Get a FREE customized plan for your money. It only takes 3 minutes! http://bit.ly/2YTMuQM Visit the Dave Ramsey store today for resources to help you take …
You might also like
Leave a Reply
Want to join the discussion?Feel free to contribute!
Leave a Reply
What if you’re in your early to mid 20’s and want to move out? You rent first?
Quack Quack
Dave, wealth inequality is hardly ever judged by just home ownership. I love your advice on life and financial freedom, but your political side that slips in every now and then lessens your stature a bit. Politics is corruption by its very nature, you're above it.
Dave i love ya but wait till you see how military town work… it’s a different world I swear.
Repairs, utilities, taxes – almost always these will close the gap between rent and mortgage payments.
You are wrong. You are paying to put roofs on that house. You are paying to fix heating and air conditioning. You are paying for taxes. You are paying for increases in insurance. You are paying for broken hot water heaters. Why do you think rent costs more then a house payment with interest??
Nothing is free. Stop lying to people.
Long term, rent is more expensive than ownership. That's why the rental business is profitable.
Not to mention you're only responsible for the length of the lease. You can even buy out in some cases. A mortgage? 15-30 years unless you sell it in a reasonable time.
are extended car warranty good to buy ours is coming up soon I watch your show & used it to get death pay off
Dave, can you be my father?
I bought a foreclosure for 10,000, I’m mortgage free, can’t believe people are paying hundreds of thousands of dollars with fees for 15 and 30 years 🤔…too many foreclosures (from people like that) selling dirt cheap.
notice the defensive body language when he starts saying overpriced rental market? 3:52
When does it make sense to buy a second home/
Escrow shortages 😡
Home owners have repairs, property taxes, home appliances repairs, mowing lawns, insurance, lots more stress owning a house… plus a home ties you down to one place for 30 years… renting is just stress free… plus with home ownership if you ever get sued they will take your home anyway… no one really owns their home anyway… don't believe me just fall short on your property taxes and see what happens..
Buy don’t rent. And do it ASAP
Prices stabilise. Mmmm. Let’s see… 3 of my properties are as follows….. 1) for past 11 years. mortgage £175 aprox. rental income £500-£600……2) for past 5 years. Mortgage £88 rent income £550. 3) again for past 5 years. Mortgage £262 rent income £600….. sorry would have to disagree with your statements.
My house is $370 a month with tax and insurance the mortgage itself is $260 you can not get a house like mine for what I pay sorry you are wrong my house would rent $600 plus easy. My Interest is fixed they cannot change it 3.75 %
I just got out of college and can only afford 900$ a month in rent or way lower for mortgage. I plan on leaving out of the state after 5 years. What should I do
Keeping up the house the maintenance can cost u a fortune
A house really isn't an "investment" It's more like a savings account unless you pay it off early.
Even if you get a great deal on a house, by the time you pay interest, 30 years later you'll likely lose money overall when you sell it.
It makes me angry when people say…."I bought it for 110K and sold it for 180K 20-30 years later, I made 70K"
No..no you didn't. With interest, that house cost you 200K, you lost atleast 20K.
Add in taking care of it, and the money/time you put into it and it'll be even worse.
A house isn't really an investment. It's a bank account where the bank pays you very little to park your money there.
I’m not an expert by any means, so if it’s not like this, please tell me. The problem with rent is that as wages rise, rent will always rise along with it. Whereas if you buy a house, other than a few non factors such as property tax, insurance, etc your mortgage payment could virtually stay around the same. Perfect example, nine years ago I rented a 2 bedroom 1.5 bath townhouse in a good neighborhood with a finished basement and paid 695.00 a month for it. That exact same townhouse rents for over 1200 a month. 9 years ago. I’m not talking 20-30 years ago, I’m talking less than a decade it almost went up by double. You’re in a 15 year fixed rate mortgage, wages rise…cost of living rises, the mortgage company’s not gonna call you after 9 years and say, “hey! We are gonna double your monthly payment now and tack on another 60k onto your loan.” The scary part is once a year you’re at the mercy of your landlord to decide if they feel rent should be increased exponentially. Oh also that doesn’t include the time period when it’s paid off completely and only thing you have to pay on it is your taxes and insurance.
Renting when you can afford housing is like ripping up your money. Especially if you already have a rainy day fund. Use Ramseys example: Rent is 1500 and that mortgage is 800. After utilities, you could put the remaining balance to your rainy day fund for when something inevitably goes out at your house. By renting when you are fully capable of owning, you are throwing money at something you will never get a return on.
This is nonsense. As for me…
1)I got a CDL n a job making 75g after taxes
2)I lived in the truck n saved 50g a year
3)Two years later bought a nice home 45 mins outside the city where it's a lot cheaper for 60g.
4) Furnished it n bought a new car and an old truck, got a local job and only pay taxes on it. The end.
Apartments near me are $750ish a month for a 1 bedroom 1 bath and I can get a house for 100k and pay around that. I'd rather buy rather than waste money on rent.
Dave is kind of biased. These investors want to soak all the properties and have everybody renting.
But what if you are in construction and can fix things that break? Home ownership would be better then at the short term as well. Right?
What you have to look at is when you retire,if you rent that is a chunk out of your pension so you will still have to work,
If you own your home then you are better off,you keep your full pension,
Rent keeps going up and up and up in this area. Had to move to the trailer park just to save more cash because this is getting insane. Over half of my pay was to rent/utilities every month. Thankfully I have been following Dave's advice for years and the car and truck are both paid for and the credit cards have been unused so long some of them are just being deactivated so I am not in a bind just not happy renting in this area. Very seriously looking at buying as I can get a two bedroom for less then the rent on a mobile home and the 15 year rate is within $100. $37,000 saved up not counting the 401k or retirement, car should not need replacing for another decade (2016 Camry) Not exactly sure what Dave considers ready but I think it is about time.
I can't listen to this fool. The audacity to tell you to rent and pay $1500 instead of buying and paying $800 a month and you own the place. The only reason to throw away money on rent is because you can't buy or afford to buy in an area. But if you can afford $1500 on rent, which never goes down and you can buy for $800 a month you would have to be brain dead not to do it. This guy is an out of touch fool.
Not true in San Francisco.
amen !
we get 25% on top of payment easy here. I am tempted to cancel my 401K because of that return.
1:10 does a good Cleveland brown.
In the SF bay rents are much lower than cost of ownership. Cash buyers can afford to rent below what it would cost to buy with a mortgage.
Buying is good, but house prices are so high now that you'll need to work for 30 years to afford even a starter house unless you move to a cheap area that doesn't have any jobs anyway. Most renters past their mid 20s don't want to rent, but prices are prohibitively high
100 percent agree. Homeownership isn’t cheap
Why do people lock themselves in a 15 year loan instead of getting a 30 year loan and paying double each month? At least if you get the 30 year loan you can pull back on payment if needed?
This man is a crook. Genuinely. His success is your failure
I want to rent until my kids are in college. I can’t afford one so renting is better for my family.
Housing should never have been allowed on the stockmarket. It's been a nightmare. Wages have more kept up with housing inflation for all except the top earners.
I’m not to proud to live in a single wide Mobil home. It’s on 5 acres and PAID FOR. I’ve heard all the trailer jokes but I don’t care, it’s paid for and sits in a beautiful piece of property next to a creek. You can buy a brand new trailer for 30k and pay for it. As I said I’m not to proud. Y’all can keep those big mortgages. I got 44k in my Mobil home and 5 acres. You can’t buy a new truck for that!
dave is wrong. i see it right now in my city. other factors are at work like the inability to qualify for loans and are forced to rent. i have one for sale right now for 300k. payments would be 1300. it rents for 1800.
If you're not happy in smaller place (apt) a bigger one will never make you happier.
Invest in Tombstones is a good business people are always dying to see you.
Dave, in theory your advice makes sense but in reality I have never seen rents go down in major city’s. I live in Canada, Toronto Ontario to be exact and as long as people keep immigrating here (and they will) the rents and the cost of a house will never go down, it’s been this way for quite some time now. I know major metropolis’s in the states have the same issue.
Unfortunately, some of us live in areas where government manipulates supply and demand though rent controls, land use planning and other restrictive measures. It results in a shortage of rental homes in heavy increases in real estate prices. Those of us who bought a home many years ago are the benefactors of this, but those who want to rent simply can't afford it. (They can't afford buying, either.) Supply and demand works better in situations where there aren't the lilberal leaning governments like there are here in Oregon….
Rent is related to the cost of property but they are not directly connected. There are times when it is cheaper to rent, and times when it is cheaper to buy. As Dave says, these extremes tend to correct but they can persist for years.
My house payment is 430 (locked) a month and a typical rent is 500-600 or more in my area.
15 year fixed rate at 1/4 take home may be possible in Texas. But if you try to hold that mantra anywhere with a housing shortage, you will never own.