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Speaker 1: Welcome to How the Money. I'm Joel and I'm Matt.

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Speaker 1: Today we're talking about renting versus buying a home. So

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Speaker 1: today on the show, we're gonna challenge the assumptions that

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Speaker 1: buying a home is a good quote unquote investment. We're

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Speaker 1: going to talk about things that you need to consider

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Speaker 1: before buying a home, the pros of renting, the pros

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Speaker 1: of buying, and give our final thoughts on what's better

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Speaker 1: renting or buying. Yeah, Joel, I think this will be

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Speaker 1: a good conversation first of all, because I have good,

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Speaker 1: like fond memories of renting, so just like the emotions

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Speaker 1: that I have towards it are negative. Yeah, I don't

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Speaker 1: have the most fond memories of renting. I think it

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Speaker 1: was kind of fun when you're younger, living with you know,

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Speaker 1: like three dudes in a two bedroom of oar bet

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Speaker 1: or something like that. Yeah, not my favorite times. How

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Speaker 1: much for owning a home right now, and just kind

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Speaker 1: of the stage of life. I'man I think it's way

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Speaker 1: more fun to be in your thirties than it is

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Speaker 1: to be in your twenties in a lot of ways.

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Speaker 1: That being said, I think there are so many good

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Speaker 1: reasons to be a renter, and we'll get into those

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Speaker 1: in just a minute. I wanted to let you know,

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Speaker 1: speaking of running, we have rental homes and last night

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Speaker 1: I had a fridge crap out at one of my

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Speaker 1: rental homes and so I had to replace it. So

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Speaker 1: we're trying to get me to it. I know. I

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Speaker 1: was sparking up the tree to see if you wanted

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Speaker 1: to help. Got another friend, Colin, to help me move

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Speaker 1: a fridge. But he's got muscles too, so that's good. Yeah,

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Speaker 1: he's stronger than you are, so that's that's why I

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Speaker 1: reached out to him. I got the best deal I

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Speaker 1: looked on Craigslist, which is we talked about, you know,

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Speaker 1: where to buy certain things. It's great for appliances. Craigslist

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Speaker 1: is an awesome place to buy appliances. Uh you know,

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Speaker 1: it's much harder to find stuff on Facebook or whatever,

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Speaker 1: but Craigslist is an awesome place for that. I don't

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Speaker 1: want to buy your fridge on eBay, have a ship

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Speaker 1: to you. The shipping would have cost more than the

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Speaker 1: fridge because I paid seventy five dollars that is for

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Speaker 1: a six year old fridge. YEP, So I think this

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Speaker 1: thing will be nice. I loaded it in the back

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Speaker 1: of the mans to five strap strip it down, I

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Speaker 1: mean not all the way, but well enough. Yeah, and

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Speaker 1: I bought it from another dude named Joel. Oh really

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Speaker 1: around there. So I met a new neighbor. I got

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Speaker 1: a seventy five dollar fridge in the neighborhood close by

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Speaker 1: r Yeah. So he was literally like three or four

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Speaker 1: blocks away from me. Oh no way. Yeah, that's awesome.

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Speaker 1: So it's kind of fun to meet a new neighbor,

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Speaker 1: get a seventy five dollar fridge, hung out with Colin,

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Speaker 1: you know. Yeah, so it was good times. I live

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Speaker 1: being thrifty man, Yeah I did. I did too. That

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Speaker 1: being said, the last fridge that I bought, I didn't

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Speaker 1: have time to to scour Craigslist, and so I just

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Speaker 1: went to Low's, our local hardware store, and just kind

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Speaker 1: of got a cheaper model there. It was I think

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Speaker 1: it's everybody's local hardware store. Yeah. Uh, but this is

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Speaker 1: before we had a larger vehicle, and when all we

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Speaker 1: had was our Vida Volkswagen. But we had the bars

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Speaker 1: on top, like uh, what is it totally rack? You know,

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Speaker 1: like the bars that go across the top make you

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Speaker 1: look like you're like an outdoorsman, but in our case,

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Speaker 1: that's where I put my fridge, so literally yourself. Yeah,

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Speaker 1: the the guy, the guy at low it's helping me

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Speaker 1: to get it up there, but he's just like, wait,

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Speaker 1: we're putting this whear because it wouldn't fit inside the

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Speaker 1: back of the wagon. And yeah, man, through a fridge

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Speaker 1: up on top of our volks wagon, strapped it down

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Speaker 1: and drove it back to the to Uh. It was

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Speaker 1: actually the house that we're moving out of that we

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Speaker 1: were converting into a rental because the fridge that was

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Speaker 1: there was in poor, poor shape. So and by the way,

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Speaker 1: if you want to know why that's the best method

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Speaker 1: of starting owning rental homes, moving out of it and

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Speaker 1: running that out, go back and listen to our Investment

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Speaker 1: Property Basics episode and you'll find out why. Oh and man,

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Speaker 1: I wanted to tell you one more thing, Emily and

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Speaker 1: I did the budget right before biking over here tonight

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Speaker 1: to do this episode. What do you mean when you

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Speaker 1: say when you say you did you did the budget?

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Speaker 1: Are you recapping the month essentially? And how did things go? Yeah?

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Speaker 1: Where did we overspend? Underspand how can we do better?

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Speaker 1: Where did the actual inside of those specific categories where

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Speaker 1: did the money go? And that helps us know better,

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Speaker 1: you know, was it a one time thing? I guess.

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Speaker 1: I was just check. I was wondering if you were

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Speaker 1: setting a new budget for this coming month, because for us,

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Speaker 1: it's basically the same budget from last month, like we

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Speaker 1: al really changed things. No, we're just checking in. Yeah,

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Speaker 1: where we're at the recap. But I want to say,

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Speaker 1: it looks like I'm retiring after this episode because I'm

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Speaker 1: that filthy rich. Congratulations, yes, thank you, and so podcast listeners,

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Speaker 1: I'm sorry we won't be back next week. No, I guest, digest,

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Speaker 1: I stick around. Let's stick around. Please, even if you

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Speaker 1: were retiring, this is I mean, let's be honest, this

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Speaker 1: is what you'd want to be doing. So this is

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Speaker 1: having a good time because we get to drink beer.

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Speaker 1: Because we get to drink beer. Yeah, and so today's beer, Matt,

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Speaker 1: you picked this up for us. It's from a local

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Speaker 1: brewery that we're huge fans of, huge fans of Wrecking

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Speaker 1: Bar Brewpub. Honestly, Matt, if I had to say a

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Speaker 1: gun to my head, what's the best brewery in Georgia

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Speaker 1: right now? Wrecking Bar Brewpub? I think so. I think so, man,

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Speaker 1: I was, Yeah, that's they're I mean, they're rushing it

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Speaker 1: right now them, I'll be honest with you, and we

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Speaker 1: might have one of these beers pretty seen to you.

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Speaker 1: But Monday Night, yeah, they have been stepping up their

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Speaker 1: game and making some incredible stuff too. Those are literally

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Speaker 1: that the two places I would tell someone if they're

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Speaker 1: coming into Atlanta and they wanted to find out where

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Speaker 1: to get good beers, Wrecking Bar and Monday Night, go

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Speaker 1: to those two places and you will have awesome beers

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Speaker 1: and awesome experience. Yeah, Wrecking Bar has it's a restaurant

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Speaker 1: as well, and they've got a farm, uh not that

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Speaker 1: far from Atlanta and do Their food is so good too.

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Speaker 1: That's why Kate and I both love going there. We

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Speaker 1: can get just amazing food and at the same time

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Speaker 1: they're making some awesome, awesome beers. They're doing such a

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Speaker 1: good job with all the beers too. It's not like

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Speaker 1: they're only specializing in amazing I pa is like, we're

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Speaker 1: gonna have tonight. That Russian Imperial style that they have

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Speaker 1: that they put out every month. It's like the Mexican version.

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Speaker 1: So it's got the peppers in it. I guess that's

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Speaker 1: mind blowing. And then they've got all these different farm arritles,

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Speaker 1: their different stays ons and and obviously all a lot

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Speaker 1: of their I pas are fantastic too. So yeah, that

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Speaker 1: stout I think is probably I think that's like one

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Speaker 1: of the best deprobably the best out in Georgia. It's

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Speaker 1: one of the best outs I've ever had. Yeah, and

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Speaker 1: it's phenomenal every single yeah. So yeah, So if you're

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Speaker 1: coming to Atlanta, and we need to write a post

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Speaker 1: on this at some point on the site, just introducing

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Speaker 1: people to our town and where do you like, like

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Speaker 1: a local Georgia or a beer guide? Yep, alright, righte

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Speaker 1: it up, Joe done? Can you do that? All right?

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Speaker 1: So let's crack this one cause I'm thirsty. Nice it's

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Speaker 1: got that deeper crack. These are sixty ounce cans for

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Speaker 1: the trained listener out there. You may have picked up

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Speaker 1: on that, but not as deep as the crowler that

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Speaker 1: we had. That that's like opening up. It's like a

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Speaker 1: shotgun drum of oil. So we didn't even introduce this style.

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Speaker 1: But this is the Juice Bar Pale Ale Yeah, and

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Speaker 1: the and Wrecking Bar has this essentially this juice series

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Speaker 1: where pretty much every time you go the B series

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Speaker 1: Juice Bar series, and they essentially every time you go

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Speaker 1: they have a pale ale or an I p A

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Speaker 1: or double I p A on tap that's part of

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Speaker 1: this series. And really they're just incredibly juicy, delicious beers.

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Speaker 1: And so this one wasn't cheap, but I mean their

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Speaker 1: beers are good. This this one was worth it. I think, Matt,

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Speaker 1: you paid fifteen bucks for a four pack, right, yeah,

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Speaker 1: fifteen for a four pack. And honestly, though, to be

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Speaker 1: able to pick up a beer that's that fresh, canned

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Speaker 1: days before we picked it up, it is hard to beat.

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Speaker 1: So Jill, that poured a nice golden It's not perfectly filtered.

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Speaker 1: It's not meant to be super cloudy, I don't think,

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Speaker 1: And I know I was supposed to sniff it first,

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Speaker 1: but I kind of went straight in for the sip.

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Speaker 1: I was just that thirsty. And this is delicious. At

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Speaker 1: five and a half percent, it's um and being a

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Speaker 1: pale ale, it's a little light, but man, it's like

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Speaker 1: all hops. Like there's no malt backbone almost it is

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Speaker 1: all hops, and I'm all about that. Yeah, they've got

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Speaker 1: to set up to be a session nail. And for

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Speaker 1: those who may have heard that term before, but maybe

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Speaker 1: I don't know, you don't know exactly what that means.

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Speaker 1: It's just a lighter beer um that you can maybe

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Speaker 1: have more than one in a sitting, which we're not

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Speaker 1: going to do tonight. But yeah, that's the idea behind it.

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Speaker 1: And I'm getting more and more into these lower A

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Speaker 1: BV beers so that I can have a couple in

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Speaker 1: an in an evening for once in a while. And

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Speaker 1: it's Yeah, it's really nice because usually if you want

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Speaker 1: to have three beers in a night, you're drinking Budweiser

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Speaker 1: if you don't want to be hung over the next day.

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Speaker 1: But there's so many good beers weighing in it, you know,

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Speaker 1: five four and five percent now that are full of flavor,

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Speaker 1: so you can actually have a couple. Yeah, and this

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Speaker 1: is full of flavor, man, like you said, just hop forward.

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Speaker 1: There aren't a ton of beers that I've had that

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Speaker 1: have this much like hot presence but without sort of

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Speaker 1: that thicker body. It's different. I guess I'm just not

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Speaker 1: used to that, but I yeah, I like it. This

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Speaker 1: juice bar pale Ale from Wrecking Bar is delicious. It's

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Speaker 1: like a cumulus cloud on my tongue. I'll take it. Yeah,

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Speaker 1: So this is a beer that I mean, they can

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Speaker 1: they're on site, but they don't distribute or anything like that.

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Speaker 1: So this is an example of one of those local

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Speaker 1: breweries that are kind of filling the void of local

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Speaker 1: beer for folks to kind of come by and get.

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Speaker 1: And even when they do release it's a very small amount,

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Speaker 1: there's usually a line that's built up. They'll announce it

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Speaker 1: day of over the day before. Hey, we're releasing it

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Speaker 1: eight pm tomorrow and I it or noon on a Friday,

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Speaker 1: and it's sold out within an hour. So if you're

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Speaker 1: passing through town and it's great to get a beer

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Speaker 1: on draft there, but you're probably not going to get

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Speaker 1: any cans to go at least at this point. Yeah,

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Speaker 1: but hopefully there's a local brewery that is doing something

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Speaker 1: similar to this near wherever it is that you are.

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Speaker 1: I mean, like we said last in the last episode,

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Speaker 1: that's one of the things we're excited about with the

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Speaker 1: industry as a whole, is just sort of that move

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Speaker 1: back to to more the local local brewery that you

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Speaker 1: that you go and hit up. Yeah, your neighborhood spot.

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Speaker 1: All right, Matt onto the topic at hand, renting versus

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Speaker 1: buying a home, and this is one of those topics

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Speaker 1: that has captured the minds of personal finance experts everywhere.

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Speaker 1: And I think there's something we can add to the debate,

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Speaker 1: and I think there's some really important things that we

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Speaker 1: need to clarify for people on both sides of the

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Speaker 1: aisle when it comes to this topic. And I think

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Speaker 1: the first thing that we really need to talk about

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Speaker 1: we need to challenge the assumption that buying a home

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Speaker 1: is a quote unquote good investment. That's kind of been

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Speaker 1: the long standing traditional thought that buying home, well, yeah,

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Speaker 1: of course you got to do it. It's an American

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Speaker 1: dream and it's a good investment. But I think there

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Speaker 1: there is a large element where people have run with

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Speaker 1: that thought and made really poor choices when it comes

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Speaker 1: to buying a home instead of running edual. I mean,

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Speaker 1: that's my goal right for this specific episode, is that

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Speaker 1: by the end of the conversation that we've caused you

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Speaker 1: guys to think about this sum and that it isn't

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Speaker 1: just sort of like this assumption that it's not an

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Speaker 1: assumption that your home value is only going to continue

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Speaker 1: to increase, you know, like we were just talking about

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Speaker 1: back in uh two thousand seven, Like people, we know

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Speaker 1: that that bought back then, and that was the assumption,

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Speaker 1: and that didn't really pan out too well for a

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Speaker 1: lot of folks. And if you're buying for the wrong

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Speaker 1: reasons in two thousand seven, oh yeah, then there's a

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Speaker 1: good chance that that that purchase led to heartache. But

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Speaker 1: if you made a purchase for the right reasons, you

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Speaker 1: likely could have weathered that storm even though your home

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Speaker 1: dropped in value, you know, unless you suffered something terrible

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Speaker 1: like a job loss and a bad economy or something,

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Speaker 1: or you know, or some other major devastation happened in

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Speaker 1: your life. If you're buying at home under the right pretenses,

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Speaker 1: like we'll discuss here, I think you probably still could

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Speaker 1: have weathered that storm of your home just being worthless essentially.

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Speaker 1: And what you mean by like buying for the right reasons,

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Speaker 1: is you mean buying for reasons other than just purely financial, right, yeah,

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Speaker 1: And I mean I think a lot of people at

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Speaker 1: specifically at that point in time, with the way the

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Speaker 1: real estate was appreciating, they assumed they could buy something

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Speaker 1: one month and sell it the next for a much

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Speaker 1: larger gain, and that is just not and that that's

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Speaker 1: just not typical when it comes to real estate throughout

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Speaker 1: the history of real estate. Essentially, it appreciates roughly at

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Speaker 1: the rate of inflation. So buying a home with the

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Speaker 1: thought that it's going to appreciate rapidly that's just not

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Speaker 1: normally the case. And so if you buy a home

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Speaker 1: with that rationalization behind it, and you're using very little

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Speaker 1: money down, then that, to me would be an example

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Speaker 1: of someone that's not being thoughtful about the purchase of

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Speaker 1: that home. Yeah. Man, honestly, that's just that's what freaks

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Speaker 1: me out right now. Like seeing the way that the

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Speaker 1: markets continuing to I mean, it's been climate for the

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Speaker 1: past seven years or something like that, and and the

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Speaker 1: natural tendency is just to think that it's going to

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Speaker 1: continue to do what it what it's been doing. Like

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Speaker 1: that's just for whatever reason sort of what people think.

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Speaker 1: And I get caught into that sum too, but I

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Speaker 1: think I just get freaked out more like when I

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Speaker 1: see that, it kind of I'm just like, oh man,

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Speaker 1: it can't feed this good forever, you know, like I'm

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Speaker 1: always writing maybe maybe that means I'm more of a pessimist,

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Speaker 1: but I'm like kind of waiting on the other shoe

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Speaker 1: to drop, you know, I'm just like you know that

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Speaker 1: it's not going to be able to continue this, you know,

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Speaker 1: at the at the rate that has been and and

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Speaker 1: when I see folks that are buying and maybe spending

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Speaker 1: more than they can have, you know, afford or like

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Speaker 1: you said, expecting that appreciation and expecting that equity growth,

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Speaker 1: that makes me nervous. I completely agree. And actually, but

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Speaker 1: I think actually it doesn't make you a pessimist. It

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Speaker 1: makes you a realist because the same thing, right, because

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Speaker 1: when you look at for instance, you know what's happening

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Speaker 1: with the stock market right now, we're having a bit

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Speaker 1: of a correction. We'll see if we have even more.

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Speaker 1: It is natural human tendency. Though you're completely right to

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Speaker 1: say it's going up, and it continues to go up up,

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Speaker 1: and any bump in that completely shakes us for the

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Speaker 1: most part. In vice versa, if it's going down, it's

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Speaker 1: only going to continue to go down exactly, which is

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Speaker 1: the exact time that you need to be buying because

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Speaker 1: things are on sale. Yeah, and so it's hard for

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Speaker 1: us to time those things and to know. But ultimately

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Speaker 1: that's why you have to go with some of these

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Speaker 1: time tested reasons and methodology and mathematics ultimately behind buying

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Speaker 1: a home to make sure that you're buying something that

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Speaker 1: you can't afford over time and granted, things happen, right

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Speaker 1: like in two thou seven. Like if you bought in

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Speaker 1: two thousand and seven and then and then you're you're

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Speaker 1: going up towards the recession that hits a No. Eight

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Speaker 1: and you lose your job, that's a different story, right,

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Speaker 1: you can't plan for that all the way. But for

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Speaker 1: the most part, there were a lot of people that

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Speaker 1: got caught with their pants down, you know, their hand

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Speaker 1: in the cookie jar essentially, and that's what we want

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Speaker 1: to avoid. That kind of mentality when it comes to

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Speaker 1: buying a home, paints down and handing the cookie jar

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Speaker 1: at the same time. Who knew, what are you doing?

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Speaker 1: My mom would find me like then they kitchen and

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Speaker 1: I'd be like, I'm just hungry, sleeve lock. But I

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Speaker 1: guess the first thing that we need to dispel the

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Speaker 1: common myth is that renting is throwing away money, and

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Speaker 1: so yeah, sort of going back to the same assumption

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Speaker 1: where buying is a smart move as a smart investment.

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Speaker 1: Just as prevalent is the notion that renting is throwing

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Speaker 1: all your money, and that's just not true. Renting can

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Speaker 1: be an incredibly smart decision and a wise financial move

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Speaker 1: and just a great move for a lot of different reasons.

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Speaker 1: But yeah, that's just always the sort of mentality people

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Speaker 1: are like, just every month, just throwing away money. It's like, no,

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Speaker 1: like there's so much that gives you. And we're gonna

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Speaker 1: get into that later, uh in this episode, but just

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Speaker 1: kind of write that off in your mind. That is

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Speaker 1: not the case. Yeah, you're still getting something for your money, right,

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Speaker 1: a place to live and and and flexibility. So we'll

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Speaker 1: talk about the pros and running in a little bit,

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Speaker 1: but but just no dispel the myth running is not

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Speaker 1: throwing away money. So, Matt, before we get into the

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Speaker 1: specifics of running versus buying pros and cons, let's talk

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Speaker 1: about some of these overarching rules that we need to

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Speaker 1: follow whether we're renters or buyers. And first, you just

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Speaker 1: don't want to overspend on housing no matter what the

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Speaker 1: whether you're renting or buying, you want to make sure

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Speaker 1: that you're living by at minimum that rule yeah, which

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Speaker 1: is you don't want your housing expenses. So like you said,

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Speaker 1: renting or buying, you know, so whether it be like

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Speaker 1: a rent check every month or your mortgage, you don't

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Speaker 1: want that to be more than of whatever your take

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Speaker 1: home pay is and not so not your salary, but yeah,

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Speaker 1: this is your take home pay. So this is after

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Speaker 1: taxes have been taken out by employer um any amounts

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Speaker 1: that are that's going towards retirement savings like your four

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Speaker 1: own k. This is what shows up in your checking account, right,

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Speaker 1: so every month when you get paid that amount, that

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Speaker 1: is the rule. That's what you want to divide that

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Speaker 1: out by. And your rent or your mortgage payment does

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Speaker 1: not need to be any larger than that. Yeah, And

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Speaker 1: it's easy, I think, depending on where you live and

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Speaker 1: and who you're who you're hanging out with, to say, well,

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Speaker 1: I need to live in this kind of house or

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Speaker 1: I need to live in this neighborhood, and those kind

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Speaker 1: of choices can balloon your monthly rent or mortgage payment

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Speaker 1: really quickly. And so don't be fooled by the way

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Speaker 1: people around you are living. If you want to ultimately

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Speaker 1: have financial independence one day, if you want to live

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Speaker 1: a rich life where you're not house poor. You need

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Speaker 1: to think not about what everyone else around you is doing,

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Speaker 1: but what you need to do to put your finances

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Speaker 1: in right order. And the biggest piece to this puzzle

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Speaker 1: is how much of your income every month do you

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Speaker 1: spend on housing? That is the biggest piece to the puzzle.

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Speaker 1: And if you can make changes there, if you can

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Speaker 1: move someplace cheaper, whether it's renting or owning, that's gonna

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Speaker 1: have a huge impact on how much you're able to

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Speaker 1: save and invest for the long term. Yeah, Jill, I

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Speaker 1: mean what we'd recommend is to think about we talked

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Speaker 1: about in a recent episode like the your big why

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Speaker 1: behind money. If housing is a priority for you, than sure,

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Speaker 1: maybe that's something that you can might spend up too

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Speaker 1: closer to But for most folks, I think you might

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Speaker 1: even find that that percentage to even a lot lower,

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Speaker 1: you know, like closer to fifteen or maybe I agree.

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Speaker 1: The lower you can get it, the more you can

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Speaker 1: stock away for the future, the more quickly you can

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Speaker 1: actually be financially independent. That housing costs is the biggest

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Speaker 1: line on them that's going to help get you there. Yeah,

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Speaker 1: by far. So another overarching point things that you need

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Speaker 1: to consider before buying home. And I think these are

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Speaker 1: hard and fast rules that you need to have thought

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Speaker 1: about this before you actually go through the process of

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Speaker 1: shopping for a home, getting financing, and then making offers.

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Speaker 1: You need to consider are you going to be in

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Speaker 1: the home for at least five years, and if you're

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Speaker 1: shopping for a condo even longer than that, probably seven

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Speaker 1: to ten years. You want to explain to folks why

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Speaker 1: this is the case. Sure, So it comes down to

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Speaker 1: a few things. Just like if you're investing in stocks,

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Speaker 1: you're not going to invest heavily today in a mutual

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Speaker 1: fund knowing that you need the money next year, because

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Speaker 1: there's a lot that can happen in a year. Same

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Speaker 1: thing with a home not quite as volatile usually in

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Speaker 1: a normal cycle, but don't know if it's gonna be

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Speaker 1: worth more in a year or two years. You're you're

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Speaker 1: hoping that in five years at least you've paid down

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Speaker 1: some of the mortgage amount, although you're paying mostly interest

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Speaker 1: in the beginning, and then ultimately you've created a little

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Speaker 1: wiggle room. But more than that, the biggest thing that's

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Speaker 1: gonna drain you is the transaction costs involved involved in

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Speaker 1: buying real estate, and there's a lot of people that

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Speaker 1: don't take that into consideration. When you're buying a home,

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Speaker 1: you're not thinking about it at all, Like the transaction

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Speaker 1: costs are usually all in the cellar. But when you're

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Speaker 1: selling the home, you're usually giving up a huge piece

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Speaker 1: of the profit if you haven't lived there that long,

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Speaker 1: and likely even dipping into your own savings to pay

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Speaker 1: the agent's fees if you haven't built up much equity. So, Joe,

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Speaker 1: you're talking about realtor fees basically, and that alone right

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Speaker 1: there is six and then with closing costs on top

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Speaker 1: of that when it comes time to sell, which sellers

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Speaker 1: often pick up a big chunk of the closing costs. Yeah,

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Speaker 1: but I mean you're you're looking at close to ten percent.

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Speaker 1: So I mean, quick math, say you are selling your

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Speaker 1: home for you thousand dollars. That's thirty dollars that you

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Speaker 1: don't get the key. That is a lot of money.

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Speaker 1: And if you're expecting that equity growth there within a

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Speaker 1: few years for the five years hits and you can't

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Speaker 1: bank on that. Yeah, And so typically in a year

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Speaker 1: or two or three, you're not going to hit that threshold,

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Speaker 1: and you'll be paying money out of pocket to sell

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Speaker 1: your house, and that is not a position you want

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Speaker 1: to be in. Another big rule that you need to follow.

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Speaker 1: I don't think you should really, for the most part,

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Speaker 1: even consider buying a home unless you have to put down.

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Speaker 1: That's for a couple of reasons. For that equity reason,

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Speaker 1: right that it's it's important that if you're buying something

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Speaker 1: that you they say for it, and you're financially prepared

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Speaker 1: to actually buy this house. And on top of that,

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Speaker 1: you also avoid paying private mortgage insurance which is called

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Speaker 1: p am I that can typically be hundred plus dollars

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Speaker 1: every month that essentially goes to the bank, and so

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Speaker 1: it makes your monthly housing costs go up even more. Yeah,

428
00:19:51,640 --> 00:19:53,960
Speaker 1: basically it's just a way for them to get money

429
00:19:53,960 --> 00:19:56,080
Speaker 1: out of you because you're a little higher risk. By

430
00:19:56,080 --> 00:19:59,040
Speaker 1: not putting that money down, they're holding more of the balance,

431
00:19:59,359 --> 00:20:01,399
Speaker 1: which is risk year for them. Oh and that's another

432
00:20:01,400 --> 00:20:03,720
Speaker 1: thing too, is that like basically the more you you're

433
00:20:03,720 --> 00:20:05,040
Speaker 1: able to put down, the better rate you're going to

434
00:20:05,119 --> 00:20:07,720
Speaker 1: get to. And so there's just so many reasons that

435
00:20:07,760 --> 00:20:10,200
Speaker 1: you want to you want to have down. That's sort

436
00:20:10,240 --> 00:20:14,080
Speaker 1: of a solid fast rule and that's something else too

437
00:20:14,119 --> 00:20:16,520
Speaker 1: that I'm afraid we're starting to see some of that

438
00:20:16,600 --> 00:20:20,840
Speaker 1: happening again, some lending where lenders are willing to write

439
00:20:20,840 --> 00:20:25,520
Speaker 1: loans on properties where buyers aren't putting down that And dude,

440
00:20:26,000 --> 00:20:28,719
Speaker 1: if that's not a sign of a potential, I mean,

441
00:20:28,760 --> 00:20:30,520
Speaker 1: there's not gonna be a housing crisis again, right, Like,

442
00:20:30,600 --> 00:20:32,400
Speaker 1: I think that's probably a once in a lifetime thing,

443
00:20:32,440 --> 00:20:35,640
Speaker 1: what what we went through ten years ago, But that's

444
00:20:35,680 --> 00:20:37,919
Speaker 1: still not a great sign. Yeah, I don't know. I

445
00:20:37,920 --> 00:20:39,520
Speaker 1: don't know if it's once in a lifetime. Honestly, I

446
00:20:39,560 --> 00:20:43,720
Speaker 1: feel like human behavior is completely I think once two

447
00:20:43,720 --> 00:20:47,040
Speaker 1: thousand two nine happened, I assumed that people would wise

448
00:20:47,119 --> 00:20:49,000
Speaker 1: up a little bit. Savings rates are back to where

449
00:20:49,040 --> 00:20:52,919
Speaker 1: they were in the toilet, like people making risk ere loans.

450
00:20:53,280 --> 00:20:55,480
Speaker 1: So I I don't know. I don't know if it's

451
00:20:55,560 --> 00:20:57,359
Speaker 1: never never again, I think we'll see it again a

452
00:20:57,359 --> 00:21:00,919
Speaker 1: whole another generation of buyers that didn't learn the previous

453
00:21:00,960 --> 00:21:03,439
Speaker 1: time because they weren't necessarily buying back then. Yeah, so

454
00:21:03,480 --> 00:21:07,080
Speaker 1: I think it's important to put down when buying a home.

455
00:21:07,160 --> 00:21:09,960
Speaker 1: There are very few exceptions. Like Matt said, you're gonna

456
00:21:09,960 --> 00:21:11,600
Speaker 1: get the better rate, you're gonna avoid p m I.

457
00:21:12,480 --> 00:21:15,000
Speaker 1: Even if your house does go down in value, you're

458
00:21:15,000 --> 00:21:17,080
Speaker 1: not gonna be coming out of pocket on top of that.

459
00:21:17,240 --> 00:21:20,760
Speaker 1: Likely in normal circumstances, if you have to sell in

460
00:21:20,800 --> 00:21:22,640
Speaker 1: a hurry, you just want to make sure you're financially

461
00:21:22,640 --> 00:21:25,040
Speaker 1: prepared to buy a home. Ultimately, if you can't afford

462
00:21:25,040 --> 00:21:27,199
Speaker 1: to put down on a home or close to it,

463
00:21:27,760 --> 00:21:29,760
Speaker 1: you just really need to reconsider whether you should be

464
00:21:29,760 --> 00:21:31,520
Speaker 1: a renter for right now until you can save with

465
00:21:31,560 --> 00:21:34,040
Speaker 1: that money. That's true, all right, Matt. So let's get

466
00:21:34,040 --> 00:21:35,960
Speaker 1: into the pros of renting. Then after that we're gonna

467
00:21:35,960 --> 00:21:37,800
Speaker 1: do the pros of buying, all right, So pros of

468
00:21:37,880 --> 00:21:43,040
Speaker 1: renting the first thing geographic mobility and flexibility and also

469
00:21:43,160 --> 00:21:45,920
Speaker 1: a little bit of financial flexibility to yeah, Joel, So

470
00:21:46,000 --> 00:21:48,439
Speaker 1: like the geographic mobility, right, that's kind of obvious. It's like,

471
00:21:48,520 --> 00:21:49,920
Speaker 1: all right, I want to live here for a short

472
00:21:49,920 --> 00:21:52,720
Speaker 1: period of time, check out the city or maybe just

473
00:21:52,760 --> 00:21:54,919
Speaker 1: a neighborhood, you know, to be able to have the

474
00:21:54,960 --> 00:21:57,920
Speaker 1: flexibility and the options to just move to a different

475
00:21:57,920 --> 00:22:00,760
Speaker 1: part of town or even move cities or countries. That's

476
00:22:00,840 --> 00:22:03,640
Speaker 1: incredible freedom that you don't really you're not gonna have

477
00:22:04,119 --> 00:22:07,520
Speaker 1: once you're buying. And the financial flexibility too, that's something

478
00:22:07,560 --> 00:22:09,600
Speaker 1: I don't think folks think about quite as often. But

479
00:22:09,880 --> 00:22:12,400
Speaker 1: when you're renting, your income doesn't need to be quite

480
00:22:12,400 --> 00:22:14,280
Speaker 1: a stable. So you've got a job and you're renting

481
00:22:14,280 --> 00:22:16,399
Speaker 1: at a certain certain dollar amount. If you happen to

482
00:22:16,480 --> 00:22:18,399
Speaker 1: lose your job, well you're gonna be out of that

483
00:22:18,480 --> 00:22:20,280
Speaker 1: lease pretty soon. So it's not a huge deal. It's not.

484
00:22:20,400 --> 00:22:22,120
Speaker 1: It's not a mortgage where you're locked in for say

485
00:22:22,160 --> 00:22:25,000
Speaker 1: fifteen or thirty years, and sometimes you know that maybe

486
00:22:25,000 --> 00:22:28,119
Speaker 1: for the next year or the next shovel several months

487
00:22:28,160 --> 00:22:29,760
Speaker 1: that your your your paycheck is going to be a

488
00:22:29,760 --> 00:22:31,600
Speaker 1: certain amount, but beyond that you don't really know. And

489
00:22:31,640 --> 00:22:36,280
Speaker 1: so it can be tough to sign thirty to forty

490
00:22:36,320 --> 00:22:39,080
Speaker 1: documents saying that you will pay this mortgage, which is

491
00:22:39,080 --> 00:22:41,359
Speaker 1: what happens when you buy a house. But you know,

492
00:22:41,400 --> 00:22:43,439
Speaker 1: sign a lease, there's a little less pressure there and

493
00:22:43,480 --> 00:22:45,480
Speaker 1: it give gives a little more flexibility. Well, let's say

494
00:22:45,520 --> 00:22:47,600
Speaker 1: you're young and you've got a job at a city

495
00:22:47,720 --> 00:22:49,399
Speaker 1: and then you know what, maybe next year you might

496
00:22:49,440 --> 00:22:51,760
Speaker 1: get a job offer in an a whole another city

497
00:22:51,880 --> 00:22:54,200
Speaker 1: for a lot more money geography. Yeah, and you can

498
00:22:54,240 --> 00:22:56,720
Speaker 1: move and if you own a home, it's tethered to

499
00:22:56,800 --> 00:22:59,439
Speaker 1: you in a way that renting is not. And so

500
00:22:59,640 --> 00:23:03,400
Speaker 1: you have this flexibility whether you're young or old, with new,

501
00:23:03,560 --> 00:23:07,879
Speaker 1: new job opportunities, whatever may come along, moving closer to family, uh,

502
00:23:08,200 --> 00:23:10,520
Speaker 1: as your your lifestyle changes, as you have kids, whatever

503
00:23:10,520 --> 00:23:13,560
Speaker 1: it may be. You have this ability to pick up

504
00:23:13,600 --> 00:23:17,280
Speaker 1: and move almost on a whim, essentially because you're not

505
00:23:17,359 --> 00:23:20,400
Speaker 1: tied down to any particular location because of a home.

506
00:23:20,760 --> 00:23:24,280
Speaker 1: Another great reason that geographic mobility is a plus in

507
00:23:24,320 --> 00:23:27,000
Speaker 1: the column of running. Let's say you moved to a

508
00:23:27,040 --> 00:23:29,439
Speaker 1: town and you're not sure what part of town you

509
00:23:29,440 --> 00:23:32,200
Speaker 1: want to live in yet. Oh yeah, that's yeah, that's huge.

510
00:23:32,320 --> 00:23:34,320
Speaker 1: You get to know the city for six months or

511
00:23:34,320 --> 00:23:37,240
Speaker 1: a year while you rent, and then you know exactly

512
00:23:37,240 --> 00:23:39,040
Speaker 1: where you want to buy. So it gives you that

513
00:23:39,080 --> 00:23:44,159
Speaker 1: opportunity to figure out the city, the layout, and then decide, Okay,

514
00:23:44,200 --> 00:23:46,080
Speaker 1: that's that's the side I want to be on. That's

515
00:23:46,119 --> 00:23:48,919
Speaker 1: the commutes bad if I live here versus there, and

516
00:23:48,960 --> 00:23:51,000
Speaker 1: you you learn a lot and so renting can be

517
00:23:51,240 --> 00:23:54,040
Speaker 1: perfect for those times too. Yeah. He gets into traffic

518
00:23:54,080 --> 00:23:56,200
Speaker 1: and like you said, you get to know the neighborhoods.

519
00:23:56,200 --> 00:23:57,600
Speaker 1: I mean, that's exactly what I was talking about at

520
00:23:57,600 --> 00:24:00,240
Speaker 1: the beginning, how the neighborhood that can now lived in.

521
00:24:00,240 --> 00:24:02,880
Speaker 1: When we first moved moved to Atlanta, we didn't know

522
00:24:03,119 --> 00:24:05,879
Speaker 1: anything about Atlanta other than we'd heard of this neighborhood

523
00:24:05,880 --> 00:24:08,399
Speaker 1: and so we're like, okay, But ultimately we realized that

524
00:24:08,400 --> 00:24:10,720
Speaker 1: that's just not the neighborhood where we wanted to live.

525
00:24:10,960 --> 00:24:13,600
Speaker 1: It didn't have the things that we're looking for. And

526
00:24:13,680 --> 00:24:15,120
Speaker 1: that's why we ended up where we are now because

527
00:24:15,119 --> 00:24:17,959
Speaker 1: we had two years of renting up there with all

528
00:24:18,080 --> 00:24:20,919
Speaker 1: utilities included, which was awesome, and we had those two

529
00:24:20,960 --> 00:24:22,320
Speaker 1: years to figure out where it was that we did

530
00:24:22,320 --> 00:24:24,800
Speaker 1: want to live. So, yeah, that's not something we had down.

531
00:24:24,840 --> 00:24:27,080
Speaker 1: But I totally agree with you from you know, personal

532
00:24:27,080 --> 00:24:30,560
Speaker 1: experience right there, man, that, uh, it just buys you

533
00:24:30,600 --> 00:24:33,080
Speaker 1: some time to figure things out. And that's especially true,

534
00:24:33,119 --> 00:24:36,200
Speaker 1: I would say for military families. There's so many military

535
00:24:36,240 --> 00:24:39,359
Speaker 1: families that have to move every two or three years,

536
00:24:39,920 --> 00:24:41,760
Speaker 1: and it can be a tough decision. I know, you

537
00:24:41,760 --> 00:24:43,760
Speaker 1: want to put roots down, you want to own a home.

538
00:24:43,800 --> 00:24:46,000
Speaker 1: There is something really fulfilling about that. And we'll talk

539
00:24:46,040 --> 00:24:49,000
Speaker 1: about that in the next section the pros of buying.

540
00:24:49,400 --> 00:24:51,640
Speaker 1: But it's just not worth the financial heartache that can

541
00:24:51,680 --> 00:24:53,199
Speaker 1: come along with it if you're not going to be

542
00:24:53,240 --> 00:24:55,560
Speaker 1: there for long. So if you are a military family

543
00:24:55,560 --> 00:24:57,720
Speaker 1: in particular, thank you for your service, thank you for

544
00:24:57,760 --> 00:25:00,840
Speaker 1: what you do for our country. But rent is probably

545
00:25:00,840 --> 00:25:02,199
Speaker 1: a better idea if you're only going to be at

546
00:25:02,240 --> 00:25:04,440
Speaker 1: a post for for two years, three at the max.

547
00:25:04,960 --> 00:25:08,119
Speaker 1: It's just not worth renting and getting into all that

548
00:25:08,200 --> 00:25:10,680
Speaker 1: because there's so much when it comes to selling a

549
00:25:10,720 --> 00:25:15,360
Speaker 1: home that's difficult. You're gonna want that geographic mobility factor. Yeah, Jill,

550
00:25:15,400 --> 00:25:19,280
Speaker 1: you mentioned financial hardship. That's a huge benefit to renting

551
00:25:20,200 --> 00:25:22,639
Speaker 1: is you know, when you're renting, you're not tied to

552
00:25:22,680 --> 00:25:25,720
Speaker 1: the housing market. So if things are declining, well, you're

553
00:25:25,720 --> 00:25:28,000
Speaker 1: gonna be losing equity. And so if you're in a

554
00:25:28,040 --> 00:25:29,879
Speaker 1: situation where you have to sell all of a sudden,

555
00:25:30,480 --> 00:25:33,399
Speaker 1: you're you're losing out and you're basically being forced to

556
00:25:33,400 --> 00:25:36,080
Speaker 1: sell when the market's low. If you're running, that's the

557
00:25:36,160 --> 00:25:37,840
Speaker 1: landlord problem. Yeah, you don't have to worry about that

558
00:25:37,880 --> 00:25:40,400
Speaker 1: at all. Something else, you don't have to worry about

559
00:25:40,400 --> 00:25:43,600
Speaker 1: it all when you're renting is fixing stuff that's right,

560
00:25:43,760 --> 00:25:46,359
Speaker 1: that's right. So that's again is the landlord problem. Right

561
00:25:46,359 --> 00:25:48,600
Speaker 1: when the fridge goes bust and I gotta go pick

562
00:25:48,680 --> 00:25:51,400
Speaker 1: up just called Joel at nine at night. I'll bring

563
00:25:51,400 --> 00:25:52,920
Speaker 1: a fridge over to your house. And my mom's to

564
00:25:52,960 --> 00:25:56,160
Speaker 1: five any day. So those are the things that as

565
00:25:56,200 --> 00:25:59,159
Speaker 1: a landlord you have to worry about. And and a

566
00:25:59,240 --> 00:26:02,439
Speaker 1: smart landlord, of course has has benefit if they're if

567
00:26:02,440 --> 00:26:04,680
Speaker 1: they're really smart about what they're doing, if they know

568
00:26:04,880 --> 00:26:07,040
Speaker 1: what they're getting into. But as a renter, there's a

569
00:26:07,040 --> 00:26:08,919
Speaker 1: lot of beauty in the fact that you don't have

570
00:26:09,000 --> 00:26:12,080
Speaker 1: to fix a leaky faucet or a busted air conditioner

571
00:26:12,440 --> 00:26:15,160
Speaker 1: or a roof that's messed up. There are all these

572
00:26:15,200 --> 00:26:17,280
Speaker 1: things that let's say you're not financially prepared to put

573
00:26:17,320 --> 00:26:19,439
Speaker 1: twenty percent down and have you know a fun to

574
00:26:19,480 --> 00:26:22,080
Speaker 1: fix your house. Renting is where it's at because you

575
00:26:22,080 --> 00:26:24,240
Speaker 1: don't have to fix any of those things that come up, Joel.

576
00:26:24,280 --> 00:26:26,720
Speaker 1: That actually makes me think of Mitch Hedberg. Did you

577
00:26:26,760 --> 00:26:28,640
Speaker 1: ever listen to him like back in the day, back

578
00:26:28,640 --> 00:26:30,760
Speaker 1: in college, But I've had so many people quote him

579
00:26:30,760 --> 00:26:34,080
Speaker 1: to me, Dude, he sounds hilarious weed. Yeah, I'll share

580
00:26:34,080 --> 00:26:36,080
Speaker 1: some Mitch Hedberg with you. He's he was, he was,

581
00:26:36,160 --> 00:26:39,840
Speaker 1: he was the best. Make me a mixtape, Matt, I'll

582
00:26:39,880 --> 00:26:42,280
Speaker 1: bring you a disk. It makes me think of a

583
00:26:42,359 --> 00:26:44,800
Speaker 1: joke or like a story or whatever that that he

584
00:26:44,840 --> 00:26:48,959
Speaker 1: would tell, and it was something like I went to

585
00:26:49,680 --> 00:26:53,879
Speaker 1: the home depot yesterday, which was totally unnecessary. What I

586
00:26:53,920 --> 00:26:56,920
Speaker 1: need to do is go to apartment depot where there's

587
00:26:56,920 --> 00:26:59,360
Speaker 1: a bunch of people standing around and saying we ain't

588
00:26:59,359 --> 00:27:05,399
Speaker 1: got to fix anything. Which now, as a landlord, I

589
00:27:05,480 --> 00:27:09,280
Speaker 1: totally understand the beauty of that joke. When I get

590
00:27:09,320 --> 00:27:12,119
Speaker 1: a call for a fridge or for fixing a a

591
00:27:12,160 --> 00:27:14,359
Speaker 1: shed and disrepair or whatever it is, just think of Mitch.

592
00:27:15,400 --> 00:27:19,200
Speaker 1: I think, man, there's some beauty. I'm hustling. I'm hustling

593
00:27:19,240 --> 00:27:21,639
Speaker 1: to make this to make money. As a lord and

594
00:27:21,640 --> 00:27:24,880
Speaker 1: as a renter man, you can kinda coast easy say

595
00:27:24,960 --> 00:27:28,240
Speaker 1: that there's beauty right As from a renters standpoint, I guess,

596
00:27:28,520 --> 00:27:30,040
Speaker 1: I guess that's something you don't really think about as

597
00:27:30,040 --> 00:27:32,199
Speaker 1: a renter, Like at least I didn't when I was

598
00:27:32,240 --> 00:27:34,840
Speaker 1: renting that I didn't have to ever worry about any

599
00:27:34,840 --> 00:27:36,159
Speaker 1: of that kind of stuff. I could just focus on

600
00:27:36,200 --> 00:27:38,240
Speaker 1: other things like starting a business, which which is you

601
00:27:38,240 --> 00:27:40,040
Speaker 1: know exactly what we did. I don't have to worry

602
00:27:40,040 --> 00:27:42,840
Speaker 1: about the air conditioning uh not working anymore because we

603
00:27:42,880 --> 00:27:46,760
Speaker 1: had been overrunning it keeping it at fifty degrees or whatever.

604
00:27:47,119 --> 00:27:50,359
Speaker 1: But yeah, man, there's there's there's there's truth, there no doubt.

605
00:27:50,480 --> 00:27:52,840
Speaker 1: And the other pro of renting you don't have to

606
00:27:52,840 --> 00:27:55,640
Speaker 1: put down a huge down payment. It's like we said, really,

607
00:27:55,680 --> 00:27:57,720
Speaker 1: if you want to buy home, you should have of

608
00:27:57,760 --> 00:28:00,840
Speaker 1: the purchase price to put down as a down payment. Yeah,

609
00:28:01,040 --> 00:28:04,119
Speaker 1: that is a lot of money, I think until you

610
00:28:04,160 --> 00:28:07,720
Speaker 1: start actually doing the mathematics, like you said earlier, like

611
00:28:07,960 --> 00:28:09,520
Speaker 1: that's a ton of money. Like if you're looking at

612
00:28:09,560 --> 00:28:13,760
Speaker 1: buying a two dollar home, that's forty grand plus other

613
00:28:13,800 --> 00:28:16,000
Speaker 1: expenses associated with it. And we're not even I don't

614
00:28:16,000 --> 00:28:17,719
Speaker 1: think I even have time to get into all this,

615
00:28:17,800 --> 00:28:21,040
Speaker 1: but like the inspection, the appraise, like these are all

616
00:28:21,160 --> 00:28:24,639
Speaker 1: things that that go into the purchase of a home. Paint,

617
00:28:24,720 --> 00:28:27,480
Speaker 1: minor repairs immediately when you move in, not to mention

618
00:28:27,560 --> 00:28:29,520
Speaker 1: major repairs that can come up. I mean, ultimately you

619
00:28:29,720 --> 00:28:33,679
Speaker 1: probably need to have closer to in savings for the

620
00:28:33,720 --> 00:28:36,280
Speaker 1: home price because you'll want that ten percent for those

621
00:28:36,280 --> 00:28:38,280
Speaker 1: other things to be able to do little stuff that

622
00:28:38,320 --> 00:28:42,160
Speaker 1: should be our new rule. Or you can't buy a home.

623
00:28:43,000 --> 00:28:45,000
Speaker 1: And the big thing that with with that for me

624
00:28:45,240 --> 00:28:47,920
Speaker 1: is there's a big opportunity costs. Yeah. I thought you're

625
00:28:47,920 --> 00:28:51,200
Speaker 1: gonna talk about that to give up forty dollars on

626
00:28:51,240 --> 00:28:54,120
Speaker 1: a two dollar home that you could have put elsewhere.

627
00:28:54,160 --> 00:28:56,160
Speaker 1: So let's say you put that forty dollars towards getting

628
00:28:56,160 --> 00:28:59,040
Speaker 1: an education, which might ultimately make you more money over

629
00:28:59,040 --> 00:29:01,040
Speaker 1: the years and more bank for your butt. Yeah. Or

630
00:29:01,120 --> 00:29:04,560
Speaker 1: you put into the stock market to work for you

631
00:29:04,640 --> 00:29:07,719
Speaker 1: over the next twenty or thirty years with compounding interest,

632
00:29:07,960 --> 00:29:09,840
Speaker 1: that's gonna be a lot more for you in retirement.

633
00:29:10,040 --> 00:29:12,160
Speaker 1: So I'm not saying that it's not worth while to

634
00:29:12,200 --> 00:29:14,200
Speaker 1: do that. I'm just saying that is a pro renting

635
00:29:14,520 --> 00:29:17,560
Speaker 1: that you can have more of your cash available to

636
00:29:17,600 --> 00:29:20,360
Speaker 1: put towards things that you want now or saving and

637
00:29:20,440 --> 00:29:24,040
Speaker 1: investing for the future further down the road. And that's

638
00:29:24,080 --> 00:29:26,600
Speaker 1: just a huge chunk of change that you're gonna need

639
00:29:26,640 --> 00:29:29,640
Speaker 1: as a down payment that could go elsewhere. Yeah, man,

640
00:29:29,720 --> 00:29:32,880
Speaker 1: I agree. So you want to get into the pros

641
00:29:33,040 --> 00:29:35,960
Speaker 1: of of buying next, let's do it, because I feel

642
00:29:35,960 --> 00:29:39,000
Speaker 1: like we just made renting sound real good. Yeah, at

643
00:29:39,040 --> 00:29:40,840
Speaker 1: the beginning of the episode, you talked about how much

644
00:29:41,040 --> 00:29:43,040
Speaker 1: you like owning a home, and I talked about how

645
00:29:43,120 --> 00:29:45,920
Speaker 1: much I like renting, or how much I did like renting.

646
00:29:45,920 --> 00:29:49,520
Speaker 1: I should say, yeah, there's definitely huge pros, huge advantages

647
00:29:49,560 --> 00:29:51,640
Speaker 1: to owning a home, and uh, yeah, let's let's get

648
00:29:51,640 --> 00:29:53,200
Speaker 1: into that now. It did just make me a little

649
00:29:53,240 --> 00:29:55,280
Speaker 1: tired thinking about all the things I do owning four

650
00:29:55,320 --> 00:29:58,080
Speaker 1: homes essentially my own home and three investment properties. I

651
00:29:58,160 --> 00:29:59,600
Speaker 1: was like, man, I do have a lot of things

652
00:29:59,600 --> 00:30:00,920
Speaker 1: I have to ex all the time, and you get

653
00:30:00,920 --> 00:30:04,080
Speaker 1: a fridge in the middle of the night times four exactly,

654
00:30:04,120 --> 00:30:06,600
Speaker 1: and stuff like that. But ultimately, there are so many

655
00:30:06,640 --> 00:30:09,160
Speaker 1: pros also to buying a home, and let's go through

656
00:30:09,160 --> 00:30:11,720
Speaker 1: those now. Yeah, man, the number one being that the

657
00:30:11,800 --> 00:30:14,360
Speaker 1: value of your home tends to rise over time. Yeah,

658
00:30:14,400 --> 00:30:17,640
Speaker 1: you're gonna see the equity grow in your home most often.

659
00:30:17,840 --> 00:30:20,840
Speaker 1: I mean, it's not a guarantee, obviously, but that's a

660
00:30:20,920 --> 00:30:24,960
Speaker 1: great way for folks to essentially build wealth in an

661
00:30:25,040 --> 00:30:28,440
Speaker 1: era where folks are under saving anyway, it's good to

662
00:30:28,440 --> 00:30:31,120
Speaker 1: know that at least by default, some of your monthly

663
00:30:31,160 --> 00:30:34,400
Speaker 1: mortgage amount is going towards principle, and then the growth

664
00:30:34,440 --> 00:30:38,000
Speaker 1: obviously of your house appreciating over time. Yeah, and if

665
00:30:38,000 --> 00:30:40,400
Speaker 1: you're going to meet that five year rule or what

666
00:30:40,440 --> 00:30:42,800
Speaker 1: should likely probably be even more like a seven year rule,

667
00:30:43,000 --> 00:30:44,760
Speaker 1: if you're gonna stay in your house that long or

668
00:30:44,800 --> 00:30:47,080
Speaker 1: even longer, if you're gonna make a long term decision

669
00:30:47,160 --> 00:30:51,040
Speaker 1: about where you live and you're buying, that equity factor

670
00:30:51,240 --> 00:30:55,080
Speaker 1: really matters and really comes into bear. The further you

671
00:30:55,160 --> 00:30:57,320
Speaker 1: get along your loan, the more you've paid down, and

672
00:30:57,320 --> 00:30:59,480
Speaker 1: then the more that the value of the home has risen,

673
00:31:00,000 --> 00:31:02,600
Speaker 1: you're starting to see, Man, there's actually some decent equity

674
00:31:02,640 --> 00:31:05,840
Speaker 1: over time. But you can't be shortsighted if you have

675
00:31:05,880 --> 00:31:08,800
Speaker 1: your sight set on staying in a place a long time.

676
00:31:08,960 --> 00:31:11,520
Speaker 1: The build up an equity can be a really huge perk.

677
00:31:12,040 --> 00:31:14,160
Speaker 1: And something else that we will also see kind of

678
00:31:14,160 --> 00:31:18,320
Speaker 1: climb over time. Generally speaking, our rents, right, and so

679
00:31:18,560 --> 00:31:21,880
Speaker 1: in most cities and most markets, rents continue to rise.

680
00:31:22,320 --> 00:31:23,760
Speaker 1: And when you purchased a home and you have a

681
00:31:23,760 --> 00:31:27,360
Speaker 1: fixed rate mortgage, your payment is locked in. Certainly, your

682
00:31:27,400 --> 00:31:30,240
Speaker 1: taxes and your insurance will change slightly here and there,

683
00:31:30,240 --> 00:31:32,240
Speaker 1: and that will have an effect on your scrow, which

684
00:31:32,600 --> 00:31:36,400
Speaker 1: ultimately affects your payment. But over the long haul, your

685
00:31:36,400 --> 00:31:38,959
Speaker 1: payment is really pretty much gonna stay close to what

686
00:31:39,000 --> 00:31:41,520
Speaker 1: it is now, which is awesome. How cool is that

687
00:31:41,560 --> 00:31:44,400
Speaker 1: to know that we've got fixed rate mortgages and dude,

688
00:31:44,400 --> 00:31:46,760
Speaker 1: in like ten years, our payments are basically going to

689
00:31:46,800 --> 00:31:48,320
Speaker 1: be the same that they are now. And I do

690
00:31:48,400 --> 00:31:50,160
Speaker 1: not even want to think about where rents are going

691
00:31:50,240 --> 00:31:51,800
Speaker 1: to be in ten years. You have no doubt that's

692
00:31:51,800 --> 00:31:54,560
Speaker 1: a huge park because if you're a renter in a

693
00:31:54,600 --> 00:31:56,840
Speaker 1: lot of cities right now, the way rents have been going,

694
00:31:57,680 --> 00:32:00,240
Speaker 1: it's it's kind of shocking the increases every year sometimes,

695
00:32:00,840 --> 00:32:02,880
Speaker 1: and like we said, you know, what happens today doesn't

696
00:32:02,880 --> 00:32:04,959
Speaker 1: determine tomorrow. Like rents going up right now doesn't mean

697
00:32:04,960 --> 00:32:06,760
Speaker 1: rents are going up next year or the year after that.

698
00:32:06,840 --> 00:32:09,360
Speaker 1: Apartments are being built and that could calm down a

699
00:32:09,360 --> 00:32:12,440
Speaker 1: lot in the near future. But ultimately, the security of

700
00:32:12,480 --> 00:32:15,080
Speaker 1: knowing that the mortgage you have in place isn't going

701
00:32:15,120 --> 00:32:18,160
Speaker 1: to change much and that rents can climb a lot

702
00:32:18,200 --> 00:32:21,280
Speaker 1: over the years, that can make a huge difference. You know,

703
00:32:21,320 --> 00:32:24,240
Speaker 1: over time, Essentially as your monthly payments stay the same

704
00:32:24,360 --> 00:32:27,320
Speaker 1: and someone that's renting, there's go up by a lot. Yeah,

705
00:32:27,360 --> 00:32:30,200
Speaker 1: security man. And another aspect of security two is just

706
00:32:30,280 --> 00:32:32,760
Speaker 1: knowing that you've got a place to live. Right, So

707
00:32:32,800 --> 00:32:35,640
Speaker 1: as long as you keep making your payments every month,

708
00:32:35,680 --> 00:32:37,480
Speaker 1: when you've got a mortgage, you get to stay in

709
00:32:37,480 --> 00:32:40,959
Speaker 1: the house. Uh, No one's gonna kick you out. Versus

710
00:32:41,440 --> 00:32:44,200
Speaker 1: even if you're an on time paying tenant and your

711
00:32:44,280 --> 00:32:47,000
Speaker 1: your renter, there's a chance that the landlord may not

712
00:32:47,080 --> 00:32:50,280
Speaker 1: renew your lease for that next year. He might decide

713
00:32:50,320 --> 00:32:52,760
Speaker 1: to run it out to a friend or cousin, or

714
00:32:52,800 --> 00:32:54,240
Speaker 1: might be time to sell. I mean, there's just so

715
00:32:54,280 --> 00:32:58,479
Speaker 1: many considerations when it comes to investment properties. So if

716
00:32:58,520 --> 00:33:00,680
Speaker 1: you really want to put down roots where to me,

717
00:33:00,800 --> 00:33:03,320
Speaker 1: that's like the biggest factor in wanting to buy a

718
00:33:03,320 --> 00:33:06,280
Speaker 1: house versus renting. If I really want to put roots

719
00:33:06,320 --> 00:33:10,160
Speaker 1: down somewhere particular, Buying a home gives you that ability

720
00:33:10,200 --> 00:33:14,280
Speaker 1: to be locked in in a specific location on a

721
00:33:14,320 --> 00:33:18,760
Speaker 1: specific street with specific neighbors over the long term, and

722
00:33:18,840 --> 00:33:21,440
Speaker 1: as a renter, you ultimately don't get to make that choice,

723
00:33:21,880 --> 00:33:23,880
Speaker 1: which can be one of the harder aspects of being

724
00:33:23,880 --> 00:33:26,920
Speaker 1: a renter. Yeah, just the having to move. And that's

725
00:33:26,960 --> 00:33:28,760
Speaker 1: the other thing too, is moving gets expensive, you know,

726
00:33:28,800 --> 00:33:30,280
Speaker 1: like if you're having you know, say you find a

727
00:33:30,320 --> 00:33:32,400
Speaker 1: great place that you like and you're there for a year,

728
00:33:32,440 --> 00:33:35,120
Speaker 1: but then they end up selling it or they jack

729
00:33:35,200 --> 00:33:37,760
Speaker 1: up the rent too much and you ultimately I want

730
00:33:37,760 --> 00:33:40,480
Speaker 1: to go somewhere this cheaper, having to move every single time,

731
00:33:40,520 --> 00:33:44,040
Speaker 1: and it just sounds exhausting. Yeah, So on that plus side,

732
00:33:44,120 --> 00:33:46,640
Speaker 1: right for renting, you had that geographic mobility, but on

733
00:33:46,680 --> 00:33:49,480
Speaker 1: the downside, you have to pay to move essentially every

734
00:33:49,560 --> 00:33:52,040
Speaker 1: time you want to go somewhere different. Hopefully you don't

735
00:33:52,040 --> 00:33:55,040
Speaker 1: have a ton of stuff. And another probe buying a

736
00:33:55,120 --> 00:33:57,720
Speaker 1: home is you have the creative freedom to change things.

737
00:33:57,800 --> 00:34:01,840
Speaker 1: So a landlord determines paint colors on the wall and

738
00:34:02,320 --> 00:34:04,800
Speaker 1: the floor plan essentially can't be changed as a renter,

739
00:34:05,360 --> 00:34:08,640
Speaker 1: but as a buyer, you can make it whatever color

740
00:34:08,680 --> 00:34:11,440
Speaker 1: you want bright orange, uh, and you can you can

741
00:34:11,440 --> 00:34:15,200
Speaker 1: plant plants outside, you can make additions, you can renovate

742
00:34:15,239 --> 00:34:18,440
Speaker 1: a bathroom. You've got. It's really essentially at your disposal

743
00:34:18,560 --> 00:34:20,799
Speaker 1: as as the owner of the home. And that's kind

744
00:34:20,800 --> 00:34:23,520
Speaker 1: of cool that making it your own kind of place.

745
00:34:23,719 --> 00:34:27,160
Speaker 1: That's not unique to like Americans, is like anywhere people

746
00:34:27,200 --> 00:34:29,279
Speaker 1: like to live, like making it their own, like little

747
00:34:29,320 --> 00:34:31,959
Speaker 1: touches here and there and more than just a throw rug.

748
00:34:32,040 --> 00:34:34,560
Speaker 1: You know. Yeah, I'll do. Something we haven't talked about

749
00:34:34,680 --> 00:34:38,080
Speaker 1: yet either, is the tax benefits of owning. I mean

750
00:34:38,080 --> 00:34:40,879
Speaker 1: that's a huge sort of financial one too, where if

751
00:34:40,920 --> 00:34:43,400
Speaker 1: you have a home and when you're making mortgage payments,

752
00:34:43,400 --> 00:34:46,600
Speaker 1: a portion of your payments goes towards taxes, and a

753
00:34:46,640 --> 00:34:48,759
Speaker 1: portion of that goes towards interests, and a portion of

754
00:34:48,760 --> 00:34:52,000
Speaker 1: that goes towards principle, well you can the ducts the

755
00:34:52,040 --> 00:34:54,279
Speaker 1: portion that goes to taxes and the portion that goes

756
00:34:54,320 --> 00:34:56,880
Speaker 1: to interest from your oarned income. Is that something like

757
00:34:56,920 --> 00:34:59,640
Speaker 1: I count on. It's kind of intangible when you're gonna

758
00:34:59,640 --> 00:35:01,719
Speaker 1: added us. Yeah, it's like an ad added bonus thing.

759
00:35:01,760 --> 00:35:05,279
Speaker 1: But um, it's definitely a nice benefit. You know. Like

760
00:35:05,280 --> 00:35:06,759
Speaker 1: I've never sat down in be like, all right, how

761
00:35:06,800 --> 00:35:08,880
Speaker 1: much would I would I actually owe in taxes this

762
00:35:08,960 --> 00:35:11,319
Speaker 1: year if I didn't own a home, but it would

763
00:35:11,440 --> 00:35:14,160
Speaker 1: actually it might be like a nice exercise to do that. Yeah,

764
00:35:14,160 --> 00:35:16,319
Speaker 1: it would be. I think most people probably put too

765
00:35:16,360 --> 00:35:17,879
Speaker 1: much stock in that and they're like, I gotta buy

766
00:35:17,880 --> 00:35:20,680
Speaker 1: a home because of the mortgage intersduction. Yeah, like, who, No,

767
00:35:21,520 --> 00:35:23,600
Speaker 1: that is not a reason. That is a poor reason

768
00:35:23,640 --> 00:35:25,959
Speaker 1: to buy a home, but it is an added perk

769
00:35:26,320 --> 00:35:30,040
Speaker 1: of home, yeah, totally. And something else too, it dude,

770
00:35:30,120 --> 00:35:32,120
Speaker 1: is when you own a home, too, it gives you

771
00:35:32,239 --> 00:35:37,279
Speaker 1: the ability or the options to potentially convert that home

772
00:35:37,360 --> 00:35:40,200
Speaker 1: that you lived in into a rental. That's something you've

773
00:35:40,200 --> 00:35:43,360
Speaker 1: done twice now, it's something that Kate and I have

774
00:35:43,440 --> 00:35:46,680
Speaker 1: done once. And you know, when you're running, you just

775
00:35:46,719 --> 00:35:48,360
Speaker 1: don't really have that option. But to be able to

776
00:35:48,400 --> 00:35:51,959
Speaker 1: convert something that you were enjoying, uh from a sort

777
00:35:52,000 --> 00:35:54,799
Speaker 1: of personal standpoint too, then kind of transform that into

778
00:35:54,840 --> 00:35:58,600
Speaker 1: something that makes you money into something that provides a

779
00:35:58,600 --> 00:36:01,879
Speaker 1: stream of income, that's awesome. Yeah. Or even subletting while

780
00:36:01,920 --> 00:36:04,520
Speaker 1: you still live there, Yeah, running out a room on

781
00:36:04,600 --> 00:36:07,760
Speaker 1: Airbnb or to a friend, stuff like that that can really,

782
00:36:08,360 --> 00:36:10,359
Speaker 1: you know, cut your housing costs. So I think if

783
00:36:10,400 --> 00:36:12,640
Speaker 1: you are buying a home and you're planning on subletting

784
00:36:12,640 --> 00:36:15,120
Speaker 1: a portion of it too, that's another good perk. Oh yeah,

785
00:36:15,239 --> 00:36:17,480
Speaker 1: you can use it however you deem fit. Whereas if

786
00:36:17,480 --> 00:36:20,840
Speaker 1: you're renting a home, there are usually clauses in place.

787
00:36:20,880 --> 00:36:23,200
Speaker 1: You might want to read your lease thoroughly because you're

788
00:36:23,200 --> 00:36:25,480
Speaker 1: probably not allowed to sublet. But if you own that home,

789
00:36:25,800 --> 00:36:28,600
Speaker 1: you can essentially cut your housing costs by renting portions

790
00:36:28,600 --> 00:36:31,000
Speaker 1: of it out to other people. Yeah, which you did.

791
00:36:31,160 --> 00:36:32,560
Speaker 1: I feel like I kind of missed the boat on that.

792
00:36:32,600 --> 00:36:34,239
Speaker 1: You know, I didn't consider buying a home, and so

793
00:36:34,360 --> 00:36:36,399
Speaker 1: after I was I was married, and so I've got

794
00:36:36,440 --> 00:36:40,840
Speaker 1: my built in wife roommate, uh, which is awesome, But

795
00:36:41,280 --> 00:36:42,760
Speaker 1: I don't want to make it sound like I totally

796
00:36:42,760 --> 00:36:45,279
Speaker 1: missed out I'm living with other dudes that didn't clean

797
00:36:45,320 --> 00:36:48,719
Speaker 1: up after themselves, because that kind of sounds terrible a

798
00:36:48,760 --> 00:36:50,239
Speaker 1: financial side of it. You know, if we can make

799
00:36:50,280 --> 00:36:52,120
Speaker 1: that happen for you, buddy, we can put you in

800
00:36:52,120 --> 00:36:55,080
Speaker 1: that like Big Brother House on TBS or whatever that is. Yeah.

801
00:36:55,120 --> 00:36:57,160
Speaker 1: I think that's just a really cool way to be

802
00:36:57,200 --> 00:37:01,840
Speaker 1: able to reduce your monthly mortgage payment by by sharing

803
00:37:01,840 --> 00:37:03,759
Speaker 1: the space sub letting it. So we've talked about the

804
00:37:03,760 --> 00:37:06,319
Speaker 1: pros of renting, the pros of buying. Ultimately, what it

805
00:37:06,320 --> 00:37:09,399
Speaker 1: comes down to in so many ways is where you're

806
00:37:09,480 --> 00:37:12,680
Speaker 1: at in your lifestyle and if you're prone to moving

807
00:37:12,840 --> 00:37:14,839
Speaker 1: if you're tired of your job and are thinking about

808
00:37:14,880 --> 00:37:18,000
Speaker 1: applying for jobs in other cities, or if you're in

809
00:37:18,040 --> 00:37:20,320
Speaker 1: an industry where you know there's like a lot of movements,

810
00:37:20,640 --> 00:37:22,759
Speaker 1: not just within the company, but if that means just

811
00:37:22,840 --> 00:37:25,880
Speaker 1: literally moving geographic locations as well. That's something you need

812
00:37:25,920 --> 00:37:27,880
Speaker 1: to keep in mind when it comes to making this

813
00:37:27,960 --> 00:37:30,520
Speaker 1: decision of should I rent or should I buy? So

814
00:37:30,600 --> 00:37:33,040
Speaker 1: much of it comes down to lifestyle and where you're

815
00:37:33,080 --> 00:37:36,319
Speaker 1: at in life. It's not well who renting one or

816
00:37:36,400 --> 00:37:41,000
Speaker 1: well who buying a house wins. They're both fantastic decisions

817
00:37:41,040 --> 00:37:44,319
Speaker 1: for different people at different points in their lives, and

818
00:37:44,360 --> 00:37:47,799
Speaker 1: hopefully we've dispelled some of the myths that renting is

819
00:37:47,840 --> 00:37:50,720
Speaker 1: throwing away money and that buying a home is always

820
00:37:50,760 --> 00:37:53,640
Speaker 1: a good investment. Yeah, Joe, I think that's just the

821
00:37:53,640 --> 00:37:56,080
Speaker 1: biggest thing that that folks need to take take into account,

822
00:37:56,200 --> 00:37:59,600
Speaker 1: right where are they in their life and make the

823
00:37:59,600 --> 00:38:03,320
Speaker 1: decisions that are appropriate for that period. Might toss that

824
00:38:03,400 --> 00:38:05,120
Speaker 1: question up or something similar, I guess up in our

825
00:38:05,120 --> 00:38:08,040
Speaker 1: Facebook group just talking about if folks had ever regretted,

826
00:38:08,080 --> 00:38:11,200
Speaker 1: you know, say, purchasing at home, and speaking of lifestyle,

827
00:38:11,239 --> 00:38:14,080
Speaker 1: someone had mentioned about building a home or purchasing a

828
00:38:14,160 --> 00:38:16,719
Speaker 1: home before they had kids, and when the time came

829
00:38:17,000 --> 00:38:18,840
Speaker 1: and they had to start considering schools, they realized they

830
00:38:18,840 --> 00:38:21,799
Speaker 1: needed to move. And so for them, I don't want

831
00:38:21,800 --> 00:38:24,160
Speaker 1: to say that like renting necessarily would have been a

832
00:38:24,200 --> 00:38:27,120
Speaker 1: great option, But at the same time, had you've been

833
00:38:27,120 --> 00:38:29,680
Speaker 1: in that situation, I guess if you're renting, there wouldn't

834
00:38:29,719 --> 00:38:33,040
Speaker 1: be the I guess potential for for financial loss quite

835
00:38:33,080 --> 00:38:37,799
Speaker 1: as much if you're renting versus buying in that situation. True. Yeah,

836
00:38:37,800 --> 00:38:41,799
Speaker 1: and for anybody that thinks that buying a home it's

837
00:38:41,840 --> 00:38:43,879
Speaker 1: just slam dunk always a good idea. And I think

838
00:38:43,880 --> 00:38:46,640
Speaker 1: most people in our age, especially after seeing our parents

839
00:38:46,640 --> 00:38:48,920
Speaker 1: go through the Great Recession and we were kind of

840
00:38:48,920 --> 00:38:52,120
Speaker 1: coming of age at the same time, most people in

841
00:38:52,160 --> 00:38:55,640
Speaker 1: our age group, I feel like that notion is mostly dispelled.

842
00:38:55,760 --> 00:39:00,239
Speaker 1: Buying a home equals always good. But if you're doubt,

843
00:39:00,280 --> 00:39:02,520
Speaker 1: check out our Facebook group and you'll see some of

844
00:39:02,560 --> 00:39:06,319
Speaker 1: the stories. For instance, Amy wrote, purchasing our last home

845
00:39:06,560 --> 00:39:09,359
Speaker 1: is my biggest financial mistake, and there were a few

846
00:39:09,400 --> 00:39:13,120
Speaker 1: folks like that that kind of quickly touted their stories

847
00:39:13,120 --> 00:39:15,319
Speaker 1: of buying a home and how it actually did not

848
00:39:15,360 --> 00:39:17,799
Speaker 1: work out. In their favor, and the market that we've

849
00:39:17,840 --> 00:39:21,480
Speaker 1: had lately has been really irregular. It's been a market

850
00:39:21,520 --> 00:39:24,720
Speaker 1: on the rebound, and so to expect things to continue

851
00:39:24,760 --> 00:39:26,839
Speaker 1: to go the way they've been going and to think

852
00:39:27,360 --> 00:39:31,000
Speaker 1: appreciation is going to happen at this sort of torrid pace,

853
00:39:31,440 --> 00:39:33,680
Speaker 1: that's not going to be the case. And you need

854
00:39:33,719 --> 00:39:36,160
Speaker 1: to make sure that the fundamentals behind why you're buying

855
00:39:36,160 --> 00:39:38,200
Speaker 1: a home and how much money you're bringing to the

856
00:39:38,200 --> 00:39:41,680
Speaker 1: table make the decision to buy a home actually makes

857
00:39:41,719 --> 00:39:44,480
Speaker 1: sense for you, all right, Matt. Back to the beer,

858
00:39:44,719 --> 00:39:47,919
Speaker 1: Juice Bar pale Ale from Wrecking Bar Group Pub, one

859
00:39:47,960 --> 00:39:50,960
Speaker 1: of my all time favorite breweries. This is a beer

860
00:39:51,040 --> 00:39:53,640
Speaker 1: that the more I drink it, the more I like it,

861
00:39:54,160 --> 00:39:55,560
Speaker 1: you know, like I feel like some of these beers

862
00:39:55,600 --> 00:39:56,799
Speaker 1: kind of by the end of it, your there's some

863
00:39:56,840 --> 00:40:00,839
Speaker 1: palette fatigue, and even though I love beers with tons

864
00:40:00,840 --> 00:40:03,239
Speaker 1: of flavor, sometimes you're kind of getting you're like almost

865
00:40:03,280 --> 00:40:05,480
Speaker 1: ready for it to be done. You're ready for it

866
00:40:05,520 --> 00:40:06,759
Speaker 1: to be done with and you're ready to kind of

867
00:40:06,800 --> 00:40:08,640
Speaker 1: move on. And that is not the case with this one.

868
00:40:08,719 --> 00:40:10,760
Speaker 1: I'm getting towards the end of it and I really

869
00:40:10,760 --> 00:40:12,839
Speaker 1: could just crack open another one of these, I think,

870
00:40:12,880 --> 00:40:15,840
Speaker 1: and uh, polish it off. I agree, super hot forward,

871
00:40:15,880 --> 00:40:19,759
Speaker 1: but really mellow and light and so really easy to drink.

872
00:40:19,840 --> 00:40:22,799
Speaker 1: This feels really crushable but with lots of flavor and so,

873
00:40:22,920 --> 00:40:24,760
Speaker 1: like we were talking about at the beginning of the podcast,

874
00:40:25,000 --> 00:40:27,759
Speaker 1: session beers, and this is more like a session pale ale.

875
00:40:28,200 --> 00:40:30,319
Speaker 1: Ideally you wanted to be one that you could drink

876
00:40:30,320 --> 00:40:34,600
Speaker 1: three of in a row. And three beers that's a lot, man,

877
00:40:34,920 --> 00:40:37,279
Speaker 1: it is. And and and that's not normally what I want

878
00:40:37,280 --> 00:40:39,440
Speaker 1: in a beer, Like we're drinking one beer. I normally

879
00:40:39,480 --> 00:40:42,319
Speaker 1: I limit myself. But this is a great beach beer.

880
00:40:42,600 --> 00:40:44,360
Speaker 1: It's like at the beach, you do want three beers,

881
00:40:44,480 --> 00:40:48,200
Speaker 1: right because you're the hydrated basically, and and beer helps dehydration.

882
00:40:49,840 --> 00:40:51,279
Speaker 1: If you're not the hydrad you can swim out into

883
00:40:51,280 --> 00:40:53,960
Speaker 1: the ocean and then go to the bathroom and exactly.

884
00:40:54,480 --> 00:40:57,680
Speaker 1: So this is yeah, great for for like a man

885
00:40:57,800 --> 00:41:00,560
Speaker 1: Saturday afternoon hang or something like that, where where you

886
00:41:00,560 --> 00:41:02,879
Speaker 1: want a couple of beers that day, but you don't

887
00:41:02,880 --> 00:41:06,440
Speaker 1: want to be tipsy after your first one. Oh man,

888
00:41:06,520 --> 00:41:09,680
Speaker 1: the beach. That's why I was thinking about this beer.

889
00:41:09,800 --> 00:41:11,279
Speaker 1: Like you're saying at the beach or whatever. A lot

890
00:41:11,320 --> 00:41:13,720
Speaker 1: of folks have been, I guess recently gone to the beach,

891
00:41:13,880 --> 00:41:16,440
Speaker 1: but we haven't. But I know that we're gonna be

892
00:41:16,480 --> 00:41:19,480
Speaker 1: going to the beach together soon. I'm pumped for that

893
00:41:19,600 --> 00:41:21,759
Speaker 1: next month. It's gonna be awesome. Can we record an

894
00:41:21,760 --> 00:41:25,759
Speaker 1: episode together while the waves wash over our feet at night?

895
00:41:26,440 --> 00:41:30,320
Speaker 1: At night on the beach? Yeah, sitting there, that sounds romantic.

896
00:41:31,160 --> 00:41:33,919
Speaker 1: We'll think about it. So yeah again. Great beer juice

897
00:41:33,920 --> 00:41:36,120
Speaker 1: bar Pale Ale from Wreaking Bar. If you live in

898
00:41:36,120 --> 00:41:38,719
Speaker 1: Atlanta or you're visiting, check it out. Awesome group pub.

899
00:41:38,840 --> 00:41:40,759
Speaker 1: I guess give out the good work. All right, jel,

900
00:41:41,360 --> 00:41:44,640
Speaker 1: let's do our final recap. So yeah, mat. The first

901
00:41:44,640 --> 00:41:48,000
Speaker 1: thing in overarching rule, make sure you're not overspending on

902
00:41:48,080 --> 00:41:50,360
Speaker 1: your housing costs. You don't want to be house poor.

903
00:41:50,640 --> 00:41:54,120
Speaker 1: Whether you're renting or buying, make sure that your overall

904
00:41:54,160 --> 00:41:58,920
Speaker 1: housing costs are less than twenty of your take home pay.

905
00:41:59,200 --> 00:42:02,040
Speaker 1: A couple of quick rule to consider before you buy

906
00:42:02,200 --> 00:42:04,400
Speaker 1: is to make sure that you're gonna be sticking around

907
00:42:04,440 --> 00:42:06,920
Speaker 1: for a number of years. Uh specifically, you want to

908
00:42:06,920 --> 00:42:09,680
Speaker 1: be there for at least five years. And also to

909
00:42:09,719 --> 00:42:12,160
Speaker 1: make sure you have at least down to put down

910
00:42:12,160 --> 00:42:14,040
Speaker 1: on the home. That's going to get you a better rate,

911
00:42:14,320 --> 00:42:16,360
Speaker 1: and that also allows you to avoid p m I,

912
00:42:16,440 --> 00:42:20,520
Speaker 1: which can sometimes cost you a couple hundred dollars a month. Yeah,

913
00:42:20,600 --> 00:42:23,600
Speaker 1: that also means you're financially prepared to buy the house.

914
00:42:24,040 --> 00:42:27,080
Speaker 1: But some of the pros of renting geographic mobility, and

915
00:42:27,080 --> 00:42:28,839
Speaker 1: there are so many people that need this, whether you're

916
00:42:28,880 --> 00:42:33,120
Speaker 1: young or old, in the military or regular civilian employee.

917
00:42:33,360 --> 00:42:37,000
Speaker 1: The ability to move wherever you want every year because

918
00:42:37,000 --> 00:42:41,400
Speaker 1: you're a renter, and you can't underestimate that pro of renting. Yeah,

919
00:42:41,480 --> 00:42:43,600
Speaker 1: and not just for reasons for like your job, but

920
00:42:43,840 --> 00:42:46,880
Speaker 1: just say moving from one neighborhood to the next, right, yep, exactly.

921
00:42:47,280 --> 00:42:50,439
Speaker 1: Also not having to fix anything, And if you are

922
00:42:50,960 --> 00:42:53,400
Speaker 1: a renter right now, you might take that for granted,

923
00:42:53,640 --> 00:42:56,560
Speaker 1: but but please don't because that is a huge perk.

924
00:42:56,880 --> 00:42:59,759
Speaker 1: And not having to deal with a busted air conditioner

925
00:43:00,200 --> 00:43:01,960
Speaker 1: or a roof that needs to be replaced. Those can

926
00:43:02,000 --> 00:43:05,480
Speaker 1: be really really costly repairs, and not having to deal

927
00:43:05,480 --> 00:43:08,480
Speaker 1: with those allows you to focus more on building a

928
00:43:08,520 --> 00:43:11,400
Speaker 1: business or pursuing other things that you want to do. Really,

929
00:43:11,800 --> 00:43:14,920
Speaker 1: it's just less responsibility in general. Yeah, man. And then

930
00:43:15,000 --> 00:43:18,480
Speaker 1: so a couple of pros of buying is that typically

931
00:43:18,520 --> 00:43:21,359
Speaker 1: your mortgage amount is going to stay the same while

932
00:43:21,480 --> 00:43:25,280
Speaker 1: rents will continue to climb and rise in the country,

933
00:43:25,920 --> 00:43:29,200
Speaker 1: your mortgage will fluctuate a little bit again with insurance

934
00:43:29,360 --> 00:43:32,080
Speaker 1: and taxes, but for the most part, you're gonna lock

935
00:43:32,120 --> 00:43:34,560
Speaker 1: in that expense as sort of a fixed monthly amount

936
00:43:34,600 --> 00:43:36,600
Speaker 1: and that's not going to change until you pay off

937
00:43:36,600 --> 00:43:40,080
Speaker 1: your mortgage. Again, there's also a huge security in knowing

938
00:43:40,160 --> 00:43:41,759
Speaker 1: that you can stay in your house no matter what.

939
00:43:41,920 --> 00:43:45,719
Speaker 1: If you're a tenant, your landlord has ultimate say over

940
00:43:45,760 --> 00:43:47,319
Speaker 1: whether you stay in the house from year to year.

941
00:43:47,600 --> 00:43:50,600
Speaker 1: They might want to sell it or rent it out

942
00:43:50,640 --> 00:43:54,279
Speaker 1: to a friend, or raise the rent exorbitantly that you're

943
00:43:54,320 --> 00:43:56,080
Speaker 1: not willing to pay. If you're on the home with

944
00:43:56,120 --> 00:43:58,680
Speaker 1: a fixed rate mortgage, you don't have to consider that,

945
00:43:59,000 --> 00:44:00,640
Speaker 1: and whether you want to stay in that home is

946
00:44:00,760 --> 00:44:03,759
Speaker 1: ultimately up to you. And again, these are just a

947
00:44:03,760 --> 00:44:07,320
Speaker 1: couple of the pros of renting and the pros of buying.

948
00:44:07,360 --> 00:44:10,000
Speaker 1: I guess that maybe we're most drawn to but yeah,

949
00:44:10,040 --> 00:44:12,399
Speaker 1: hopefully we were able to give you something to think

950
00:44:12,400 --> 00:44:17,360
Speaker 1: about and definitely consider before you start automatically making the

951
00:44:17,360 --> 00:44:20,839
Speaker 1: assumption that renting is is throwing away money and that

952
00:44:20,920 --> 00:44:24,160
Speaker 1: purchasing a home is always the wise decision financially. Yeah,

953
00:44:24,160 --> 00:44:25,920
Speaker 1: I know, the waters can be a little money, and

954
00:44:25,920 --> 00:44:28,920
Speaker 1: hopefully we cleared things up just a little bit. Ultimately,

955
00:44:28,960 --> 00:44:31,279
Speaker 1: the biggest factor comes down to your lifestyle, where you're

956
00:44:31,320 --> 00:44:34,319
Speaker 1: at in life. Do some thinking about where you're going

957
00:44:34,360 --> 00:44:36,840
Speaker 1: to be in five years and if you're planning on

958
00:44:36,920 --> 00:44:39,080
Speaker 1: being in the same place, that really helps you make

959
00:44:39,080 --> 00:44:41,520
Speaker 1: that decision. But don't buy a house because that's what

960
00:44:41,560 --> 00:44:43,319
Speaker 1: everyone else is doing or because that's what you've been

961
00:44:43,360 --> 00:44:45,600
Speaker 1: told is the right move. All right, man, let's wrap

962
00:44:45,640 --> 00:44:47,680
Speaker 1: it up. Our home on the web is how Some

963
00:44:47,760 --> 00:44:50,200
Speaker 1: Money dot Com. We'll have some show notes up there

964
00:44:50,280 --> 00:44:53,000
Speaker 1: for you. Thanks everyone for listening. Best Friends Out, best

965
00:44:53,000 --> 00:45:00,120
Speaker 1: Friends Out. M