not go up, the dollars you are repaying the loan with are worth less than the dollars you borrowed.
@martinmagar5148
5 жыл бұрын
When comparing the return of investments for the mortgage vs stock there seems to be one flaw. The stock return % make sense. But for mortgage we should not forget the leverage you gain from the loan. Meaning that the real-estate 3% per year gain should be based on the home value, not your mortgage down payment value. At 20% down payment the leverage makes the 3% yearly gain in real-estate value into 15% gain on your "investment" value. Quick example that does not include mortgage payments and transaction costs: You buy a house that is valued at 100,000 with a 20% down payment of 20,000. This means that the you got a loan for 80,000. One year later you decide to sell. The house has increased value by 3% so now it is worth 103,000. Upon selling the house you pay off rest of the 80,000 mortgage and are left with the 20,000 of the initial down payment AND 3,000 of the value increase. So total 23,000 after a year. 20,000 to 23,000 is a 15% yearly gain. The leverage can of course work in the opposite direction as well. If the value of the house is decreasing at 3% per year then the 3% is not applied to your down payment, but to the house value. Thus you could be losing 15% per year thanks to leverage.
@adrianz8394
4 жыл бұрын
Do you also have to consider a prepayment penalty if you "pay off" the mortgage too early?
@Beyondthebreakers
7 ай бұрын
HOA and flood insurance in Florida now may easily exceed mortgage payment. Plus, with renting you get more flexibility.
@hhjhj393
8 ай бұрын
I have never rented an apartment but personally when ever people say, "oh rent an apartment it's less responsibility" the argument makes no sense to me.... I have talkee to a lot of people who have rented and obviously read a bunch of apartment reviews and the responsibilities of owning an apartment seem just as bad as a home if not worse. Having to deal with management, parking fines and fees, if something breaks in your apartment you can't fix it or have to wait for maintenance.... I have heard horror stories where people get CHARGED for damage or water leaks in apartments, bad management can screw your credit.....
@ioanaiancu1823
5 жыл бұрын
Wow, watched a video and I already know your channel is worth subscribing to!
@festeringbull450
Ай бұрын
What about home owners insurance?
@douglasthompson9070
5 жыл бұрын
1% property taxes? More like 2.7% property taxes!
@ericl29
5 жыл бұрын
That's what I thought too.. I'm like 2.9
@caroline10081
5 жыл бұрын
The video was based on Canadian numbers. In Canada, healthcare and education are funded through provincial income taxes. In America, education is frequently funded through property taxes. Houses in good school districts cost a lot more than similar houses in bad school districts and all homeowners pay a lot in property taxes to fund their schools. Canadian public education is ranked in the top 10 worldwide; curriculum and standards are set by the province. In Canadian cities, public housing is often built next to middle and high income neighborhoods which prevents ghettos. The kids go to the same schools and see the same doctors as their richer counterparts. The families also use the same libraries, parks, and grocery stores.
@NotFinancialAdvice
5 жыл бұрын
Yes, they are over 2% in Texas... as we have no state income tax.
@douglasthompson9070
5 жыл бұрын
@@NotFinancialAdvice Yes, they get you one way or the other. With one big tax king or a bunch of little local, state and federal tax kings. At the end the cumulative tax rate is around that 50% mark. It's good to be the king!
@MaddRezz
5 жыл бұрын
@@douglasthompson9070 more like 34%
@daddytubewatches
5 жыл бұрын
Age is a primary factor in any equation of rent- buy.
@greenize4281
4 жыл бұрын
So is income.
@WINGCHARGER
4 ай бұрын
Awesome video I never thought about the benefits of renting and how it compares to buying
@xYoungDeezYx
4 жыл бұрын
What Ben conveniently doesn't mention is the leverage aspect to a real estate investment - even if you only had a 3% annual growth rate in real estate (which is very conservative if you live in any of the major cities in Canada), chances are you have anywhere from 5-10x leverage on that home. Meaning that the 3% growth is really more like 20-30% - far higher than even an aggressive equity portfolio could be expected to return on an annual basis.
@stevenxu5747
8 ай бұрын
What a logical and carefully-considered video. I wasn't expecting this from someone with an MBA degree
@danedickerson9433
4 ай бұрын
You also have to consider that when you purchase a home, even though your 20% down is being invested into real estate, you also have a mortgage that exposes you to even more real estate via leverage. The advantage of this kind of leverage over stocks is much lower risk of a margin call, which may happen if you borrow money to invest in stocks.
@sebastianagostino2133
3 жыл бұрын
I think you're mssing the leveraged aspect of the real estate return, bringing the real estate return up versus a stock portfolio. A traditional portfolio will not utilise leverage, while a house will be typically leveraged at 70% to 80%.
@javier2surf
3 жыл бұрын
This works both ways.....a leveraged asset in a down market can completely take you out....
@DenverBronx12
3 жыл бұрын
He's also not considering the positive impact on credit score that a mortgage brings and any future impacts on your opportunity costs for other major purchases (car, other property, etc)
@ChrisLee-yr7tz
3 жыл бұрын
Agreed. His analysis is flawed.
@benmurrell7634
2 жыл бұрын
I have a hard time with this assumption in the rent vs. buy decision. The only approach I've come up with is looking at all-in owning (including principal and tax considerations) and all-in renting (with increases). Any difference between the two goes into stocks which is meant to capture the equity opportunity cost of both sides, should renting become more expensive than owning. With Ben Felix's assumptions and a 20 price-to-rent ratio, renting is better than buying for anything under a 10 year time horizon. At least based on my math.
@sterlingmarshel6299
2 жыл бұрын
@@benmurrell7634 there are no tax considerations 85% of homeowners cannot itemize they simply get the standard deduction that you would get even if you were a renter. The biggest myth in real estate is that there’s tax implications and advantages On a primary home
@immortalsofar5314
7 ай бұрын
Also depends on stability and convenience. In my divorce, I lost as much to cover rent for that time even ignoring the mortgage payments. On the other hand, I remember the day when my RV had paid for itself in what I would have paid in rent. Now my unrecoverable costs are the cost of my van over however long I can keep it on the road minus the fact that I can live and work wherever I want at a moment's notice and if I don't like it, I can get something better wherever I can.
@shawn0fitz
Жыл бұрын
I just look at it in terms of cash flow. If I have a bunch of cash to put down so the mortgage is less than what I would pay for rent nearby, then it's worth it. But also consider what you need versus what a good investment is. I would only buy a 3+ bedroom house as an investment, but I might only need a one bedroom apartment to live in temporarily.
@tyranasazi3818
7 ай бұрын
This reinforces my belief as a committed Muslim, that engaging with riba (ursury), gambling (stocks) and not paying zakat are all root causes of the home affordability crisis in the West. This video puts the accumulation of capital as the first priority above all else. It talks about opportunity cost purely in terms of losing the ability to engage in rent seeking behaviour like buying shares. As mentioned by others here, the opportunity and utility of a home cannot only be measured in dollars. The current Western mortgage system sucks more than half of a family's income straight into the banker's pocket in the form of interest. Each low-interest cycle creates a wave of new mortgages. Young couples and families buying the dream, only to be crushed by high interest rates down the track. Interest cheapens money and reduces the supply of affordable housing. It overinflates the price of housing, turning a basic human need into a wild investment market. Instead of paying interest, we should be paying zakat, a percentage of our available funds (if we can afford it), which provides for the needs of those who for whatever reason are poor.
@spacetoast7783
7 ай бұрын
So what's the issue? People already pay taxes.
@mqayyum9226
5 жыл бұрын
Property tax is usually 1% of the homes value New Hampshire: LOL
@heatherlovesdeuteronomy
5 жыл бұрын
Mines 2% (white mountains)
@Trizzer89
5 жыл бұрын
It seems to change a lot city by city
@nancypritchard7575
5 жыл бұрын
Same for Maryland - close to DC
@psmith85channel5
5 жыл бұрын
NJ is 3.5 to 4% and higher
@AndresDiaz-hx8jz
5 жыл бұрын
Hah you ready boys? 5.4% in Bridgeport, CT.
@jmwild1
4 ай бұрын
I didn't see that homeowner's insurance (versus much lower renter's insurance) is mentioned. It's only a recoverable cost if you have to file a claim, otherwise it's unrecoverable (you don't get your premiums back when you sell your home). I always factor that in as well when weighing renting vs buying.
@royd.mercer1727
Жыл бұрын
You forgot to add something very important in this calculation...risk. Risk of rent going up... Risk of the mortgage getting defaulted... Finally, once the home is paid for, reduction of risk. "Opportunity cost" and the "spread" from one investment to another cannot be directly equated on the estimated return with factoring in the risk.
@jonaira9847
Жыл бұрын
I think you missed a point (one of the most important, IMO): buying a house with morgage, you earn the oportunity of invest at low rate and leveraged (which you dont have if you rent). On the one side, you pay the interest (low), but on the other you invest 80% of the house value with money that you didnt hace before, and you cant access that by renting.
@gvaud73
8 ай бұрын
Property Taxes and Mortgage Interest are tax deductible so I don't think you can define them completely as unrecoverable costs when comparing to rent. There is some value that can and should be applied.
@carrillo1228
Жыл бұрын
This is a very interesting way to think about this common problem. I’m in finance and I’m about to breakout a spreadsheet and start doing some math.
@theb0ldone459
7 ай бұрын
I feel like the cost of maintenance should probably be a function of square footage and property cost because it doesn’t take into consideration properties that are way more expensive due to location.
@justdanthankyou6399
7 ай бұрын
In addition to those mentioned, another consideration is behavioral. Making a mortgage payment includes equity. Making a rent payment requires you also have the self control and knowledge to make the stock investments on the side to capitalize on the opportunity. Opportunity cost is real, but few renters are actually taking advantage of the opportunity, meaning they suffer the same cost.
@kevinmcguire8965
7 ай бұрын
It is true that mortgages are a forced savings mechanism which many people need. Ben and Cameron discussed this in one of their podcasts, can’t recall which.
@ardicsobutay
8 ай бұрын
I am living in Germany and living in a 700K Eur home as a renter I pay 13k rent per year. The reason i am not buying is that labour costs of maintenance in germany. I believe any maintenance i might need to take would cost easily 10K.
@oleksua74
Жыл бұрын
I rent my entire life, I never worry about repairs, or unexpected issues. I travel anywhere and have a freedom to live in nice places. Buying a house is a thing of 70s. Plus when I retire I will to move to some Asian country and live like a king
@davidaustin6962
8 ай бұрын
Yeah, but in Asia. 💩
@BrunoGocan
4 жыл бұрын
Here I am, sitting down watching a video on finance with negative money in my account :)
@Bigboss-xe6lm
4 жыл бұрын
If you follow his videos i am sure you will be successful in your life!
@kabulbolan
4 жыл бұрын
Start working then you’ll have money
@maxprezas92
Жыл бұрын
Owning also allows for a new revenue which is becoming a landlord yourself which reduces unrecoverable expenses
@shosaisyu
5 жыл бұрын
Interesting insights, but I think it's really aimed at a higher wealth target audience. There is a lot of assumption being made that if I was not spending money on housing, that I could reinvest that money for a higher rate of return. However, the issue is, that the money that is spent on housing will always be spent on a place to live, as a place to live is necessary for all humans. Just because I am not spending money on a home, that money does not magically become available to invest, I will still need to devote part of my income to housing. With that being said, for the majority of americans, buying is always the better choice, because that money must be used to live somehow. This maks the investment of a home an overall smarter idea because it is capital that would dissappear from my pocket no matter what, and everyone must pay to live somewhere.
@Immakugleblitz
8 ай бұрын
I feel like the value of the home does not at all reflect upkeep costs. I live in Vancouver and nobody is dropping 7k a year maintaining their 1bedroom 700k downtown apartment.
@tikinang
8 ай бұрын
Hi, I believe one very important aspect of this discussion is the fact, that after you pay down the mortgage, you own the property. You can then live in that property rent-free or sell it, but mainly your children can inherit it, so you increase the wealth of your family in the long run. I consider deciding based on the informations provided in this video short-sighted. What are your opinions on this?
@davidh3636
5 жыл бұрын
I was thinking about why people rented and thought about this today. Confirmed my thoughts great video
@benicolay
7 ай бұрын
In the UK, renters are so poorly protected, that the rule is different: Do not rent if you can avoid it - that's the rule.
@ncaeon
4 жыл бұрын
So do I rent or do I buy? I'm still confused
@jorgeeduardodussanvillanue46
4 жыл бұрын
He gave you a rule of thumb. If you have the option to rent or buy, take the price you are given to buy, multiply it by 5% and divide it by 12. If that value is less than the monthly rent, then it is pretty sensible to make the effort to buy the place instead of renting it. It is based off on many assumptions though, and it will definitely depend on the real estate situation in your own country or even vary from city to city.
@ncaeon
4 жыл бұрын
It's sarcasm
@conorm2524
3 жыл бұрын
@@ncaeon The lowest form of wit.
@JakubMareda
8 ай бұрын
I am not sure how prevalent this is, but in my country the interest on your first property is tax deductible which I believe reduces it's cost by about 20%. But I am not really that sure about the math.
@SoulSeeker20
4 жыл бұрын
Video: a bunch of financial terminology My brain: *blue screen*
@Kelsdoggy
8 ай бұрын
Great video! I’ve been thinking a lot about this having bought a family home 50% loan. Personally I couldn’t rent with the lack of long term security for my family. And the rental properties were garbage. But I feel the pain of the cost of home ownership. Especially the cost of tied up capital as you pointed out.
@countmorbid3187
7 ай бұрын
In the Netherlands there was a company selling toilet cleaner and was called WC-eend (toilet duck) And their commercial always ended with: we from WC-eend advice using WC-eend ... And for every instance of ppl or brands promoting themselves we just say "WC-eend" You are making investing way easier, safer and more profitable than it really is. I went from investing in stock to investing in real estate. Best decision ever.
@spacetoast7783
7 ай бұрын
Stock investment is way cheaper and more liquid than RE investing. You can buy a share of VTI for like $245 and sell it in seconds.
@sometheam6136
5 жыл бұрын
Why am I watching this with $31 in my bank account
@EdgarDeSola
5 жыл бұрын
Buy a lotto, then it will make sense to you (If you win, of course)
@jrg305
5 жыл бұрын
@@EdgarDeSola that is horrible advice.
@jrg305
5 жыл бұрын
@@EdgarDeSola the lotto is not free... She would be wasting her money.
@EdgarDeSola
5 жыл бұрын
@@jrg305 There's never a free lunch! You pay one way or another.!
@TheCoachRC
5 жыл бұрын
That's all you can afford to do at this time. Keep stacking your paper and take notes from this video.
@snooppee7459
4 жыл бұрын
Came here to learn if I should buy or rent. Learned that I cannot beat this man in a staring contest.
@mar.sahakyan
4 жыл бұрын
Loll
@EloisaMartin4
4 жыл бұрын
Lol
@ND1966p
4 жыл бұрын
Is he AI???? He doesn’t blink 😂
@casao17
4 жыл бұрын
Hahahahahahahaha
@Champion2Manager
4 жыл бұрын
Hahahhaha
@DanCooper404
Жыл бұрын
1.7% inflation? 😍 Ah, the good old days.
@fablouis9783
8 ай бұрын
15% today ❤
@homomorphic
8 ай бұрын
Ahhh, the good old days when someone would call the days of 1.7% inflation the good old days.
@homomorphic
8 ай бұрын
@@fablouis9783 actually, 3.7% annualized here in the US.
@shaprensteel1
8 ай бұрын
@DanCooper404 does the inflation number actually matters, if both real estate market and the stock market catch-up inflation in a similar way
@homomorphic
8 ай бұрын
@@shaprensteel1 yes it matters. The value of real estate tends to rise at at least the rate of inflation, while the market tends to decrease during times of high interest (which is the typical governmental response to high inflation). This is why real estate is usually considered a hedge against inflation.
@shirelylinero
Ай бұрын
Biggest lesson i learnt in 2023 in the stock market is that nobody knows what is going to happen next, so practice some humility and low a strategy with a long term edge.
@Danielchirs
Ай бұрын
Nobody knows anything; You need to create your own process, manage risk, and stick to the plan, through thick or thin, While also continuously learning from mistakes and improving.
@Sofiarita-m9w
Ай бұрын
True, initially I wasn't quite impressed with my gains, opposed to my previous performances, I was doing so badly, figured I needed to diverssify into better assets, I touched base with a portfolio-advisor and that same year, I pulled a net gain of 550k...that's like 7times more than I average on my own.
@Bismarksolomon
Ай бұрын
This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?
@Sofiarita-m9w
Ай бұрын
NICOLE ANASTASIA PLUMLEE’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@Bismarksolomon
Ай бұрын
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
@Greggsberdard
3 ай бұрын
No financial institution should be allowed to own 40% or more of the single family homes. This recession is paving a way for a monopoly on homes to further rid of the middle class. It would be wise for most Americans to not sell their homes if they're able to.I want to buy houses cheap in 2024 and maybe invest in stocks. When's the best time to buy stocks? Some say they make a lot, others warn the market is risky. Advice?
@VictorBiggerstaff
3 ай бұрын
If you're new to investing or don't have much time, it's best to get advice from an expert. Investing without proper guidance can lead to mistakes and losses. I've learned this from my own experience.
@crystalcassandra5597
3 ай бұрын
The housing market has always had its ups and downs, but it's true that this time feels different. Having a portfolio manager will save you a lot in the market. My coach has helped me expand my portfolio by 200% over the past few months.
@crystalcassandra5597
3 ай бұрын
Rebecca Noblett Roberts is the licensed advisor I use. Just search the name. You’d find necessary details to work with to set up an appointment.
@BateserJoanne
3 ай бұрын
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
@everlastingarms3065
2 ай бұрын
@@crystalcassandra5597 These are all bots, and Wolfe is a scam. Ignore.
@HugoBergmann-lu4nd
2 ай бұрын
Back in 2007, during my time working in real estate, I witnessed people purchasing newly built homes from builders with the plan to sell them before the closing of escrow to another buyer for a profit. The crash hit hard and fast, and I vividly recall many of these units ending up foreclosed upon, with the builder's plastic still covering the carpets.
@LiaStrings
2 ай бұрын
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
@StacieBMui
2 ай бұрын
The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
@cowell621
2 ай бұрын
Due to the market falls, I need advice on how to rebuild my portfolio and develop more successful tactics. Where can I find this teacher?
@StacieBMui
2 ай бұрын
Sonya lee Mitchell is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@lolitashaniel2342
Ай бұрын
Thanks for sharing. I searched for her full name, found her website immediately, reviewed her credentials, and did my due diligence before reaching out to her.
@suehwan
4 жыл бұрын
we gonna need Renting vs Live in a Van down by the River comparison
@deborahundergrace2776
4 жыл бұрын
hahahAHAGAHAHA
@wordzmyth
4 жыл бұрын
Live in a camper up by the barn on the hill for me, but yeah.
@Unforgiveness
4 жыл бұрын
in all seriousness, i think this 5% rule still applies. You would then be taking the Van as owned property, and the unrecoverable cost would be gas, maintenance, and maybe parking tickets?
@tonythetiger9839
4 жыл бұрын
van wins every time
@vihbidao7143
4 жыл бұрын
Lol
@gavendano92
Жыл бұрын
Ben - it would be extremely interesting to see an updated version of this video using the latest interest rates.
@adpmilne
Жыл бұрын
This. Both sides of the equation are quite different right now. He's looking at long term averages, but I wonder who's buying on long term averages after wathcing home prices crash 15% last year.
@samanthasamuels4645
Жыл бұрын
😂😂😂😂
@FratAsh
Жыл бұрын
The 10% rule 😢
@stuckupcurlyguy
Жыл бұрын
The whole point of this video (and most of Ben's videos) is that you shouldn't react to short-term changes in the market because it's impossible to predict or extrapolate these into the future.
@fallonfpv1097
Жыл бұрын
Lol
@jtstanley26
4 жыл бұрын
Takes a shot every time he blinks.. still sober
@dustindavis8
4 жыл бұрын
LMFAO
@MrAmotoma
4 жыл бұрын
Genious
@ridwanmichaelwelong7
3 жыл бұрын
You a fool😂😂😂
@jayc4715
3 жыл бұрын
Holy shit..hes a robot
@TotallyAwwwesome
3 жыл бұрын
🤣🤣🤣
@frogery
4 жыл бұрын
what i learned: keep living at home with parents
@sanakiddy2883
4 жыл бұрын
Thats not silly ...thats what billionaires, millionaires and politicians children do. Why start from level 0 in every generation. Thats the secret of rich. Thats the culture in asian countries too. Rich kids start from a higher platform bcoz they do not fly the nest. Kids flying the nest is the worst thing for a family tree in practicality.
@sanakiddy2883
4 жыл бұрын
@@David_prod-eNGee ha ha ..dont know ..may be what i commented is an obvious open secret. By the way i am from asia ..in our culture ..if a father has two kids he tries his best to have his children live with them all through life ...split his home into 3 portions one for parents one for son one for daughter. Some dads simply buy two homes for two kids. And the next generation kids do the same so there is no bankruptcy / no homeless poverty or there is no this weird thing of every kid starting from zero. Every kids stands on his dads wealth platform and go above from there . Cheers. In my case ..my grand dad has 3 kids so he left 3 homes for 3 kids ...my mom got 1 home and my dad got 1 home .i myself purchased 2 homes. So thanks to my grand dads wisdom ..i own 4 homes on my side alone. My wifes parents have a home including that we have 5 homes for our 2 kids. This is how wealth is built. Cheers have a great day. And all the while we lived and living with our parents in a same home. Their guidance is added bonus.
@pingdingdongpong
4 жыл бұрын
At the expense of unrecoverable cost of sanity.
@sanakiddy2883
4 жыл бұрын
@@pingdingdongpong when we say living with parents, its kind of the home is split into 3 portions.of living area ..we have common kitchen, common electricity bill, common cars, common cooking and cleaning maids, common property tax, our parents guide our kids we never risk baby sitters, kids get monitored when we tour on work assignments, and the list goes ...its a win win ..with some give in take back.cheers.
@sanakiddy2883
4 жыл бұрын
@@pingdingdongpong and in the western world ..children of millionaires, billinaires, politicians, business men mostly follow asian life style and they dont become homeless all of a sudden like other common man westeners. Its weird someone from a well to do family going homeless in a matter of a few years.
@Odette-l9v
6 ай бұрын
investing requires good experience and knowledge to carry out a good and successful trade, I have lost a lot trying to trade all by myself May I ask which investments are good??>>>>
@ivesvaz2894
7 ай бұрын
Man this is gold, I'm seeing a lot of comments on the numbers you've used - but people don't get the point. Just being able to pin down which variables to consider in this decision is a game changer, the numbers can be defined by you based on your actual reality - as you said about the investor's profile
@fazdoll
5 жыл бұрын
I am just mesmerized by those cute little swaying pine trees.
@Parasite743
5 жыл бұрын
mee too
@MattCassCook
5 жыл бұрын
What weed you smoking?
@dontleaveamessage
5 жыл бұрын
This was such an pure comment haha I love it
@ihague4568
5 жыл бұрын
That did it for me too.
@wenlambo
5 жыл бұрын
Did someone say cute swaying pine trees?
@DaneDorsey-j7v
8 ай бұрын
You have made a very valid example about opportunity cost. That's something not many people talk about
@ketelin4285
8 ай бұрын
I have a hunch that only the big fishes reap the benefits of investing . And anyway how can everybody can benefit from doing it ? Who is paying ? Don't tell me , the late comers ...
@Mrhalligan39
7 ай бұрын
A lot of people trying to push you into the stock market forget that you can’t live in your stock market investments, but you CAN put your down payment money into investment accounts until it’s time to buy the house. “Opportunity cost” is bunk.
@astropioneer3296
7 ай бұрын
I’m 52 yrs old. Inherited nearly a million dollars in my 20s. Today have a home with a small mortgage but little else. Didn’t invest or spend wisely. Wish I had seen this video 25 yrs ago.
@fsociety6983
7 ай бұрын
@@Mrhalligan39 Nobody forgets that lol. Learn the difference between "this advice isn't right for me" and "this is bad advice, no one is as smart as me"
@Mrhalligan39
7 ай бұрын
@@fsociety6983 “Don’t buy a house, put your money in the stock market for a higher rate of return” seems like it would fit a fairly limited set of circumstances.
@thebikehippie6562
5 жыл бұрын
In my case. Should I keep renting my apartment or buy a van and live down by the river?
@BenFelixCSI
5 жыл бұрын
Lifestyle choice. If I had no kids I'd take the van.
@thebikehippie6562
5 жыл бұрын
@@BenFelixCSI 😂
@vapeking466
5 жыл бұрын
I seen a couple folks on youtube who lived in thier van while saving for a down payment on a house and they did very well in a year.
@pugtortuga3406
5 жыл бұрын
I lived in my car for 7 years. It’s actually not that bad. Gym, for showers and working out. Laundry mats. Good to go. Lol
@grizzly8859
5 жыл бұрын
The best person to ask would be Matt Foley buds.
@Gaijin101
7 ай бұрын
2024: the 15% rule
@CanWeGetDeep
4 ай бұрын
lol facts
@jays7287
4 жыл бұрын
buy a home, rent it out to someone equivalent to your mortgage payment, then go live in a tent that's how you get ahead
@sgtdevildog7134
4 жыл бұрын
Lmfao !!
@LauraStar127
4 жыл бұрын
Oh my fucking lord that was hilarious 😂😂😂
@maxhouse2409
4 жыл бұрын
The general idea is to buy one house with two units. While you live in one unit, rent out the other. The rent collected will cover your household expenses. This will allow you to build up equity, but you are committed to the area for some years to come.
@thebobman69
4 жыл бұрын
Max House yeh that just isn’t true. Once you take tax, Agent fee’s, maintainer and repairs, and mortgage, there isn’t that much left over. The only time you’ll get a meaningful profit is when the property is paid off in full
@therealjag
4 жыл бұрын
If you want to live in a tent just buy a tent, fuck the house.
@pizza4me298
4 жыл бұрын
Legend says he's still not blinking to this day.
@kevinfritsch2620
3 жыл бұрын
He did once👀
@Cyberpuppy63
3 жыл бұрын
Looks like an artificial generated image, and not a real person. The real person might be talking, but a fake image is super-imposed with lip sync lip movement and realistic muscle gestures. What graphical mumbo jumbo!
@marysutton434
3 жыл бұрын
Pizza 4me lol
@przemeklesniak4056
4 жыл бұрын
This guy is like Johnny Sins of finances
@jteds711
4 жыл бұрын
Przemek Leśniak Lmaoooo
@slutmonke
4 жыл бұрын
This guy is the Rener Gracie of finance.
@adityarao7703
4 жыл бұрын
I feel so dumb 😵
@4everinpanama
4 жыл бұрын
Lmao this is a serious video and this comment was the first one I see smh.
@mrtony1985
4 жыл бұрын
This wins
@Frutoses
2 жыл бұрын
You didn't consider being homeless and investing all of the money in stocks.
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