Right now, the first 500 people to use my link will get a one month free trial of Skillshare" https://skl.sh/techlead11232
@dontquitpersevere323 Says:
Owning is a money pit and time consuming up keeping the property
@ThisMichaelBrown Says:
Wow, imputed rent....I need to study that. Different topic: If you can afford to pay for a house in cash, why "save the 8%" when you can sometimes make more than that in the stock market? And if we are really in a bubble, that is some big baked in losses to buy a house. I still vote for rent....add to that, I do not enjoy home improvement activities (ha) and I like being free to move from an area.
@Fleshnbloodrobot Says:
You kill me 😂
@dangunsuh5594 Says:
Guru 🎉🎉
@snake_eater1963 Says:
thanks kojima
@sewnsew6770 Says:
It depends on neighborhood
I live in an expensive neighborhood and only live here so my kids can go to an excellent school
But buying here is 53 percent more expensive than renting
And that does not even take into account the cost of maintenance
Replacing roof every 15 years for example
@yoda6051 Says:
Does your ex-wife regret divorcing you yet? Could have been w/ a Bitcoin Millionaire.
@slacktronic6587 Says:
The brief comment on mortgages at 11:26 - "If you are taking out a mortgage you probably shouldn't be buying a house." LOL.
Daddy, Mommy, can I have $500,000?
@melgonz.6962 Says:
The only reason I even think about wanting a house is so my dog can have a backyard to chase squirrels. Otherwise, it doesn't seem worth the hassle and upkeep.
@user-nl5le9id8v Says:
Assuming you are buying a property with a mortgage as a primary residence. Definitely not tax free. You are paying property taxes to the county you live in. In my opinion that is still renting. You are renting no matter what. Either from the government in property taxes or from a landlord who takes care of the property for you. As well most people are going to be paying interest from a mortgage on the property. In most cases on a 30 year mortgage you are going to pay more than double the purchase price of the property. This is assuming you never refinance and most people refinance every 3 to 4 years. Either to take equity out or to got back to a 30 year to lower their mortgage payment which inevitably costs them even more interest because mortgages are front loaded with the interest costing you the most the first 15 years. On top of this you are responsible for all the costs of the home which an estimate is 1% per year of the homes value. Usually around $500 per month in home maintenance and repairs. Then by the time you actually pay the house off in 30 to 40 years (because of refinancing) IF you stay in it that long (most people move every 7 years) then you probably have to do a reverse mortgage just to live because social security is crap and so is 401k. So congratulations you were never a home "owner" just a glorified renter. The only way home ownership makes since is if you can buy it as a long term investment (meaning you are renting it out) and the property actually cashflows to cover the expenses. Or if you pay cash for a house you live in and plan to stay long term.
@jupitereye4322 Says:
Never rent again, period. I've rented for few years, wasted money completely. Since I bought my first apartment, then sold and bought a house, then sold again and bought a house with rental, I have effectively quadrupled my money, literally. Not only that, I've now cut my cost as my rental unit is paying for a good chunk of the mortgage. I think your calculation is unidimensional, it doesn't take into account growth of value, not to mention lines of credit associated with the property which can sometimes be crucial for life opportunities or unfortunate events. Right now if you calculate for example cost of mortgage for a 1M$ house, it would be high, but the cost of the house will rise as interest rates come down by 2-3%, so temporarily you are losing money but in 6-7 years you'll gain that value back, or make even more. Renting should be really a short term idea. I know people in my industry that never owned a thing, always renting, and now they are turning 50, their investments haven't made much money, and even if they did it will all be gone for another rental when they hit 65 and are retired. What this is, to my eye, is pure slavery. Own nothing, pay for everything to those who are slowly accumulating money. I think if someone can't afford to buy a house, then rent, ok, but why not buy a super small condo and rent it out? Have someone pay that off, and even if you supplement payments you are still saving on a long term by having that property that is growing in value.
@pavlinpetkov8984 Says:
Renting a home for more than a couple of months is a total waste of money. I don't understand people who have been paying rent for 15 years or so. You must be mental to lose that amount of money. Buying vs Renting is an absurd comparison for dumb people. It is funny how people think that the market will crash and they will buy a home for free at some point. During that time, they are paying rent and they are waiting for the crash wasting their money. Funny americans...
@holdencawffle626 Says:
Grant cardone hates this video
@tomaszsadowski1916 Says:
when techlead is starting to invest in something, it's a good indicator to back down from this investment.
@ya-tekao8477 Says:
a multi-millionaire and programmer, has never owned real estate but is considering buying a house.
techlead discusses hidden tax benefits, particularly imputed rent, which allows homeowners to avoid taxes on the rent they would pay themselves.
Challenges in the current housing market are highlighted, including rising interest rates, potential market bubbles, and commercial real estate troubles.
techlead emphasizes the importance of calculating the value of a home based on factors like interest rates, property taxes, and homeowner association (HOA) fees.
techlead mentions the shift in modern preferences for homes, with less focus on customization and more on practical, cost-effective choices.
The potential benefits of multiple home ownership, such as vacation properties, are questioned in the current context of hotel infrastructure and regulations.
techlead suggests that buying a house could make sense if paid in cash, the price aligns with financial calculations, and the property serves as a primary residence.
Various tax deductions related to home ownership, including capital gains exclusion, mortgage interest deduction, and property tax deduction, are discussed.
The overall sentiment is that the current housing market is challenging, but under specific circumstances, buying a house could still be a viable option.
@danielwalley6554 Says:
I use my investment property as a piggy bank. The goal is to pay it off as quickly as possible, but with a redraw in case you need the funds for a rainy day. Lowers your interest paid per month, which makes it a profitable venture (though you do lose some of that gain from income tax). There are two goals: have an asset that produces passive income (once it's paid off), and convert currency into an asset (so that it scales with inflation).
The property is a simple 1 bedroom apartment, the kind I'd live in myself if I was single. The tenant pays $1200/month, mortgage payments are around $1300/month, with $550 being interest, the other $750 is paying the loan off (property is about 60% paid off). Yearly expenses from body corporate and rates is about $5000, maybe add another $1000 for repairs. So the total yearly loss is about $11600 (overheads + interest), and the total rental income is about $14400. So the property nets me $2800/year, while it's still being paid off, *and* its value will at minimum keep up with inflation over time given it's in a decent location. Finally, my goal is to pay it down to $80k remaining on the loan (property cost 250k), as after that it will only take 5 years for it to finish paying itself off just from monthly repayments (the time to finish paying off the loan speeds up the more that is already paid off, as the interest is charged in an inverse curve - higher at the beginning, lower at the end).
Living in it would also work well, as my monthly rent would essentially only be the interest - $550 - as the rest of the payment goes to paying it off, so that's value I keep because I own the property. Compare that to being the tenant of someone else's property of the same kind - $1200 down the drain per month, with nothing to show it for at the end. And the fact that it's ultimately profitable for me to own such a property and rent it to someone else proves that ownership is the better financial choice, at least here in Australia (and at least for an apartment - houses tend to yield less rent). And keep in mind - this is as of now, after all of the interest rate rises. When the rates were lower a couple of years ago the property was twice as profitable.
@indexplus Says:
When you rent to somebody, you can claim so many tax deductions that you have no profit on paper when you actually have profit. When you sent to yourself, you get no taxbreak
@UnemployableFakeGuru Says:
In the Netherlands you can deduct a mortgage from income, reduce income tax that way. Assuming you pay income tax to begin with.
@Terranova339 Says:
What about the factor that a house needs upkeeping and also deteriorates over time? Many people who buy houses consider this factor hugely
@delerak Says:
I don't know how he sits that close to the monitor.
@kevinn6482 Says:
King on internet , period
@nat.serrano Says:
imputed rent is basically: if buying is cheaper than rent then buy
@BrokeAgain Says:
Room for rents?
@chrislastnam6822 Says:
Many of us think of houses as works of art and we want beautiful ones. This guy wouldn't mind living in jail .
He overlooks the issue of whether houses in your city go up astronomically , very little or not a all.
@Mark-sy2bx Says:
Just not being harassed by a land lord is worth buying.
@Lion_McLionhead Says:
Forget owning a house & just retire for half the price.
@DarrenSemotiuk Says:
Landlords hate the TechLead for revealing this one trick...
@samanthaxxxtangxxx3994 Says:
i am christian. the bible is true god is real.
one god. earth is flat. blessing to all. 😀❤️👍
@CursedOnii Says:
Thanks bro!!
@grafdp Says:
Hm. I don't really get the calculations. Why should I pay rent, so someone else can get richer? Also it's a completely different feeling to live in your own house where you can do whatever you want, instead of living in a house where you know it doesn't belong to you. Mentally it just doesn't feel right.
@sadatmoya1016 Says:
here in Uganda as soon as you own a house, you don't need to pay tax for it for a life time
@StfuSiriusly Says:
people still watch this guy??
@Riggsnic_co Says:
In my opinion, a housing market crash is imminent due to the high number of individuals who purchased homes above the asking price despite the low interest rates. These buyers find themselves in precarious situations as housing prices decline, leaving them without any equity. If they become unable to afford their homes, foreclosure becomes a likely outcome. Even attempting to sell would not yield any profits. This scenario is expected to impact a significant number of people, particularly in light of the anticipated surge in layoffs and the rapid increase in the cost of living.
@laserdrip Says:
"But bro you're just throwing your money away if you rent!"
@50tigres79 Says:
when u own a home , you don't need to fix things up every day.
@Elsolocup Says:
I, dont, wanna, live in a van🎶🎵🎵
@arcan762 Says:
only a tech lead would open a terminal and use python to do basic math vs just using the default calculator app 😅
@siroliver8367 Says:
😊 😊
@jamesbell8148 Says:
Speaking as a home developer myself find a home in a medium to well area so you wont hate your neighbours and area preferred detached with a decent amount of land on the house if possible. Lastly most of tge working appliances are good elec plumbing if its run down its ok because you woukd want to redecorate anyway
@joequinal Says:
Disagree with your take on what Realtors do. It’s obvious you don’t understand that they could be showing the house many many times to try to sell it and put up with tough lenders, sellers (who think they just have to take/post pictures, etc) as well as people who back out of deals and so on. You should watch Skill Share on how to be a realtor so you can speak intelligently about what a realtor really does.
@huckfin1598 Says:
On the flip side if it’s a rental you can deduct all expenses and improvements. When you live in the house none of your expenditure is deducted
@ghensao4027 Says:
putting all cash towards buying a house is just plain dumb these days. RE returns are way too low compared to stonks. Leverage is the only thing that makes it investable.
@mike888_ca2 Says:
Nice analysis for buying homes with cash. I think it is more complicated with a mortgage, since you need to factor in the likely benefit of currency debasement over the duration of the loan. It is possible the rate of currency debasement will exceed the interest rate of your mortgage.
@sebastienvttiste7233 Says:
Bought house 10 years ago. Value is 2.5x more now, and rent is also 2.5x more expensive. Inflation is big criteria to take into account. What you can afford today might not be affordable tomorrow
@ccoe3237 Says:
You're right. In this dog eat dog world everyone is out for themselves, each person or collective of people have an agenda. In the case of the Wall Street Journal, who knows what could have happened behind the scenes. There could be political pressure or there could be a lot of money exchanging hands for the article and some investors had a lot of money in letting or were looking to let, and they needed a bit of a boost. See, people are suckers for "cherry picked" stats and they are lazy. They don't look at the whole picture. They don't do their own research. That is the key - to do research beyond what media or others say. Yes there may be articles which contradict and say from both sides of the argument. At this point people should realize - it's up to them. It's up to the individual to make their own choices - and one of them is "Do you want to just believe what you are told or do you want to do the intelligent thing and question everything.
@mmmm-wm8ci Says:
Depends whether u buy independent house/villa or flat in some society
@ericmed Says:
Or be a millionaire living in a 🚐
@Death_Metal_Head Says:
For probably the next decade at least the average rate will likely hover around ~8.5-10% (based on historical examples). People will wish they'd bought sooner.
@mavram Says:
next you should consider getting re-married in order to get better tax savings
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