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

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Speaker 1: Today we're asking the question, is it a terrible time

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Speaker 1: to buy a home? Yeah, dude, there are a lot

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Speaker 1: of different things going on within the housing market, Like

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Speaker 1: what what a time to be alive? First of all,

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Speaker 1: because I don't know we all like being alive. If

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Speaker 1: I'm thinking specifically of the past two years, man, the

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Speaker 1: past two and a half years that we have experienced,

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Speaker 1: what a time to have a personal finance podcast and

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Speaker 1: be able to just learn about this stuff up close?

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Speaker 1: And uh not only with the stimmy checks way back.

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Speaker 1: Uh so that's when we started our Friday flights, right, Like,

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Speaker 1: what's back when the stimulus checks were hitting and folks

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Speaker 1: were wanting to figure out what am I gonna get mine?

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Speaker 1: What's that going to show up? That was the big question,

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Speaker 1: right Like we were all kind of way, I mean, like,

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Speaker 1: it is money going to really just show up into

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Speaker 1: my account? That kind of thing. But the housing market,

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Speaker 1: that's been another thing that we have seen just on

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Speaker 1: a tear recently, and things are changing. I don't want

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Speaker 1: to be self aggrandizing and make it sound like personal

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Speaker 1: finance podcasts are more important than normal but they're the

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Speaker 1: best out there. But I do think these pasts there's

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Speaker 1: so important a couple of years listening to a personal

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Speaker 1: finance podcast because the facts on the ground are changing

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Speaker 1: so rapidly in so many areas of our lives. When

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Speaker 1: it comes to inflation, when it came to simmy checks,

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Speaker 1: when it comes to it, and never changing housing market.

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Speaker 1: It's like it's more important to get kind of some

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Speaker 1: up to date information and advice. That's what we're here for. Certain,

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Speaker 1: that's the point of the show. It's certainly pertinent. And

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Speaker 1: I guarantee that listeners out there who have found our

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Speaker 1: show in the past couple of years, I guess I

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Speaker 1: can't guarantee you, but but I'm pretty sure they're in

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Speaker 1: a better place now then they would have been. Yeah,

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Speaker 1: that's what I love about what we do here at

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Speaker 1: How the Money. But yeah, we're talking about the housing

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Speaker 1: market during this episode, specifically if right now is a

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Speaker 1: terrible time to buy, and we're going to answer that.

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Speaker 1: Plus we're gonna be able to to guide people through

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Speaker 1: a way of thinking about a home purchase so that

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Speaker 1: they make the right decision for themselves. But first, man,

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Speaker 1: I've got a frugaler cheap for you. You may have

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Speaker 1: noticed during my lunch breaks, I like to get outside.

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Speaker 1: I enjoy eating my lunch out side, seeing the trees

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Speaker 1: here in the birds chirp, and then I I oft.

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Speaker 1: Sometimes I try to go for a walk around the block.

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Speaker 1: And over the past few weeks when i've come back,

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Speaker 1: I've come back with figs. I've offered you a figure too.

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Speaker 1: You're not a fan. My daughter lovesick, she would pick out.

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Speaker 1: Next time I will go, I'll bring a couple back

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Speaker 1: for her and you can take this home. But I

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Speaker 1: am pulling these figs off of a neighbor's tree. So

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Speaker 1: this is I guess neighbor of the family we rent

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Speaker 1: our carriage house from. And this fig tree, it's massive,

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Speaker 1: it kind of hangs out over the sidewalk. And there

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Speaker 1: have been these gorgeous giant figs just right for the picking,

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Speaker 1: and so I have been picking them. So my question

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Speaker 1: to you, am I being frugal or cheap by stealing

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Speaker 1: this person's fruit. That's a really good question. That's a

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Speaker 1: really good question. And maybe I'm wrong here. I think

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Speaker 1: most of them the fruit goes on eaten or it

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Speaker 1: gets eaten by animals. Right, So I think so. My

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Speaker 1: guess is that if it's some sort of giant fig

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Speaker 1: tree that's producing, they produce a ton figs if they're big,

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Speaker 1: that a lot of them are going Uneaton, or maybe

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Speaker 1: even all of them are going Uneaton. So I think

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Speaker 1: if it's like hanging over the street, I don't think

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Speaker 1: it's a big deal to pluck a few. But you know,

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Speaker 1: if you want to knock on the door and say, hey,

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Speaker 1: I'm your neighbor, Matt and so, like the other day,

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Speaker 1: we're starting to walk to school and the quickest way

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Speaker 1: for us to get to the to our kids school

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Speaker 1: is to walk through our backyard and through someone else's backyard.

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Speaker 1: And I was like, this is just gonna save us

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Speaker 1: so much time. But kind of walking down somebody's driveway

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Speaker 1: on the back end to make sure you're above boys. Yeah,

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Speaker 1: so I go knock on the door and they're like,

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Speaker 1: who is this weird guy? And I'm like, I'm a

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Speaker 1: new neighbor. Can we walk into the driveway And they're

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Speaker 1: like of course, And they were cool about it, but yeah,

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Speaker 1: we're I to knock on the door. They I'm guessing

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Speaker 1: they would probably be like of course, yeah. But there's

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Speaker 1: also just like you said, who's this weird guy? There's

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Speaker 1: an element of man. You don't need to ask, just

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Speaker 1: take them, like obviously I'm not eating them. Uh, if

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Speaker 1: there was somebody out there, if there's like an old

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Speaker 1: lady and she's out there, you know, knocking the figs

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Speaker 1: into her, ask it and it looks like she's gonna

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Speaker 1: make a pie or I don't know. That's why I

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Speaker 1: picture making thig pies, which I don't even know if

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Speaker 1: that's a five could be a young man making fig pies, Matt,

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Speaker 1: I will that is true, But I will say a

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Speaker 1: few weeks ago, when they first started turning ripe, I

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Speaker 1: was kind of eyeing them and I wasn't taking more

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Speaker 1: than one fig initially, right, because they slowly begin to ripen.

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Speaker 1: But like a week or two into it, I mean,

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Speaker 1: I'm looking at dozens of ripe figs and I thought, no, literally,

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Speaker 1: nobody is picking these at this point, and I gave

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Speaker 1: myself permission to then start gathering more than one. I'll grab,

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Speaker 1: I'll grab two or three, and it's my it's my

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Speaker 1: fruit serving fortunch. I think you're a bo bored on this.

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Speaker 1: I think it's okay. I'm not gonna judge you keep

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Speaker 1: picking your figs. They're delicious. But I found out about

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Speaker 1: it when and neighbor told me about a pear tree

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Speaker 1: that's kind of on some sort of public property or

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Speaker 1: something that bears a lot of fruit. And so we're

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Speaker 1: gonna run in the snacks and pairs when one of those,

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Speaker 1: one of those they're coming into season now nice, I think,

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Speaker 1: because he had a pear tree in his frint yard

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Speaker 1: and he told us he was and he was like,

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Speaker 1: by on the way, there's one around the corner you

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Speaker 1: should grab. I'm from So so do you know, okay,

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Speaker 1: while we're talking about forging for wild fruit, do you

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Speaker 1: know the trick with pear trees? You will pull that

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Speaker 1: pair and you will take it home and you're like, oh,

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Speaker 1: I'm excited to eat this and you go to bite

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Speaker 1: into it and you're like, oh man, this is not

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Speaker 1: a good on the window. You wait one week. Evidently

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Speaker 1: we learned this from our buddies Tim and he's got

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Speaker 1: a pear tree in his yard and this thing evidently drops.

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Speaker 1: I mean, he made it sound like hundreds of pears.

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Speaker 1: But what you do you you pull them, you gather them.

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Speaker 1: You let him sit around for one week, and after

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Speaker 1: a week they taste like the pairs you buy at

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Speaker 1: the store and you don't eat them right away. So

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Speaker 1: if if you've got one of those pear trees, uh,

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Speaker 1: just give it a second. If it's a fig, if

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Speaker 1: you happen to be walking around you see your right fig,

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Speaker 1: go ahead and grab it and eat it right away.

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Speaker 1: Yeah no, no, you throw caution in the wind. If

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Speaker 1: someone's looking at you, weird, Just to eat that fig anyway, right,

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Speaker 1: get ready to take off, run and supposed to wash

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Speaker 1: him first though, right, Well, yeah, I bring him home

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Speaker 1: and I'm watching him here in this thing. The first time.

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Speaker 1: I was like, I want to see how good these

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Speaker 1: jokers are, and I ate one during my walk I think,

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Speaker 1: here me fine. Yeah, all right, well let's let's mention

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Speaker 1: the beer we're having on this episode, Matt. This one's

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Speaker 1: called Odette and it's by Fair Aisle Brewing. It is

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Speaker 1: like an oak aged beer that food or smells fantastic.

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Speaker 1: So we give our thoughts that the real end of

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Speaker 1: the episode looking forward to this one. But let's move on, Matt.

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Speaker 1: Let's get to the question of hand. We're asking, is

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Speaker 1: it a terrible time to buy a house. And it's

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Speaker 1: been said that timing is everything, right, I mean in

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Speaker 1: in almost everything in life. Your timing matters a great deal. Sometimes,

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Speaker 1: like I don't know, I'm thinking about people who graduated

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Speaker 1: during the Great Recession, and it's like, well, in my

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Speaker 1: degree doesn't feel as useful right now as it might

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Speaker 1: have just a few years ago. I was thinking about

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Speaker 1: the first time that you asked Emily out on a day.

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Speaker 1: That's true, we were ready. She's like, who you you ugly?

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Speaker 1: I don't think so, but you know, over time she

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Speaker 1: got to know me and she was like, he's beautiful

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Speaker 1: on the inside. But a year later, it's like the

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Speaker 1: personality is what kept exactly she kind of came around. Well,

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Speaker 1: something else that made me think of was like NASCAR

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Speaker 1: or Formula One drivers they need like perfect timing in

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Speaker 1: order to make a move to pass their competition. A

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Speaker 1: split second right and ill timed attempt it can it

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Speaker 1: can result in falling further behind in the race, or

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Speaker 1: we're maybe some sort of like awful crash that takes

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Speaker 1: you out of the race completely. Well, the housing market

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Speaker 1: has has kind of been shaking up in a big

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Speaker 1: way as prices have risen substantially and now higher rates

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Speaker 1: are making things even more unaffordable. All the rates have

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Speaker 1: actually come back down to earth just a little bit

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Speaker 1: in recent weeks, but the market feels like it's it's

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Speaker 1: kind of stalled out, heading for a correction. And although Matt,

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Speaker 1: the two of us, you know, you and I would

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Speaker 1: be pretty shocked if the current market oddities ended up

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Speaker 1: in anything resembling the crash of two thousand and eight, like,

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Speaker 1: we don't think it's likely to happen, but the fundamentals

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Speaker 1: are just so different this time around. But there's still

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Speaker 1: a lot of uncertainty when it comes to the housing

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Speaker 1: market right now. And so if if you were making

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Speaker 1: offers last year, you kept missing out, consistently, kept getting

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Speaker 1: out bit because there were thirty nine offers every time

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Speaker 1: you try to buy a house and people paying a

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Speaker 1: hunter more than list price. That's not happening right now.

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Speaker 1: So is now the time for you to finally build

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Speaker 1: to buy that house. That's kind of what we want

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Speaker 1: to discuss in today's episode. That is right, man. Yet,

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Speaker 1: you know it's interesting too that we're talking about timing

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Speaker 1: uh in the housing market today because timing the mark

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Speaker 1: it isn't something that you necessarily hear us talk about

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Speaker 1: it's not something we're in favor of, at least when

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Speaker 1: we're talking about the stock market, right Like, we would

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Speaker 1: prefer to see folks dollar cost average every two weeks

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Speaker 1: for decades and then just leave the results to the

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Speaker 1: overwhelming odds that cares if it's a ten year bowl

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Speaker 1: run or currently in a bear market, it doesn't matter,

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Speaker 1: just keeping keep going. Exactly, you don't have to worry

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Speaker 1: about timing because you're likely going to be just fine.

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Speaker 1: But you know, you don't dollar cost average into a house,

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Speaker 1: and so timing matters a good bit more when you're

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Speaker 1: plunking down tens of thousands of dollars for just the

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Speaker 1: down payment on a house, on the most expensive purchase

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Speaker 1: that you're ever going to make. And so for that reason,

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Speaker 1: I think timing does come into play, uh slightly more

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Speaker 1: than it does when you're talking about investing in the

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Speaker 1: stock market. And so this episode is intended to help

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Speaker 1: you to find some some firm footing as you're considering

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Speaker 1: your next move when it comes to housing. So we'll

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Speaker 1: we'll talk about renting versus buying in general, but we'll

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Speaker 1: also discuss you know, which factors you should be most

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Speaker 1: keenly paying attention to UH in a market that is

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Speaker 1: shifting in a in a big way right now. Yeah,

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Speaker 1: market conditions for housing, they're changing and tappening fast right then.

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Speaker 1: Like I said, uh, mortgage rates have been all across

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Speaker 1: the board going shooting above six percent now back down

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Speaker 1: to the five percent range. And so these ships are

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Speaker 1: happening quickly. Home purchase agreements, when you look at the stats,

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Speaker 1: they've been blowing up left and right there. So a

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Speaker 1: huge majority of contracts that are being entered into are

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Speaker 1: now the buyers are not backing out, more so, way

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Speaker 1: more so than we saw last summer in spring. Uh.

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Speaker 1: And like I said, those those houses, Matt, that we're

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Speaker 1: getting multiple offers, right. I mean when you sold your house,

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Speaker 1: you had a ton of offers, there were a lot

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Speaker 1: of people, there's a lot of interest. I did, yes,

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Speaker 1: and so that was that was a good thing. Now

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Speaker 1: if you were to list that same house, UH, you

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Speaker 1: might get crickets at least for a few days or

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Speaker 1: a week or something like that. It's not nearly not

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Speaker 1: nearly as frothy. But yeah, now these homes are sitting longer.

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Speaker 1: Price cuts are happening with more regularity, and basically things

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Speaker 1: are just mellowing out, and we would say that's actually

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Speaker 1: a good thing, right. Uh. It also creates more certainty

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Speaker 1: though for buyers and for sellers, And so now you

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Speaker 1: might start to wonder, however priced is this home that

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Speaker 1: I'm interested in? Or should I wait until rates go

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Speaker 1: down even more? Or you might be asking if I

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Speaker 1: wait just a bit longer, am I going to get

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Speaker 1: a more significant discount? And we can't answer these questions

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Speaker 1: with perfect accuracy. So much depends on a whole slew

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Speaker 1: of factors, especially given like the wild cards of FED policy.

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Speaker 1: What is going to continue to happen with mortgage rates?

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Speaker 1: And then this specific location where you live, So much

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Speaker 1: of the reality on the ground is going to be

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Speaker 1: determined by things that are out of our control. But

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Speaker 1: we'll do our best to kind of give you an

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Speaker 1: overview of what's happening alongside with our thoughts on on

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Speaker 1: how you should proceed. Uh. If buying house is something

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Speaker 1: that you're still keen on doing, that's right. Yeah, And

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Speaker 1: I'm not going to give away the punchline, but I

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Speaker 1: feel like a part, like a t l d R

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Speaker 1: of this episode is that, like the question the true

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Speaker 1: question though, right asking is do these things even matter?

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Speaker 1: Because we're gonna talk about a host of personal factors

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Speaker 1: that we need to be considering. But you know, even

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Speaker 1: though we are seeing price cuts to homes, housing prices

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Speaker 1: are still through the roof when you when you back

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Speaker 1: out and look at it, you know, they've increased something

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Speaker 1: close to year over year on average. Uh, most counties

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Speaker 1: in Florida, they've been going up at a rate like

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Speaker 1: in the thirties and in the forties, and the median

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Speaker 1: monthly payment has gone up. Although that year over year increase,

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Speaker 1: it's actually finally starting to slow down, uh, due to

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Speaker 1: a combination of rapidly increasing prices and mortgage rates doubling

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Speaker 1: overnight virtually. Like, that's what what has created this new reality.

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Speaker 1: But when home prices go up that much in such

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Speaker 1: a small period of time, it's bound to cause some

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Speaker 1: turbulence in the market. Um. You know, first we saw

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Speaker 1: bidding wars, and now we're seeing folks who are apathetic

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Speaker 1: to the market. A lot of folks have thrown in

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Speaker 1: the towel, they've deleted Zelo from their phones altogether because

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Speaker 1: they have decided that, you know what, it's not time

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Speaker 1: for us to buy a house. Things aren't working out.

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Speaker 1: But what we're saying is to think again, Uh look,

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Speaker 1: look twice, because now actually might be the perfect time

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Speaker 1: depending on a number of factors. For We'll get into

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Speaker 1: all those factors, and man, it makes me think of

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Speaker 1: maybe being like in Atlanta Falcons fan, and how five

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Speaker 1: games into the season you're like, I don't really need

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Speaker 1: to follow the team anymore because they're basically had a

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Speaker 1: playoff contention already, and so you might not realize whether

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Speaker 1: they've gone on like a three win streak or something

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Speaker 1: like that because you stopped watching because they were so

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Speaker 1: bad in the beginning of the season. And that's what

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Speaker 1: happened with a lot of folks when it came to

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Speaker 1: canceled cable. I'm not going to follow them anywhere, right,

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Speaker 1: dang it? Well no, I'm listening on another all the

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Speaker 1: winds and follow on Twitter. But that's just the kind

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Speaker 1: of the reality for a lot of people is as

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Speaker 1: they got priced out of the market, they just kind

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Speaker 1: of tuned it out all together. And like you just mentioned,

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Speaker 1: interest rates, you know, have which were on the rise

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Speaker 1: for for quite a while, impacted the cost of housing

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Speaker 1: in a significant way. Uh, you know, most folks who

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Speaker 1: buy a home, they out a mortgage on that home,

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Speaker 1: and so it's not just the skyrocketing price the house,

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Speaker 1: but it's also the increased costs of financing. And so, yeah,

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Speaker 1: when when the Fed Fund rate goes up by three

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Speaker 1: quarters of a point, here's the thing. A lot of

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Speaker 1: people assume that mortgage rates are gonna skyrocket, but that's

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Speaker 1: not exactly how it works. They don't move in tandem

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Speaker 1: when the Fed moves their rate up, and so the

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Speaker 1: reality is the those rising interest rates impact the economy,

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Speaker 1: and that is what's impacting what happens with mortgage interest rates.

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Speaker 1: So rates have actually gone down in recent weeks, and

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Speaker 1: and that means that you can afford just a bit

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Speaker 1: more house for the same amount of money. Not as much,

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Speaker 1: of course, as when rates were below three percent, obviously,

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Speaker 1: but I feel like we're starting to see a housing

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Speaker 1: market that's got a little more balance to it, uh,

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Speaker 1: less frothy, less apathetic, maybe a bit more of a

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Speaker 1: healthy market in general, that's true. Yeah, it seems like

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Speaker 1: things are resuming some sort of normalcy. But buyers are

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Speaker 1: not the only ones who've been shocked by rapidly increasing

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Speaker 1: housing costs, will actually talk about what's happening to renters

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Speaker 1: and also discuss the most important factors you need to

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Speaker 1: consider before purchasing a home. Will get to all of

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Speaker 1: that right after the break. Alright, best, but let's keep

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Speaker 1: talking about real estate, because do it. It's it's still

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Speaker 1: a hot topic of conversation, even if you're on Zillo

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Speaker 1: for thirty and at the left every day because you

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Speaker 1: got priced out of the market. Well, here's the thing.

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Speaker 1: It's not just that buyers have gotten priced out of

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Speaker 1: the market. Renters have also seen a huge uptick in

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Speaker 1: prices too. There's just been no reprieve for anybody when

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Speaker 1: it comes to housing costs, and rents have kind of

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Speaker 1: actually lagged the housing market in most places. So here's

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Speaker 1: the thing. Even if you have opted to forego a

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Speaker 1: home purchase because it was getting it was getting too pricey,

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Speaker 1: that doesn't necessarily mean that you've avoided the rising cost

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Speaker 1: of housing, right You're still kind of impacted by it

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Speaker 1: in a in a different way. So instead of watching

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Speaker 1: prices rise as you're looking through the apps, you probably

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Speaker 1: just got a rough email from your landlord before your

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Speaker 1: least expired telling you that your your rate is going

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Speaker 1: up something like eight and the difference is largely determined

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Speaker 1: based on where you live. Right. So, for example, the

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Speaker 1: Wall Street Journal had a great article about a bunch

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Speaker 1: of different markets and where rents and home prices have gone.

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Speaker 1: Uh So, in Atlanta, for instance, rents rose about twelve

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Speaker 1: percent last year, while home prices went up by twenty

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Speaker 1: two percent. And that was kind of like similar in

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Speaker 1: markets like Charlotte, Vegas, Austin, and Phoenix, and there were

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Speaker 1: other There were other cities I think, like Miami, where

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Speaker 1: rents went up quite a bit more than housing prices.

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Speaker 1: But you know, while those rising rent prices have been

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Speaker 1: tough for a lot of folks to stomach, home buyers

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Speaker 1: in lots of the country have seen the price tag

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Speaker 1: increase even more. So basically, I don't know, it's just

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Speaker 1: bad news all the way around for anybody cannot escape. Yeah,

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Speaker 1: who's trying to live anywhere? Right, that's right? Besides like

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Speaker 1: a tent in your friend's backyard. Uh and maybe they're

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Speaker 1: asking you to chip in a little bit water for

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Speaker 1: all those outdoor showers. I don't know. And so the

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Speaker 1: question right like, will can rents continue to rise? Well,

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Speaker 1: that's a complicated question, and there are too many factors

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Speaker 1: to weigh in in order to nail down an answer.

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Speaker 1: Because the fires continue to sit on the sidelines opting

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Speaker 1: to not buy a home, it's going to mean more

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Speaker 1: demand for rental units, raising prices. And that demand, like

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Speaker 1: it's already pretty intense, you know. Plus rental units just

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Speaker 1: aren't being built fast enough. But as the housing markets

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Speaker 1: continue this offten and more people are less in their

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Speaker 1: homes for sale, now we could see prices decrease enough

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Speaker 1: that buyers start to get interested again. So much of

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Speaker 1: this hinges on things outside of our control. You know,

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Speaker 1: we certainly don't have a crystal ball. We can't prognosticate,

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Speaker 1: you know, what's going to happen with rents tomorrow or

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Speaker 1: home prices tomorrow, um, especially as we look out even further.

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Speaker 1: I mean, it's harder, it's harder to know, especially like

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Speaker 1: the wild cards that I mentioned, Matt, those are those exist.

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Speaker 1: So what we had talked about a year ago was, hey,

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Speaker 1: the housing market, because of the shortage of homes, is

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Speaker 1: likely to continues to see price increases into the future.

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Speaker 1: But what we weren't factoring in with some of these

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Speaker 1: outside influences that we're gonna that we're gonna come in

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Speaker 1: and change the dynamics of the situation. But let's talk

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Speaker 1: about the kind of the rent verst By conundrum right now,

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Speaker 1: because both buyers and renters are in a tough situation,

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Speaker 1: we'd recommend that you don't overly focus on the market

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Speaker 1: and the numbers. Basically, if you're wondering if now is

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Speaker 1: the right time to buy a place, it's it's just

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Speaker 1: even more important to figure out what you want your

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Speaker 1: life to look like moving forward. So you gotta think

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Speaker 1: about the lifestyle factor, right I mean, owning a home

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Speaker 1: is a time and a money commitment. You're talking about

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Speaker 1: fixing leaky toilets and a whole lot of other not

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Speaker 1: so fun things. They become a part of your life

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Speaker 1: when you own a home. Man, We've got this like

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Speaker 1: toilet that keeps running, and I've got to figure out

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Speaker 1: how to fix this thing. I've kind of checked and

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Speaker 1: it's it's not the flapper you give it the old jiggle.

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Speaker 1: You can sometimes you can running well. I mean it's

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Speaker 1: not just toilets too, right like, because I feel like

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Speaker 1: that's kind of a that's what we think of. But

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Speaker 1: I mean, like Essentially, when you buy a home, like

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Speaker 1: you have to become versed virtually, I think, in all

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Speaker 1: systems of a home, not because you have to be

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Speaker 1: able to know how to do something beyond just the

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Speaker 1: jiggle on the toilet handle, but to know what type

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Speaker 1: of repaired person to call, and to know whether or

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Speaker 1: not they're ripping you off, and to know whether they're

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Speaker 1: doing a good job. Like, these are all things that

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Speaker 1: you have to kind of familiarize yourself with, and that

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Speaker 1: might be up some people's alley where they're like, oh man,

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Speaker 1: that sounds great, Like I already know all the systems.

404
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Speaker 1: I grew up kind of doing that stuff as a teenager.

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Speaker 1: But you also might be saying yourself, I grew up

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Speaker 1: in a in an apartment in the city and never

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Speaker 1: how to do any of that kind of stuff, So

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Speaker 1: I have no clue. These are the kind of things

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Speaker 1: you need to keep in mind. Yeah, homeownership could be

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Speaker 1: more daunting for some people than others, right based on

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Speaker 1: kind of their knowledge level and comfortability level with figuring

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Speaker 1: that stuff out. Plus you know, monthly mortgage payments and

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Speaker 1: and monthly rent amounts. They're just not apples to apples

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Speaker 1: comparisons right, And a lot of people think, well, as

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Speaker 1: long as I'm getting into a house, you got a mortgage,

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Speaker 1: it's less than my rent, I'm coming out ahead. But

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Speaker 1: that's that's truly not the case because of all the

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Speaker 1: expenses that are associated with owning a home, and and

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Speaker 1: despite the popular notion renting is not throwing money away,

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Speaker 1: that is kind of a common perception, especially for people

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Speaker 1: who want to get good with their money. They start

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Speaker 1: to think, well, if I continue to rent a house,

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Speaker 1: then basically what I'm doing is I'm flushing money down

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Speaker 1: the toilet every single month. Well, that's keep going back

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Speaker 1: to toilets. Yes, exactly, but that's just not true at all, right,

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Speaker 1: because you're paying for a physical place to live, for

427
00:18:50,240 --> 00:18:52,679
Speaker 1: a roof of your head, and you're also paying for

428
00:18:52,840 --> 00:18:56,280
Speaker 1: you know, more flexibility, uh, the right to not have

429
00:18:56,359 --> 00:18:59,040
Speaker 1: to fix anything in that house when it goes when

430
00:18:59,040 --> 00:19:01,160
Speaker 1: it goes wrong, except for changing light bulbs and stuff

431
00:19:01,200 --> 00:19:04,160
Speaker 1: like that. You basically or if you broke it right, right,

432
00:19:04,600 --> 00:19:07,720
Speaker 1: but that's gonna that's gonna put that onus, on on

433
00:19:07,800 --> 00:19:10,040
Speaker 1: the landlord. And there's a lot of value in that.

434
00:19:10,160 --> 00:19:12,800
Speaker 1: So we want to make sure that that misconception doesn't

435
00:19:12,840 --> 00:19:15,840
Speaker 1: continue in perpetuity because renting makes sense for a lot

436
00:19:15,840 --> 00:19:18,480
Speaker 1: of people. Yeah, so as you are trying to decide

437
00:19:18,480 --> 00:19:20,600
Speaker 1: if buying a home makes sense for you, it's important

438
00:19:20,640 --> 00:19:23,320
Speaker 1: to remind yourself to that a home is not typically

439
00:19:23,560 --> 00:19:25,600
Speaker 1: a great investment. This kind of goes and intended with

440
00:19:25,640 --> 00:19:27,520
Speaker 1: what you're saying, jel about flushing money down the toilet,

441
00:19:27,560 --> 00:19:30,240
Speaker 1: But like we would suggest that you not think about

442
00:19:31,240 --> 00:19:34,399
Speaker 1: primary residents in those terms as an investment despite the

443
00:19:34,400 --> 00:19:37,280
Speaker 1: fact though that recent history debunks our claim because of

444
00:19:37,320 --> 00:19:40,440
Speaker 1: the past couple of years, that doesn't guarantee that homes

445
00:19:40,440 --> 00:19:42,760
Speaker 1: are going to appreciate this rapidly moving forward. There's like

446
00:19:42,800 --> 00:19:45,040
Speaker 1: no better investment over the past two years than have

447
00:19:45,160 --> 00:19:47,080
Speaker 1: been housing it. But that is not normal. I mean

448
00:19:47,160 --> 00:19:49,600
Speaker 1: people had not expect that, and especially even over the

449
00:19:49,640 --> 00:19:51,199
Speaker 1: past ten of twelve years, Like the stock park has

450
00:19:51,240 --> 00:19:53,200
Speaker 1: been on a tear, but so has the real estate

451
00:19:53,200 --> 00:19:54,680
Speaker 1: mark every Yeah, everything has been on it and so

452
00:19:54,720 --> 00:19:56,440
Speaker 1: you feel like you've missed out. But the reality of

453
00:19:56,480 --> 00:19:59,399
Speaker 1: that that is just not normal and it is highly

454
00:19:59,480 --> 00:20:02,000
Speaker 1: unlikely for to continue at that base. But specifically that

455
00:20:02,040 --> 00:20:04,159
Speaker 1: I mean when you are looking at housing versus just

456
00:20:04,200 --> 00:20:06,440
Speaker 1: say the stock market generally speaking, like when you take

457
00:20:06,440 --> 00:20:09,200
Speaker 1: a longer view of the typical returns, homes return about

458
00:20:09,200 --> 00:20:12,080
Speaker 1: four percent on average, while the stock market is closer

459
00:20:12,119 --> 00:20:14,520
Speaker 1: to ten percent. And so because of that, we want

460
00:20:14,560 --> 00:20:16,560
Speaker 1: you to treat your home as a primarily as a

461
00:20:16,640 --> 00:20:19,080
Speaker 1: place to live, not as an investment. And so if

462
00:20:19,119 --> 00:20:21,840
Speaker 1: renting is going to be a better lifestyle move for

463
00:20:22,000 --> 00:20:24,720
Speaker 1: you, you you might actually be happier and also be able

464
00:20:24,760 --> 00:20:28,680
Speaker 1: to see higher returns from investing passively within the stock market. Yeah,

465
00:20:28,680 --> 00:20:30,679
Speaker 1: that's right. And and you know, by the way, now

466
00:20:30,760 --> 00:20:33,320
Speaker 1: when we talk about the affordability of buying a house

467
00:20:33,359 --> 00:20:35,639
Speaker 1: and we're talking about mortgage rates, we're talking about mortgage

468
00:20:35,720 --> 00:20:39,399
Speaker 1: rates right now in the five percent range. And I

469
00:20:39,400 --> 00:20:41,880
Speaker 1: think a lot of people are like freaking out because

470
00:20:42,440 --> 00:20:44,520
Speaker 1: when you're when you're looking at the past couple of years,

471
00:20:44,760 --> 00:20:47,160
Speaker 1: when you're even looking at the past decade, that's high

472
00:20:47,640 --> 00:20:49,919
Speaker 1: by by those standards, But when you're looking at the

473
00:20:50,040 --> 00:20:54,000
Speaker 1: long arc of mortgage rate history, it's still ridiculously low,

474
00:20:54,200 --> 00:20:56,880
Speaker 1: um near historic lows. To get a five percent rate

475
00:20:56,880 --> 00:20:59,400
Speaker 1: that's locked in number to thirty years. And so it's

476
00:20:59,400 --> 00:21:02,200
Speaker 1: important to out that that it's like, yeah, mortgage rates

477
00:21:02,200 --> 00:21:04,640
Speaker 1: are high. Well, in what context are we talking about high?

478
00:21:04,840 --> 00:21:08,280
Speaker 1: Because in reality they're still pretty reasonable. And here's the thing.

479
00:21:08,400 --> 00:21:10,639
Speaker 1: If you buy a home, you can always refinance at

480
00:21:10,640 --> 00:21:13,359
Speaker 1: a later date if rates do go down. But we

481
00:21:13,400 --> 00:21:15,320
Speaker 1: just don't want you to buy a home with the

482
00:21:15,359 --> 00:21:17,199
Speaker 1: hope that you're gonna be able to write finance in

483
00:21:17,240 --> 00:21:19,400
Speaker 1: the future. Right, with the hope or the expectation buying

484
00:21:19,440 --> 00:21:22,280
Speaker 1: at the extreme edge of what you can afford, saying

485
00:21:22,440 --> 00:21:23,879
Speaker 1: a couple of years from now, pretty sure, I'm going

486
00:21:23,960 --> 00:21:26,360
Speaker 1: to lower that rate and then it'll all be fine

487
00:21:26,359 --> 00:21:29,800
Speaker 1: and dandy. Like that puts you in a precarious financial position. Um,

488
00:21:30,040 --> 00:21:31,680
Speaker 1: but just let that be the icing on the cake

489
00:21:31,840 --> 00:21:33,520
Speaker 1: if it does happen, right, if you're able to a

490
00:21:33,560 --> 00:21:35,159
Speaker 1: nice little bonus, Yeah, you're like, oh cool, now I

491
00:21:35,240 --> 00:21:37,359
Speaker 1: get to lower my rate my monthly payment by a

492
00:21:37,359 --> 00:21:40,120
Speaker 1: couple hundred bucks because I got to refinance as rates

493
00:21:40,119 --> 00:21:42,800
Speaker 1: went back down. But yeah, running the numbers based on

494
00:21:43,000 --> 00:21:45,520
Speaker 1: comps in your specific market is what's going to be

495
00:21:45,520 --> 00:21:47,440
Speaker 1: able to help you decide whether renting or buying is

496
00:21:47,480 --> 00:21:50,760
Speaker 1: a better financial decision for you given the current conditions.

497
00:21:51,080 --> 00:21:53,240
Speaker 1: That's right, Yeah, And aside from whether or not you

498
00:21:53,280 --> 00:21:56,439
Speaker 1: can afford you know, the monthly payments that you might

499
00:21:56,480 --> 00:21:58,280
Speaker 1: get with the mortgage. You need to make sure that

500
00:21:58,320 --> 00:22:00,840
Speaker 1: you have enough cash save up. And you know, we're

501
00:22:00,840 --> 00:22:03,239
Speaker 1: not just talking about money for a down payment here,

502
00:22:03,280 --> 00:22:05,920
Speaker 1: Like we want you to have funds saved for home

503
00:22:06,000 --> 00:22:09,920
Speaker 1: repairs in addition to a nicely stocked emergency fund. And

504
00:22:10,080 --> 00:22:12,600
Speaker 1: you know, I I say this knowing that this sounds

505
00:22:12,600 --> 00:22:14,800
Speaker 1: like a big hurdle, but don't buy a house if

506
00:22:14,800 --> 00:22:16,960
Speaker 1: you haven't been able to save up enough to make

507
00:22:16,960 --> 00:22:19,800
Speaker 1: this happen. It's just gonna put you into precarious of

508
00:22:19,800 --> 00:22:22,280
Speaker 1: a position. And we just don't want you to experience

509
00:22:22,280 --> 00:22:24,680
Speaker 1: that financial that financial stress, because it's a real thing.

510
00:22:24,760 --> 00:22:27,960
Speaker 1: It impacts all areas of your life. Like I've heard

511
00:22:28,000 --> 00:22:31,200
Speaker 1: interviews with folks who fought in Iraq and they've come

512
00:22:31,200 --> 00:22:34,560
Speaker 1: back and they've made poor financial decisions, and they said

513
00:22:34,600 --> 00:22:37,400
Speaker 1: how that was more stressful than actually fighting in the war,

514
00:22:37,480 --> 00:22:39,320
Speaker 1: and and and you think, how in the world is

515
00:22:39,320 --> 00:22:43,000
Speaker 1: that possible. And he was actually talking about how well

516
00:22:43,160 --> 00:22:45,400
Speaker 1: he wasn't trained to deal with this, when when you're

517
00:22:45,400 --> 00:22:47,280
Speaker 1: fighting in a war, when you're in the military, you're

518
00:22:47,280 --> 00:22:50,960
Speaker 1: trained to handle that kind of thing. Months by experts exactly.

519
00:22:51,320 --> 00:22:53,240
Speaker 1: And this this isn't something we're often trained for. And

520
00:22:53,280 --> 00:22:55,960
Speaker 1: we find ourselves in these sticky situations and often times

521
00:22:56,000 --> 00:22:57,760
Speaker 1: we don't feel that we have anywhere to turn to

522
00:22:57,840 --> 00:22:59,520
Speaker 1: and it feels like, you're our lives are about to

523
00:22:59,560 --> 00:23:02,080
Speaker 1: be up ended. Yeah. That's why when when some listeners

524
00:23:02,119 --> 00:23:03,720
Speaker 1: reach out and they're like, I'm I'm scrounging to save

525
00:23:03,800 --> 00:23:05,280
Speaker 1: up three and a half percent to put down on

526
00:23:05,320 --> 00:23:08,200
Speaker 1: this house, typically we'll tell that person you're not ready

527
00:23:08,200 --> 00:23:10,359
Speaker 1: to buy a house. And it's because if you're just

528
00:23:10,520 --> 00:23:12,440
Speaker 1: scrounging up that three and a half percent to put down,

529
00:23:12,720 --> 00:23:14,800
Speaker 1: you haven't saved up money. You don't have any more

530
00:23:14,800 --> 00:23:16,719
Speaker 1: money in the fund, you don't have money in some

531
00:23:16,800 --> 00:23:19,000
Speaker 1: sort of that's it. That's gonna be all your money. Yeah,

532
00:23:19,000 --> 00:23:20,760
Speaker 1: and like where you plink that down, right? You know,

533
00:23:20,880 --> 00:23:24,119
Speaker 1: money in an ally bucket to pay for the thing

534
00:23:24,200 --> 00:23:26,639
Speaker 1: that toilets that are gonna break, or the right I

535
00:23:26,680 --> 00:23:28,399
Speaker 1: got a nick niter in my stove that I need

536
00:23:28,440 --> 00:23:30,960
Speaker 1: to replace soon because it's malfunctioning. Those are the kind

537
00:23:30,960 --> 00:23:33,040
Speaker 1: of things that, like you, you you you have to plan

538
00:23:33,160 --> 00:23:35,879
Speaker 1: for um, you can't know, you don't necessarily know what

539
00:23:36,040 --> 00:23:37,240
Speaker 1: is going to break, but you have to have the

540
00:23:37,280 --> 00:23:38,840
Speaker 1: money on hand to be able to pay for it

541
00:23:38,880 --> 00:23:41,239
Speaker 1: when it does. And you another thing that people need

542
00:23:41,280 --> 00:23:43,200
Speaker 1: to think about when it comes to that conundrum or

543
00:23:43,200 --> 00:23:46,359
Speaker 1: printing versus buying is where their credit scores at. Because

544
00:23:46,760 --> 00:23:48,439
Speaker 1: how healthy your credit score is is going to have

545
00:23:48,480 --> 00:23:51,760
Speaker 1: this direct impact on the affordability of that house because

546
00:23:51,800 --> 00:23:53,639
Speaker 1: it's gonna have an impact on the interest rate that

547
00:23:53,640 --> 00:23:56,840
Speaker 1: you're gonna qualify for, and therefore what's your monthly expense

548
00:23:56,960 --> 00:23:59,600
Speaker 1: is actually going to be. So having a credit score

549
00:23:59,640 --> 00:24:02,639
Speaker 1: that's a up seven uh is kind of a minimum

550
00:24:02,640 --> 00:24:04,359
Speaker 1: goal we want you to aim for, but having a

551
00:24:04,400 --> 00:24:06,600
Speaker 1: score of this at least seven sixty is what we

552
00:24:06,720 --> 00:24:09,280
Speaker 1: prefer to see because that is what's going to qualify

553
00:24:09,320 --> 00:24:11,880
Speaker 1: you for the best terms with basically every lender out there.

554
00:24:12,040 --> 00:24:14,240
Speaker 1: And if you're not sure what your score is, check

555
00:24:14,320 --> 00:24:15,680
Speaker 1: you can check it out for free on a site

556
00:24:15,680 --> 00:24:17,920
Speaker 1: like credit Karma. Will link to that in the show notes,

557
00:24:17,960 --> 00:24:19,600
Speaker 1: but they also give me tips on on how to

558
00:24:19,680 --> 00:24:21,919
Speaker 1: improve your score, which is helped to be like you're

559
00:24:21,920 --> 00:24:24,159
Speaker 1: gonna see minus over here if you just if you

560
00:24:24,200 --> 00:24:26,240
Speaker 1: just tend to this, you're gonna score coach. Yeah, you're

561
00:24:26,240 --> 00:24:28,399
Speaker 1: gonna be able to raise that score, therefore saving you

562
00:24:28,400 --> 00:24:30,440
Speaker 1: in money in the long run. And you can check

563
00:24:30,440 --> 00:24:33,280
Speaker 1: out episode two eight seven for more on our thoughts

564
00:24:33,280 --> 00:24:36,400
Speaker 1: about working towards a solid credit standing. Yeah, the good

565
00:24:36,440 --> 00:24:39,480
Speaker 1: news just for our economy overall, is the fact that

566
00:24:39,640 --> 00:24:42,560
Speaker 1: since the Great Recession, since the housing crisis, like fifteen

567
00:24:42,600 --> 00:24:47,840
Speaker 1: years ago, we've seen the quality of mortgage borrowers increased dramatically.

568
00:24:47,960 --> 00:24:50,639
Speaker 1: So like the credit scores that we're seeing that folks

569
00:24:50,640 --> 00:24:52,600
Speaker 1: are coming to the table with, they are much much

570
00:24:52,640 --> 00:24:54,240
Speaker 1: higher than we used to see I guess, you know,

571
00:24:54,240 --> 00:24:55,879
Speaker 1: at least fifteen years ago. And so that's just I

572
00:24:55,920 --> 00:24:58,639
Speaker 1: don't know, it's a it's a silver lining for for

573
00:24:58,680 --> 00:25:01,600
Speaker 1: folks who are are worried about just all of the

574
00:25:01,600 --> 00:25:04,520
Speaker 1: other sort of market conditions that seem to be changing

575
00:25:04,640 --> 00:25:07,840
Speaker 1: under our feet. And something else too that's worth mentioning.

576
00:25:08,119 --> 00:25:10,359
Speaker 1: When you are considering whether or not you want to

577
00:25:10,400 --> 00:25:12,080
Speaker 1: continue renting or if you want to buy a home,

578
00:25:12,359 --> 00:25:16,040
Speaker 1: oftentimes you'll hear folks talking about taxes, and we basically

579
00:25:16,320 --> 00:25:18,720
Speaker 1: want you to forget about the tax breaks that come

580
00:25:18,760 --> 00:25:21,440
Speaker 1: with owning a home because one reason besides throwing away

581
00:25:21,440 --> 00:25:23,480
Speaker 1: money on rent, that you'll hear as a reason for

582
00:25:23,720 --> 00:25:27,280
Speaker 1: buying instead of renting is for that mortgage interest tax deduction.

583
00:25:27,680 --> 00:25:29,480
Speaker 1: But that's kind of a that's a flawed reason to

584
00:25:29,480 --> 00:25:31,960
Speaker 1: buy a home because in doing so, you're you're letting

585
00:25:32,160 --> 00:25:36,040
Speaker 1: the tax tail wag that home purchasing dog, and so

586
00:25:36,080 --> 00:25:40,160
Speaker 1: buying something solely for tax purposes it sounds smart, sounds sophisticated,

587
00:25:40,280 --> 00:25:43,520
Speaker 1: but it is often not. And secondly, I'm gonna invest

588
00:25:43,560 --> 00:25:45,640
Speaker 1: in that that individual stock because I know it's gonna

589
00:25:45,640 --> 00:25:46,919
Speaker 1: go down and then I can claim losses on my

590
00:25:46,960 --> 00:25:49,680
Speaker 1: tax return. It's like, no, no, you gotta earlier losing

591
00:25:49,720 --> 00:25:52,320
Speaker 1: the overall game. You'd rather make money on your investments

592
00:25:52,359 --> 00:25:54,800
Speaker 1: and then pay taxes on the income. But also because

593
00:25:54,840 --> 00:25:57,400
Speaker 1: of the significant standard deduction that Mox folks are able

594
00:25:57,440 --> 00:26:00,320
Speaker 1: to take, they don't actually receive any tax benefit from

595
00:26:00,320 --> 00:26:03,240
Speaker 1: owning their home with our simplified tax code that we've

596
00:26:03,240 --> 00:26:07,119
Speaker 1: seen over the a few years ago, roughly for an

597
00:26:07,160 --> 00:26:09,960
Speaker 1: individual in twenty six, for for a couple. So talk

598
00:26:10,000 --> 00:26:12,880
Speaker 1: to a tax professional before buying a home and hoping

599
00:26:13,080 --> 00:26:15,560
Speaker 1: that it's gonna significantly reduce your tax burden. Yeah, I

600
00:26:15,560 --> 00:26:19,119
Speaker 1: think it's something like of of folks it's a ridiculous amount, Like,

601
00:26:19,160 --> 00:26:22,680
Speaker 1: don't qualify everybody that everybody should be taking the standard

602
00:26:22,720 --> 00:26:25,000
Speaker 1: deduction because most folks they're not going to come out

603
00:26:25,000 --> 00:26:27,760
Speaker 1: ahead by itemizing. So if you're saying, oh, that's the reason,

604
00:26:27,760 --> 00:26:30,600
Speaker 1: because it's gonna help me all my taxes, the reality

605
00:26:30,720 --> 00:26:33,359
Speaker 1: is it's unlikely unless you're in that ten percent of

606
00:26:33,400 --> 00:26:35,760
Speaker 1: folks who actually will qualify, And you're gonna want to

607
00:26:35,800 --> 00:26:37,840
Speaker 1: make sure you know that before you got for this,

608
00:26:38,080 --> 00:26:40,359
Speaker 1: and and even if even if you do qualify for

609
00:26:40,400 --> 00:26:43,520
Speaker 1: that mortgage interest tax deduction, you know, it might be

610
00:26:43,880 --> 00:26:45,720
Speaker 1: a pittance, it might be a small amount, and it

611
00:26:45,760 --> 00:26:48,800
Speaker 1: doesn't mean that you should tie yourself to the transaction

612
00:26:48,800 --> 00:26:51,840
Speaker 1: costs to the buying of a home just because of

613
00:26:51,920 --> 00:26:54,440
Speaker 1: some sort of you know, small tax benefit. Yeah, yeah,

614
00:26:54,440 --> 00:26:56,879
Speaker 1: exactly mortgage interest deduction. Oh you got an next with

615
00:26:56,920 --> 00:26:59,359
Speaker 1: three or eighty six bucks? Cool, let let me just

616
00:26:59,400 --> 00:27:03,800
Speaker 1: go ahead and just give that directly to the plumber exactly. Yeah.

617
00:27:04,040 --> 00:27:06,160
Speaker 1: Um yeah, that's one I'm still trying to figure out,

618
00:27:06,160 --> 00:27:07,919
Speaker 1: Like why is that? I don't know, it's if it's

619
00:27:07,960 --> 00:27:09,840
Speaker 1: not the flapper and toilets yourself basical. I feel like

620
00:27:09,840 --> 00:27:12,199
Speaker 1: I fixed a bunch of toilets, but two toilets in

621
00:27:12,200 --> 00:27:13,760
Speaker 1: my house are doing this, and this one's got your

622
00:27:13,760 --> 00:27:16,280
Speaker 1: stuff to throw me for a loop. So next time

623
00:27:16,320 --> 00:27:18,120
Speaker 1: I come over for when I baby sit, maybe I'll

624
00:27:18,119 --> 00:27:23,040
Speaker 1: take a peek. Okay, yeah, great, Hopefully, hopefully you'll figure

625
00:27:23,040 --> 00:27:25,080
Speaker 1: it out, and when I can't, we'll keep everybody posted

626
00:27:27,240 --> 00:27:30,040
Speaker 1: toilet saga. Well, that one other thing we need to

627
00:27:30,040 --> 00:27:32,560
Speaker 1: talking about. When you're talking about buying versus renting, so

628
00:27:32,640 --> 00:27:37,240
Speaker 1: much of that decision is so dependent on your timeline.

629
00:27:37,640 --> 00:27:39,640
Speaker 1: Because let's say you're like, yeah, I want to buy

630
00:27:39,640 --> 00:27:41,960
Speaker 1: that at home, but I don't know if I'm committed

631
00:27:41,960 --> 00:27:44,320
Speaker 1: to this city or even to this house for for

632
00:27:44,440 --> 00:27:47,840
Speaker 1: very long. I could see myself you're moving closer to

633
00:27:47,840 --> 00:27:50,440
Speaker 1: my folks or something. You've got a pretty transient job.

634
00:27:50,600 --> 00:27:53,560
Speaker 1: I'm gonna be here for maybe a couple of years. Yeah,

635
00:27:53,920 --> 00:27:56,040
Speaker 1: you likely don't need to be buying it. No. Yes,

636
00:27:56,320 --> 00:27:59,000
Speaker 1: buying a house is typically a bad idea. Granted, a

637
00:27:59,040 --> 00:28:00,720
Speaker 1: lot of people have been the accept into this rule

638
00:28:00,760 --> 00:28:02,639
Speaker 1: over the past couple of years as home prices have

639
00:28:03,119 --> 00:28:06,560
Speaker 1: increased exponentially, But how long you plan to live in

640
00:28:06,560 --> 00:28:08,560
Speaker 1: a house has a massive impact on whether or not

641
00:28:08,600 --> 00:28:10,439
Speaker 1: you should get it makes me think about buying a

642
00:28:10,440 --> 00:28:13,880
Speaker 1: new car because we're mostly against. We don't think it's

643
00:28:13,880 --> 00:28:16,359
Speaker 1: a great idea, at least financially speaking, for most folks

644
00:28:16,359 --> 00:28:18,240
Speaker 1: to buy a new car. There are some exceptions to

645
00:28:18,280 --> 00:28:20,119
Speaker 1: that rule, and one of the things that makes buying

646
00:28:20,160 --> 00:28:23,159
Speaker 1: a new car a less bad deal is if you

647
00:28:23,200 --> 00:28:25,040
Speaker 1: hold onto it for a long time. So if one

648
00:28:25,080 --> 00:28:26,560
Speaker 1: of our listeners says, hey, I really want to buy

649
00:28:26,560 --> 00:28:29,040
Speaker 1: a new car. I like knowing what i'm owning. I

650
00:28:29,040 --> 00:28:31,760
Speaker 1: don't want to buy somebody else's problems, but I only

651
00:28:31,760 --> 00:28:33,760
Speaker 1: want to own that car for two years, we would say, no,

652
00:28:34,320 --> 00:28:36,560
Speaker 1: don't do it. That's a terrible idea. But if they said, hey,

653
00:28:36,560 --> 00:28:39,360
Speaker 1: I'm down to own this car for twelve or fifteen years.

654
00:28:39,400 --> 00:28:41,560
Speaker 1: I want to own it for the long haul. Uh,

655
00:28:41,560 --> 00:28:43,360
Speaker 1: and I've got the cash to pay for it, we

656
00:28:43,400 --> 00:28:46,280
Speaker 1: would say, great, it's not actually that bad of a move.

657
00:28:46,600 --> 00:28:49,720
Speaker 1: So much of it depends on your specific circumstances, but

658
00:28:49,840 --> 00:28:52,240
Speaker 1: also on your timeline. And so if you're looking to

659
00:28:52,360 --> 00:28:55,000
Speaker 1: buy a home, you want to make sure, especially when

660
00:28:55,000 --> 00:28:57,840
Speaker 1: we're talking about housing prices doing what they've done over

661
00:28:57,880 --> 00:29:00,080
Speaker 1: the past couple of years, you want to have an

662
00:29:00,120 --> 00:29:02,920
Speaker 1: even longer timeline of ownership in order to make sure

663
00:29:03,320 --> 00:29:06,280
Speaker 1: that you're not screwing up in this major purchase. We

664
00:29:06,280 --> 00:29:08,600
Speaker 1: would say it's suggest a minimum minimum of five years,

665
00:29:08,600 --> 00:29:10,120
Speaker 1: but more likely something like a seven to ten of

666
00:29:10,160 --> 00:29:12,120
Speaker 1: year timeline where you're gonna want to own that home

667
00:29:12,160 --> 00:29:14,440
Speaker 1: to make sure it's not some sort of big financial mistake.

668
00:29:14,680 --> 00:29:16,520
Speaker 1: You want to be able to depreciate those costs over

669
00:29:16,640 --> 00:29:18,520
Speaker 1: a longer period of period of time, because you can

670
00:29:18,560 --> 00:29:20,480
Speaker 1: take any smart home purchase and if you sell it

671
00:29:20,520 --> 00:29:22,640
Speaker 1: a year later, it's gonna look like a dumb purchase

672
00:29:22,720 --> 00:29:26,520
Speaker 1: because you're not able to escape these like fixed costs

673
00:29:26,640 --> 00:29:29,680
Speaker 1: of real tor fees, of closing costs. And that's not

674
00:29:29,720 --> 00:29:32,800
Speaker 1: even taken into account fluctuations in the market. That's assuming

675
00:29:32,840 --> 00:29:34,800
Speaker 1: that things go up a little bit and maybe you

676
00:29:34,840 --> 00:29:37,200
Speaker 1: are able to pocket some of that equity. But what

677
00:29:37,240 --> 00:29:39,640
Speaker 1: if things go down, then you truly are going to

678
00:29:39,720 --> 00:29:42,080
Speaker 1: be in a hole. Bringing tens of thousands of dollars

679
00:29:42,080 --> 00:29:44,720
Speaker 1: to the closing table is no fun, and you know

680
00:29:44,760 --> 00:29:46,600
Speaker 1: that could be the reality if you buy a house

681
00:29:46,720 --> 00:29:49,320
Speaker 1: right now and try to sell next year. Exactly. Yeah,

682
00:29:49,320 --> 00:29:51,400
Speaker 1: But even though like it might sound like we're trying

683
00:29:51,400 --> 00:29:53,680
Speaker 1: to talk you out of buying a home. We're still

684
00:29:53,720 --> 00:29:57,280
Speaker 1: actually bullish on the future of the housing market because like,

685
00:29:57,280 --> 00:30:00,480
Speaker 1: like there is a housing shortage that won't get fixed overnight.

686
00:30:00,880 --> 00:30:04,120
Speaker 1: We're talking about being millions of units short, which does

687
00:30:04,160 --> 00:30:06,600
Speaker 1: impact some cities more than others. But there just is

688
00:30:06,640 --> 00:30:09,480
Speaker 1: not enough construction to keep up with the population growth.

689
00:30:09,680 --> 00:30:11,920
Speaker 1: It's not keeping up with with income growth, is not

690
00:30:12,040 --> 00:30:14,680
Speaker 1: keeping up with household formation. That are just a slew

691
00:30:14,680 --> 00:30:17,800
Speaker 1: of factors that are contributing to that reality. Uh, like

692
00:30:17,800 --> 00:30:20,880
Speaker 1: like district zoning laws. There's folks who don't want to

693
00:30:20,920 --> 00:30:23,880
Speaker 1: see density in their backyard. There's all the all the

694
00:30:23,960 --> 00:30:27,640
Speaker 1: nimbiism out there that's happening. So basically, the housing shortage,

695
00:30:27,680 --> 00:30:29,760
Speaker 1: it remains and it's going to impact buyers for years

696
00:30:29,760 --> 00:30:32,680
Speaker 1: to come, even though we're currently going through a bit

697
00:30:32,680 --> 00:30:35,240
Speaker 1: of a market shock right now because of the higher

698
00:30:35,240 --> 00:30:38,520
Speaker 1: prices that we just talked about and so all that.

699
00:30:38,600 --> 00:30:39,720
Speaker 1: I just wanted to put that out there as well,

700
00:30:39,720 --> 00:30:42,120
Speaker 1: because we're kind of talking about, Oh, you probably shouldn't

701
00:30:42,120 --> 00:30:45,040
Speaker 1: be buying a home if you consider how you should

702
00:30:45,080 --> 00:30:47,040
Speaker 1: be looking at your home not as an investment, but

703
00:30:47,080 --> 00:30:49,320
Speaker 1: instead as a place to live. Oh, you probably shouldn't

704
00:30:49,360 --> 00:30:52,120
Speaker 1: be purchasing because, oh, your credit score is not all

705
00:30:52,160 --> 00:30:54,320
Speaker 1: that great. We're like, we went through all these different factors.

706
00:30:54,720 --> 00:30:56,560
Speaker 1: But that being said, like we still think that the

707
00:30:56,600 --> 00:30:59,320
Speaker 1: market over the long haul, over the long term is

708
00:30:59,400 --> 00:31:01,720
Speaker 1: going to be higher a couple of years from now

709
00:31:01,760 --> 00:31:03,280
Speaker 1: than it is right now. It makes me think about

710
00:31:03,280 --> 00:31:06,320
Speaker 1: an article I read recently about Pokemon cards, and apparently,

711
00:31:06,320 --> 00:31:08,240
Speaker 1: you know, some people were making just massive amounts of

712
00:31:08,280 --> 00:31:11,280
Speaker 1: dollars on these rare Pokemon cards. And what did the

713
00:31:11,280 --> 00:31:13,560
Speaker 1: people who created the Pokemon cards do. They printed more

714
00:31:13,600 --> 00:31:15,760
Speaker 1: of those cards, and they actually they devalue that market.

715
00:31:16,000 --> 00:31:18,160
Speaker 1: And to some of those people who are selling the

716
00:31:18,160 --> 00:31:21,480
Speaker 1: cards on eBay, were pretty bombs. But for other people

717
00:31:21,520 --> 00:31:24,080
Speaker 1: who just like are enthusiastic about Pokemon cards, they were happy.

718
00:31:24,240 --> 00:31:27,600
Speaker 1: Here's the thing, uh, the housing correction. We can't build

719
00:31:27,680 --> 00:31:30,000
Speaker 1: enough units quickly enough. It's not like Pokemon where they

720
00:31:30,000 --> 00:31:32,600
Speaker 1: can just like turn on the printers and just like,

721
00:31:32,920 --> 00:31:36,600
Speaker 1: uh create the thrust uh two times or three times

722
00:31:36,600 --> 00:31:39,520
Speaker 1: the amount of Pokemon cards out into the world. Like,

723
00:31:39,640 --> 00:31:41,360
Speaker 1: that's not how it works with housing. We are still

724
00:31:41,480 --> 00:31:43,920
Speaker 1: millions of units short, and that shortage is likely to

725
00:31:43,960 --> 00:31:46,240
Speaker 1: continue for for a while. So I agree, man, I

726
00:31:46,240 --> 00:31:48,880
Speaker 1: think the housing market is going to continue to appreciate

727
00:31:48,960 --> 00:31:50,880
Speaker 1: over time. You just can't expect it to look like

728
00:31:50,880 --> 00:31:52,920
Speaker 1: it's looked over the past couple of years. But regardless

729
00:31:52,920 --> 00:31:55,120
Speaker 1: of where that leaves you, you're probably wondering, well, what

730
00:31:55,120 --> 00:31:57,680
Speaker 1: do I do now I'm thinking about continuing to rent

731
00:31:57,760 --> 00:32:01,160
Speaker 1: or I'm thinking about actually purchasing a home. We are

732
00:32:01,160 --> 00:32:03,360
Speaker 1: actually going to run through a number of things that

733
00:32:03,400 --> 00:32:05,720
Speaker 1: you should be thinking through if you are in either

734
00:32:05,760 --> 00:32:07,680
Speaker 1: one of those positions, and we'll get to that right

735
00:32:07,720 --> 00:32:19,560
Speaker 1: after this. All right, let's keep talking about buying house

736
00:32:19,560 --> 00:32:21,160
Speaker 1: some kind of the current market. How that kind of

737
00:32:21,360 --> 00:32:24,200
Speaker 1: changes the equation for a lot of people right as

738
00:32:24,280 --> 00:32:27,320
Speaker 1: the price just skyrockets, it just it's just priced a

739
00:32:27,320 --> 00:32:29,320
Speaker 1: lot of people out of the market who did want

740
00:32:29,360 --> 00:32:31,120
Speaker 1: to buy a home. Although we're starting to see a

741
00:32:31,120 --> 00:32:34,240
Speaker 1: correction that that could improve the likelihood that some of

742
00:32:34,240 --> 00:32:36,680
Speaker 1: those people who weren't able to buy a home a

743
00:32:36,720 --> 00:32:39,440
Speaker 1: few months ago might be able to now. But um,

744
00:32:39,440 --> 00:32:41,880
Speaker 1: we're gonna give our tips for for buyers. What are

745
00:32:41,920 --> 00:32:43,560
Speaker 1: the next steps you need to do in order to

746
00:32:43,640 --> 00:32:45,640
Speaker 1: buy a home in this market? We'll talk about that

747
00:32:45,680 --> 00:32:47,240
Speaker 1: in just a second. But first let's let's talk to

748
00:32:47,240 --> 00:32:50,360
Speaker 1: the renters for just a second, Matt, because uh, maybe

749
00:32:50,440 --> 00:32:53,760
Speaker 1: after running through all those factors, some of our listeners said, Okay,

750
00:32:53,760 --> 00:32:56,000
Speaker 1: wait a second, and buying a home isn't for me.

751
00:32:56,080 --> 00:32:58,640
Speaker 1: It's not just this crazy market. But maybe yeah, maybe

752
00:32:58,680 --> 00:33:00,600
Speaker 1: I can looking at the disparity in my market, I

753
00:33:00,600 --> 00:33:03,280
Speaker 1: can save hundreds and hundreds of dollars a month renting

754
00:33:03,480 --> 00:33:04,720
Speaker 1: and then I don't have to put up with all

755
00:33:04,720 --> 00:33:07,840
Speaker 1: the bogus toilet up and nonsense that Jolande to put

756
00:33:07,920 --> 00:33:09,680
Speaker 1: up with. Maybe it's more of a lifestyle thing. Maybe

757
00:33:09,720 --> 00:33:11,160
Speaker 1: as they thought through what they're thinking, I just don't

758
00:33:11,200 --> 00:33:12,520
Speaker 1: want to deal with that. I like, I want like

759
00:33:12,560 --> 00:33:14,640
Speaker 1: you said, you're you touched on the flexibility and the

760
00:33:14,960 --> 00:33:17,360
Speaker 1: just the lifestyle that that allows you. Maybe I want

761
00:33:17,440 --> 00:33:20,200
Speaker 1: to have my options open if that's the case you

762
00:33:20,240 --> 00:33:21,920
Speaker 1: want to rent. Or maybe they said, I don't have

763
00:33:22,560 --> 00:33:24,360
Speaker 1: enough of a down payment even to really put the

764
00:33:24,360 --> 00:33:27,320
Speaker 1: storm radar or by credit score stinks like those are

765
00:33:27,480 --> 00:33:29,760
Speaker 1: those are good things that you can be working on. Uh,

766
00:33:29,920 --> 00:33:31,800
Speaker 1: if you're interested in buying a home in the future.

767
00:33:32,080 --> 00:33:34,120
Speaker 1: But there is no shame in waiting, and so let's

768
00:33:34,120 --> 00:33:36,720
Speaker 1: see if we can provide maybe those listeners with some

769
00:33:36,760 --> 00:33:39,240
Speaker 1: tips to help cut their current rent down to size.

770
00:33:39,600 --> 00:33:41,960
Speaker 1: And the first step we'd encourage folks to take is

771
00:33:42,000 --> 00:33:45,160
Speaker 1: to attempt to negotiate their rent. We don't want you

772
00:33:45,240 --> 00:33:47,800
Speaker 1: to take a rent increase lying down. We would say,

773
00:33:47,840 --> 00:33:50,280
Speaker 1: knowing the market where you live helps you know whether

774
00:33:50,320 --> 00:33:52,320
Speaker 1: you should chop the open market or whether you should

775
00:33:52,320 --> 00:33:54,640
Speaker 1: push back in a friendly way in order to to

776
00:33:54,880 --> 00:33:57,840
Speaker 1: seek to garner a lower monthly rent amount. And if

777
00:33:57,880 --> 00:33:59,960
Speaker 1: you want kind of just in depth tips on that,

778
00:34:00,120 --> 00:34:03,360
Speaker 1: we actually interviewed an expert Justin Pogue back in episode

779
00:34:03,360 --> 00:34:06,800
Speaker 1: four sixty nine. But there are a ton of levers

780
00:34:06,840 --> 00:34:09,520
Speaker 1: that you can pull used to your advantage to make

781
00:34:09,560 --> 00:34:11,640
Speaker 1: sure that you are not getting hit in the chin

782
00:34:11,800 --> 00:34:14,239
Speaker 1: with an exorbitant rent and increase. There are ways for

783
00:34:14,239 --> 00:34:17,360
Speaker 1: you to push back and lessen it or maybe just

784
00:34:17,640 --> 00:34:20,359
Speaker 1: eliminate it altogether. Sure, Yeah, I mean, and real quick,

785
00:34:20,400 --> 00:34:21,879
Speaker 1: I'll say, like, I think one of the best things

786
00:34:21,920 --> 00:34:23,759
Speaker 1: you could do is just be honest. Right if you

787
00:34:23,880 --> 00:34:27,120
Speaker 1: see uh one of those rent increased emails showing up,

788
00:34:27,160 --> 00:34:29,839
Speaker 1: I think just sharing and being honest and saying, hey,

789
00:34:29,880 --> 00:34:32,080
Speaker 1: this is gonna impact me in a pretty serious way

790
00:34:32,120 --> 00:34:34,600
Speaker 1: this is going to impact my ability to continue living here.

791
00:34:35,280 --> 00:34:37,480
Speaker 1: Is there any way that we could maybe meet in

792
00:34:37,480 --> 00:34:39,640
Speaker 1: the middle, or even better yet, is there a way

793
00:34:39,680 --> 00:34:42,280
Speaker 1: that maybe we can keep it where it was? Maybe

794
00:34:42,320 --> 00:34:43,880
Speaker 1: I know, you hire a law service. What if I

795
00:34:43,880 --> 00:34:45,600
Speaker 1: start mowing the law I'll see That's that's where that

796
00:34:45,640 --> 00:34:47,640
Speaker 1: creativity kicks in. What if we sign into your least

797
00:34:47,680 --> 00:34:50,239
Speaker 1: like maybe that gives that that landlord a little more

798
00:34:50,239 --> 00:34:53,000
Speaker 1: peace of mind that they're not gonna experience any vacancy.

799
00:34:53,239 --> 00:34:55,239
Speaker 1: Maybe it's a win win if you are able to

800
00:34:55,320 --> 00:34:58,640
Speaker 1: make life easier for your landlord. Coming from two landlords,

801
00:34:58,880 --> 00:35:02,640
Speaker 1: we will seriously consider that because that's oftentimes when you

802
00:35:02,640 --> 00:35:04,920
Speaker 1: have a renter in a place and they pay on time,

803
00:35:05,160 --> 00:35:07,560
Speaker 1: they're not trashing the place. These are good renters. These

804
00:35:07,560 --> 00:35:08,879
Speaker 1: are the kind of folks who you want to keep

805
00:35:08,880 --> 00:35:11,840
Speaker 1: around for the long haul. And so I guess what

806
00:35:11,840 --> 00:35:13,640
Speaker 1: I'm saying is I don't want you to be afraid

807
00:35:13,680 --> 00:35:17,080
Speaker 1: to start that conversation, because, like we often talk about

808
00:35:17,120 --> 00:35:19,000
Speaker 1: with when it comes to like discounts, the worst somebody

809
00:35:19,000 --> 00:35:22,239
Speaker 1: can say is uh no, thank you, Like I don't

810
00:35:22,280 --> 00:35:24,560
Speaker 1: you know, they shouldn't belittle you. They're not gonna make

811
00:35:24,560 --> 00:35:26,560
Speaker 1: fun of you or anything like that. Hopefully you have

812
00:35:26,640 --> 00:35:29,319
Speaker 1: an upstanding landlord who's gonna treat you fairly, who's gonna

813
00:35:29,320 --> 00:35:32,319
Speaker 1: treat you right. Uh. I think another way to keep

814
00:35:32,360 --> 00:35:34,759
Speaker 1: your rent in check is to find a way to

815
00:35:34,880 --> 00:35:37,040
Speaker 1: share the burden of rent, you know. I think that's

816
00:35:37,080 --> 00:35:40,640
Speaker 1: probably one of the best ways to maybe really get creative.

817
00:35:41,000 --> 00:35:44,600
Speaker 1: And so this means considering a roommate when maybe you've

818
00:35:44,680 --> 00:35:46,640
Speaker 1: not had a roommate in like since college. You know,

819
00:35:46,640 --> 00:35:49,440
Speaker 1: maybe you've had your own place for a number of years. Actually,

820
00:35:49,480 --> 00:35:52,239
Speaker 1: we talked about getting a much older roommate on a

821
00:35:52,280 --> 00:35:55,160
Speaker 1: recent Friday flight. Or maybe, you know, instead of simply

822
00:35:55,200 --> 00:35:57,960
Speaker 1: just resigning your lease or just kind of going to

823
00:35:58,000 --> 00:36:00,319
Speaker 1: the standard apartment complex that everyone else rents, that it

824
00:36:00,320 --> 00:36:02,400
Speaker 1: means knocking on doors of houses that have a carriage

825
00:36:02,400 --> 00:36:04,800
Speaker 1: house that you could possibly rent. Uh. Joel, We we

826
00:36:04,880 --> 00:36:08,200
Speaker 1: kind of got lucky and we through personal connections and friends,

827
00:36:08,400 --> 00:36:11,440
Speaker 1: kind of knew the owners of the house where the

828
00:36:11,480 --> 00:36:14,600
Speaker 1: carriage houses where we are currently recording. But before we

829
00:36:14,640 --> 00:36:16,319
Speaker 1: had this lined up, we started thinking, man, there were

830
00:36:16,320 --> 00:36:19,520
Speaker 1: a lot of carriage houses within that neighborhood. Literally, we

831
00:36:19,520 --> 00:36:21,040
Speaker 1: were going to campass that plane. We were just gonna

832
00:36:21,040 --> 00:36:23,160
Speaker 1: go doin the door and just start knocking, knocking on

833
00:36:23,239 --> 00:36:27,600
Speaker 1: doors and politely, biggest smile ever, introducing ourselves, explaining who

834
00:36:27,600 --> 00:36:30,239
Speaker 1: we are, you know what we're looking for. And I

835
00:36:30,280 --> 00:36:33,160
Speaker 1: can't imagine if there was a homeowner who had a

836
00:36:33,239 --> 00:36:36,319
Speaker 1: vacant space, how would they not want to rent to

837
00:36:36,400 --> 00:36:38,040
Speaker 1: some folks who are going to be able to provide

838
00:36:38,080 --> 00:36:41,000
Speaker 1: them some additional income while at the same time for

839
00:36:41,120 --> 00:36:44,120
Speaker 1: us potentially scoring a deal on our rent. And while

840
00:36:44,120 --> 00:36:46,200
Speaker 1: we're talking about neighborhoods, it's I think it's important to

841
00:36:46,239 --> 00:36:49,520
Speaker 1: reconsider where it is that you're living, reconsider your neighborhood

842
00:36:49,640 --> 00:36:51,759
Speaker 1: because maybe you're not taking advantage of the of the

843
00:36:51,800 --> 00:36:55,239
Speaker 1: popular amenities that your neighborhood offers. Like maybe in a

844
00:36:55,280 --> 00:36:57,680
Speaker 1: previous life, this is something that you took advantage of,

845
00:36:57,719 --> 00:36:59,839
Speaker 1: This is something that you appreciated, but maybe now you've

846
00:36:59,840 --> 00:37:02,120
Speaker 1: got kids and you're not going out to shows like

847
00:37:02,160 --> 00:37:05,040
Speaker 1: you used to back before you got married. Too close

848
00:37:05,080 --> 00:37:06,680
Speaker 1: to home right here, I know, yeah, I mean this

849
00:37:06,760 --> 00:37:09,160
Speaker 1: is literally something we did because the cost of living

850
00:37:09,400 --> 00:37:12,560
Speaker 1: change pretty dramatically when we moved to where we are now.

851
00:37:12,840 --> 00:37:15,080
Speaker 1: I'm not going to say that that was the driving

852
00:37:15,120 --> 00:37:17,759
Speaker 1: force behind our move. But it sure is nice. Yeah, No,

853
00:37:17,840 --> 00:37:20,960
Speaker 1: it's definitely a plus. Right is to save money every month? Yes,

854
00:37:21,160 --> 00:37:24,000
Speaker 1: And I think another last tip to renters is maybe

855
00:37:24,040 --> 00:37:27,560
Speaker 1: think reassess your space because it might mean accepting a smaller,

856
00:37:27,719 --> 00:37:30,680
Speaker 1: lower quality space or living arrangement in order to stock

857
00:37:30,760 --> 00:37:33,719
Speaker 1: more money into your savings account in preparation to buy

858
00:37:33,800 --> 00:37:37,440
Speaker 1: something for the future. And that might sound like a

859
00:37:37,560 --> 00:37:40,080
Speaker 1: jerk thing to say, like, hey, moving to a crappier

860
00:37:40,120 --> 00:37:43,000
Speaker 1: place that's much smaller and rodent infested or something that's

861
00:37:43,000 --> 00:37:45,880
Speaker 1: not what I'm saying covered under the stairs. That's right exactly,

862
00:37:46,120 --> 00:37:49,080
Speaker 1: you can be the next Harry Potter. But it's true

863
00:37:49,160 --> 00:37:53,719
Speaker 1: that sometimes renting something smaller, living in fewer square feet,

864
00:37:53,800 --> 00:37:56,239
Speaker 1: or something that's not quite as fancy, like doesn't have

865
00:37:56,719 --> 00:37:59,080
Speaker 1: the awesome pool and the gym or something like that,

866
00:37:59,160 --> 00:38:01,200
Speaker 1: maybe that you're not even taking advantage of how often

867
00:38:01,239 --> 00:38:03,879
Speaker 1: are you actually using that those things will save you

868
00:38:04,239 --> 00:38:07,480
Speaker 1: money avoiding those things and finding something that's less expensive.

869
00:38:07,560 --> 00:38:09,600
Speaker 1: So we could say that like some extra discomfort to

870
00:38:09,600 --> 00:38:11,800
Speaker 1: be able to reach your goal of homeownership more quickly.

871
00:38:12,120 --> 00:38:15,200
Speaker 1: That's not deprivation, that is short term pain. For long

872
00:38:15,320 --> 00:38:18,160
Speaker 1: term gain. Right. Uh, so do you really need a

873
00:38:18,200 --> 00:38:21,360
Speaker 1: second bedroom? Can you move down to a one bedroom apartment?

874
00:38:21,600 --> 00:38:23,960
Speaker 1: Or how how often are friends and family actually coming

875
00:38:23,960 --> 00:38:26,440
Speaker 1: to stay with you that's why you keep that second bedroom.

876
00:38:26,440 --> 00:38:29,440
Speaker 1: Maybe they could stay in a hotel instead. Maybe you

877
00:38:29,440 --> 00:38:31,759
Speaker 1: don't need the extra square footage that you think you

878
00:38:31,800 --> 00:38:33,920
Speaker 1: need that you're saying you need. So I don't want

879
00:38:33,960 --> 00:38:35,719
Speaker 1: to sound unrealistic or unkind, but I think there are

880
00:38:35,719 --> 00:38:37,560
Speaker 1: a lot of people in those the kind of situations

881
00:38:37,840 --> 00:38:39,799
Speaker 1: where they have more square footage than they need. They

882
00:38:39,800 --> 00:38:43,600
Speaker 1: could save money by downgrading, and that additional savings can

883
00:38:43,640 --> 00:38:46,200
Speaker 1: go a long way towards helping them achieve, you know,

884
00:38:46,239 --> 00:38:48,480
Speaker 1: those bigger goals that they have. That's right, Yeah, reassess

885
00:38:48,520 --> 00:38:51,319
Speaker 1: the amount of square footage that you're paying for. No pain,

886
00:38:51,760 --> 00:38:55,120
Speaker 1: no gain according to Doer's card. Uh, sleep on a

887
00:38:55,160 --> 00:38:57,759
Speaker 1: bedter nails to just I think that just enhances your

888
00:38:57,760 --> 00:38:59,600
Speaker 1: blood flow and makes you better human. The reason we

889
00:38:59,680 --> 00:39:03,120
Speaker 1: wetion this is because we want folks to basically question everything. Well, like,

890
00:39:03,160 --> 00:39:05,000
Speaker 1: we do not want you to get stuck in this rut.

891
00:39:05,040 --> 00:39:07,160
Speaker 1: And just because you've had a place that's that has

892
00:39:07,160 --> 00:39:11,040
Speaker 1: two bedrooms that doesn't necessarily mean you always from henceforth,

893
00:39:11,400 --> 00:39:13,320
Speaker 1: from now until I die, I'm always going to have

894
00:39:13,360 --> 00:39:15,840
Speaker 1: a place that's at least two bedrooms. Big. Maybe you

895
00:39:15,880 --> 00:39:17,960
Speaker 1: do need that bedroom, right, Maybe you're you're working from home,

896
00:39:18,120 --> 00:39:21,480
Speaker 1: you need that home office. Uh, and that space is

897
00:39:21,520 --> 00:39:23,880
Speaker 1: worth every single penny. But we just don't want you

898
00:39:23,880 --> 00:39:26,040
Speaker 1: to get stuck in a rut where you're just making

899
00:39:26,080 --> 00:39:30,400
Speaker 1: these assumptions that things can't change. Everything is a trade off, yeah, exactly,

900
00:39:30,400 --> 00:39:32,279
Speaker 1: and everything's on the table, like like you should be

901
00:39:32,320 --> 00:39:34,800
Speaker 1: able to consider at least you should be able to

902
00:39:34,840 --> 00:39:38,040
Speaker 1: talk about cutting things from your life without it causing

903
00:39:38,360 --> 00:39:41,239
Speaker 1: too much emotional anguish. And I just want to say, like,

904
00:39:41,560 --> 00:39:44,000
Speaker 1: now we we take our own medicine, right, and we

905
00:39:44,080 --> 00:39:45,919
Speaker 1: have in the past where we have we have lived

906
00:39:45,920 --> 00:39:48,319
Speaker 1: in spaces that were somewhat uncomfortable. Or when it comes

907
00:39:48,360 --> 00:39:52,279
Speaker 1: to downsizing becoming a one car family, because yeah, it's

908
00:39:52,280 --> 00:39:54,480
Speaker 1: it's we're still rocking the one car family, even though

909
00:39:54,480 --> 00:39:56,880
Speaker 1: we're out in the burb. It doesn't and it doesn't

910
00:39:56,880 --> 00:40:00,000
Speaker 1: make our lives hopefully we can eas right. It doesn't

911
00:40:00,000 --> 00:40:02,360
Speaker 1: make our lives easier having one car, but it does

912
00:40:02,719 --> 00:40:04,960
Speaker 1: mean we're able to focus more, save more on the

913
00:40:05,000 --> 00:40:07,880
Speaker 1: things that matter. Having one older car allows me a

914
00:40:07,920 --> 00:40:11,040
Speaker 1: lot more financial flexibility, and that's what I care about. Absolutely. Yeah,

915
00:40:11,080 --> 00:40:13,560
Speaker 1: but okay, so again, you know, realize that purchasing at

916
00:40:13,560 --> 00:40:16,560
Speaker 1: home it's a very personal decision. Maybe you're at the

917
00:40:16,560 --> 00:40:18,839
Speaker 1: point though, where you realize that this is the next

918
00:40:18,840 --> 00:40:21,680
Speaker 1: step for you. Uh. If so, that is awesome, Like

919
00:40:21,760 --> 00:40:23,239
Speaker 1: we are so pumped for you. I can't think of

920
00:40:23,280 --> 00:40:27,560
Speaker 1: any other purchase that's gonna positively, hopefully impact your life

921
00:40:28,120 --> 00:40:30,440
Speaker 1: as much as buying a new place. Well, someone in

922
00:40:30,480 --> 00:40:32,719
Speaker 1: our Facebook group recently talking about buying a lemon of

923
00:40:32,760 --> 00:40:34,600
Speaker 1: a house and it just made me really sad, like

924
00:40:34,640 --> 00:40:37,160
Speaker 1: she had a bunch of issues. So again, buying a

925
00:40:37,160 --> 00:40:39,600
Speaker 1: house potentially fraught with peril, like it's it's not the

926
00:40:39,640 --> 00:40:41,680
Speaker 1: easiest thing in the world. You've got to be prepared

927
00:40:41,719 --> 00:40:45,840
Speaker 1: and don't go for the the absolute cheapest inspector home inspector.

928
00:40:46,000 --> 00:40:48,520
Speaker 1: But yeah, that just made me maybe really really sad

929
00:40:48,560 --> 00:40:50,960
Speaker 1: to me, that sucks. But you know, with with that

930
00:40:51,000 --> 00:40:53,239
Speaker 1: in mind, we also want you to hopefully follow a

931
00:40:53,280 --> 00:40:54,960
Speaker 1: few steps so that you don't end up in a

932
00:40:54,960 --> 00:40:57,759
Speaker 1: stressful situation like that. Listener, And so the first thing

933
00:40:57,800 --> 00:40:59,160
Speaker 1: you want to do, though, is to make sure that

934
00:40:59,200 --> 00:41:01,959
Speaker 1: you get your personal fine is in order, because buying

935
00:41:01,960 --> 00:41:05,560
Speaker 1: a home when your finances are in shambles, that's gonna

936
00:41:05,560 --> 00:41:07,319
Speaker 1: be a terrible idea. And so what that means is

937
00:41:07,320 --> 00:41:10,560
Speaker 1: that we do not want you with any high interest

938
00:41:10,640 --> 00:41:13,120
Speaker 1: rate debt. It's a good rule of thumb. And we

939
00:41:13,120 --> 00:41:14,840
Speaker 1: also want to make sure that you've got SETI income.

940
00:41:15,120 --> 00:41:18,320
Speaker 1: I'm thinking about how like, we currently still have roughly

941
00:41:18,480 --> 00:41:21,560
Speaker 1: two job openings for every person who's unemployed. And so

942
00:41:21,640 --> 00:41:23,600
Speaker 1: what that means, generally speaking, is we've seen a lot

943
00:41:23,600 --> 00:41:27,080
Speaker 1: of job turnover. And you yourself, if you're listening to this,

944
00:41:27,160 --> 00:41:29,759
Speaker 1: you might have finding yourself with an employer that you

945
00:41:29,800 --> 00:41:32,640
Speaker 1: haven't been with for that long. And I'm sure you're thinking, oh,

946
00:41:32,640 --> 00:41:35,320
Speaker 1: they would never let me go, But we're that company

947
00:41:35,360 --> 00:41:38,360
Speaker 1: to hit a rough patch. Chances are there, you know,

948
00:41:38,640 --> 00:41:41,160
Speaker 1: last person hired, first person to go. Uh. And so

949
00:41:41,280 --> 00:41:44,440
Speaker 1: even though you might feel like you are in a

950
00:41:44,520 --> 00:41:46,520
Speaker 1: just a really solid position because you've got those checks,

951
00:41:46,520 --> 00:41:48,480
Speaker 1: those checks coming in, but we don't want you to

952
00:41:48,560 --> 00:41:52,879
Speaker 1: feel overconfident with the paycheck that you've only recently been learning. Yeah,

953
00:41:52,880 --> 00:41:54,040
Speaker 1: and one of the things that's gonna put you in

954
00:41:54,080 --> 00:41:56,439
Speaker 1: a stronger position when it comes to buying that house,

955
00:41:56,440 --> 00:41:59,120
Speaker 1: Matt is having more money on hand for down payment.

956
00:41:59,160 --> 00:42:01,640
Speaker 1: So yeah, like you said, paying off the higher interest

957
00:42:01,719 --> 00:42:04,080
Speaker 1: rate debt, not having any credit card debt is the

958
00:42:04,080 --> 00:42:05,680
Speaker 1: best position to be in when it comes to buying

959
00:42:05,680 --> 00:42:07,520
Speaker 1: a home, but then also having a bunch of cash

960
00:42:07,760 --> 00:42:11,279
Speaker 1: in the bank so that you can slap hopefully down

961
00:42:11,680 --> 00:42:14,520
Speaker 1: We talked about down payments before the break, but uh,

962
00:42:14,600 --> 00:42:16,399
Speaker 1: the more money you have on hand to put down,

963
00:42:16,600 --> 00:42:19,040
Speaker 1: the lower your mortgage payment is going to be. That

964
00:42:19,120 --> 00:42:20,640
Speaker 1: is just the reality, and that puts you in a

965
00:42:20,680 --> 00:42:24,160
Speaker 1: better position to be able to actually afford more home

966
00:42:24,239 --> 00:42:26,600
Speaker 1: if that's your goal. But it's something that we're keen on, right.

967
00:42:26,600 --> 00:42:28,080
Speaker 1: We want you to have more skin in the game.

968
00:42:28,400 --> 00:42:30,680
Speaker 1: A bigger down payment typically means you're a more thoughtful

969
00:42:30,800 --> 00:42:34,120
Speaker 1: home buyer. And so if you're wanting to grow the

970
00:42:34,120 --> 00:42:35,759
Speaker 1: money that you have right now in order to save

971
00:42:35,840 --> 00:42:37,959
Speaker 1: up for a down payment, Uh, if you're talking about

972
00:42:38,000 --> 00:42:40,200
Speaker 1: like a shorter term purchase, you're looking to buy in

973
00:42:40,760 --> 00:42:43,000
Speaker 1: the next couple of years, Uh, if you're looking to

974
00:42:43,040 --> 00:42:44,840
Speaker 1: buy in less than a year, A high yield savings

975
00:42:44,840 --> 00:42:46,640
Speaker 1: account is really the only place to put that money

976
00:42:46,800 --> 00:42:49,680
Speaker 1: if you're looking to buy in uh twelve, at least

977
00:42:49,719 --> 00:42:51,719
Speaker 1: a year out from now, I bonds are a good

978
00:42:51,719 --> 00:42:53,359
Speaker 1: place to put it. And if you're looking for something

979
00:42:53,400 --> 00:42:54,799
Speaker 1: like a longer term you're like, I want to buy

980
00:42:54,800 --> 00:42:57,560
Speaker 1: a house in six, seven, eight years, you can actually

981
00:42:57,560 --> 00:42:59,840
Speaker 1: invest some of that money, so good in a broker

982
00:42:59,840 --> 00:43:04,080
Speaker 1: to Yeah, if you are thinking that proactively and intentionally, UM,

983
00:43:04,560 --> 00:43:06,560
Speaker 1: I think that's awesome. Yes, I agree. But that's the thing.

984
00:43:06,600 --> 00:43:09,200
Speaker 1: If you are thinking that long term, you definitely want

985
00:43:09,200 --> 00:43:10,920
Speaker 1: to make sure that money is invested so that's not

986
00:43:10,960 --> 00:43:12,759
Speaker 1: getting eaten a way by infliction, that it's able to

987
00:43:12,800 --> 00:43:16,239
Speaker 1: grow in the market, so you're not losing purchasing power. Yes, right, man.

988
00:43:16,280 --> 00:43:17,960
Speaker 1: You count on that down payment because that is money

989
00:43:17,960 --> 00:43:19,799
Speaker 1: that you already have, that's money in the bank, and

990
00:43:19,840 --> 00:43:22,080
Speaker 1: you can kind of lean back on that to alleviate

991
00:43:22,120 --> 00:43:26,040
Speaker 1: any of the risk of potentially, you know, not necessarily

992
00:43:26,239 --> 00:43:28,800
Speaker 1: continuing continuing to earn the money that you are earning,

993
00:43:28,960 --> 00:43:31,799
Speaker 1: where you're counting on the future those future earnings, uh,

994
00:43:31,840 --> 00:43:34,000
Speaker 1: in order to score the house that you're wanting. Another

995
00:43:34,040 --> 00:43:36,560
Speaker 1: important step when you are looking to buy a home

996
00:43:36,600 --> 00:43:38,480
Speaker 1: is that you gotta set a budget. A good rule

997
00:43:38,480 --> 00:43:41,200
Speaker 1: of thumb is going to be twenty five to thirty

998
00:43:41,840 --> 00:43:44,760
Speaker 1: of your monthly take home. Some folks, in an attempt

999
00:43:44,800 --> 00:43:47,520
Speaker 1: to get in before things get too crazy, have purchased

1000
00:43:47,600 --> 00:43:50,240
Speaker 1: homes that maybe we're a bit more than they could handle.

1001
00:43:50,640 --> 00:43:53,480
Speaker 1: Real estate agents, mortgage brokers, they kind of they love

1002
00:43:53,520 --> 00:43:55,319
Speaker 1: to tell out the recent price surge as as a

1003
00:43:55,360 --> 00:43:59,120
Speaker 1: reason why you should maybe buy a little more than

1004
00:43:59,160 --> 00:44:01,719
Speaker 1: you actually feelfortable with right now in the present moment,

1005
00:44:01,800 --> 00:44:04,080
Speaker 1: Like it's an investment, so it's okay, and it can

1006
00:44:04,120 --> 00:44:06,400
Speaker 1: barely afford this thing, and values are going to go up.

1007
00:44:06,400 --> 00:44:09,040
Speaker 1: I promise it's still you're you're gonna make money over time,

1008
00:44:09,160 --> 00:44:11,279
Speaker 1: even if you are at the outer edge of your

1009
00:44:11,320 --> 00:44:15,239
Speaker 1: affordability comfortability. And obviously these are generalizations, and there are

1010
00:44:15,239 --> 00:44:19,319
Speaker 1: fantastic realtors and lenders out there, but there is a

1011
00:44:19,360 --> 00:44:23,319
Speaker 1: reality that this is something that you might have heard yourself, uh,

1012
00:44:23,400 --> 00:44:25,560
Speaker 1: and that would leave you left in the lurch. Some

1013
00:44:25,640 --> 00:44:28,239
Speaker 1: of that advice is, you know, it's based on recent history, uh,

1014
00:44:28,239 --> 00:44:30,879
Speaker 1: and some of it is self serving. But there are

1015
00:44:30,880 --> 00:44:33,359
Speaker 1: going to be real downsides to dividing off more than

1016
00:44:33,400 --> 00:44:36,359
Speaker 1: you can shoe. If you end up spending more on

1017
00:44:36,400 --> 00:44:39,120
Speaker 1: a home, then you can actually comfortably afford I remember

1018
00:44:39,280 --> 00:44:41,640
Speaker 1: my dad telling me that the first time they bought,

1019
00:44:41,719 --> 00:44:44,480
Speaker 1: when they moved here to the Atlanta area from the

1020
00:44:44,520 --> 00:44:49,000
Speaker 1: Pacific Northwest. Someone at his work, even just a co worker, said,

1021
00:44:49,640 --> 00:44:51,880
Speaker 1: by something that's kind of at the outer edge of

1022
00:44:51,880 --> 00:44:54,239
Speaker 1: what you can afford, because of course you're gonna get

1023
00:44:54,320 --> 00:44:59,200
Speaker 1: like raises and pretty soon that's gonna feel really comfortable

1024
00:44:59,239 --> 00:45:01,000
Speaker 1: and you're gonna be glad add that you don't have

1025
00:45:01,040 --> 00:45:04,200
Speaker 1: to move and upgrade and all that stuff. And I

1026
00:45:04,360 --> 00:45:07,040
Speaker 1: get why someone would say that, but it's terrible advice

1027
00:45:07,200 --> 00:45:09,080
Speaker 1: because what happened to my dad. He got laid off.

1028
00:45:09,440 --> 00:45:12,560
Speaker 1: And when that happens, now, not only is that house

1029
00:45:12,760 --> 00:45:16,480
Speaker 1: unaffordable or barely affordable on that current salary, it's completely

1030
00:45:16,520 --> 00:45:19,200
Speaker 1: unaffordable when you don't have any income coming in. So

1031
00:45:19,320 --> 00:45:21,560
Speaker 1: that's one of those things where a lot of people

1032
00:45:21,560 --> 00:45:23,279
Speaker 1: will tell you that, like, well, clearly it's going to

1033
00:45:23,320 --> 00:45:26,120
Speaker 1: be a good investment. Yeah, that's assuming everything goes perfectly

1034
00:45:26,280 --> 00:45:29,719
Speaker 1: right and then nothing goes wrong. And I've experienced personal life,

1035
00:45:30,120 --> 00:45:33,120
Speaker 1: in your personal life, in the market, in the economy

1036
00:45:33,120 --> 00:45:35,000
Speaker 1: as a whole, because if we actually do turn and

1037
00:45:35,000 --> 00:45:37,359
Speaker 1: go into a recession. Let's say housing prices go down

1038
00:45:37,360 --> 00:45:39,480
Speaker 1: ten percent, you lose your job and you're forced to

1039
00:45:39,480 --> 00:45:41,920
Speaker 1: sell after you bought at the top of the market,

1040
00:45:42,239 --> 00:45:44,360
Speaker 1: and now that you you don't have a job, like

1041
00:45:44,400 --> 00:45:46,440
Speaker 1: you could be in a tough situation. And you know,

1042
00:45:46,480 --> 00:45:47,960
Speaker 1: it's not that a lot of people haven't made a

1043
00:45:47,960 --> 00:45:49,799
Speaker 1: lot of money in the last couple of years. They have.

1044
00:45:50,200 --> 00:45:52,160
Speaker 1: But you also have to make sure you're not taking

1045
00:45:52,200 --> 00:45:54,200
Speaker 1: on more risk, you're not biting off more than you

1046
00:45:54,239 --> 00:45:56,759
Speaker 1: can chew. And and here's the other thing, Matt, you

1047
00:45:56,760 --> 00:45:58,719
Speaker 1: need to make sure you're getting granular with this. I

1048
00:45:58,800 --> 00:46:02,200
Speaker 1: like that you said twenty of your monthly take home pay,

1049
00:46:02,239 --> 00:46:03,719
Speaker 1: And we think that's a really good way for you

1050
00:46:03,800 --> 00:46:06,919
Speaker 1: to think about it, your post tax income. Like you

1051
00:46:06,920 --> 00:46:08,960
Speaker 1: you want to make sure you're budgeting not just on

1052
00:46:09,080 --> 00:46:12,879
Speaker 1: like a certain percentage of my my gross gross pay,

1053
00:46:13,000 --> 00:46:14,600
Speaker 1: Like that's that's not what you want to be looking at.

1054
00:46:14,600 --> 00:46:16,759
Speaker 1: You want to be looking at the granular numbers of

1055
00:46:16,800 --> 00:46:18,520
Speaker 1: your actual budget and what you can afford. And we

1056
00:46:18,520 --> 00:46:21,799
Speaker 1: think of your take on pay is probably the best

1057
00:46:21,840 --> 00:46:23,520
Speaker 1: way to think about that. Yeah, that helps you to

1058
00:46:23,600 --> 00:46:25,239
Speaker 1: kind of cut through the clutter because you're like, well,

1059
00:46:25,239 --> 00:46:26,600
Speaker 1: my boss say is like, I know, I make a

1060
00:46:26,640 --> 00:46:29,320
Speaker 1: hunter in fift K, and so just we can surely

1061
00:46:29,360 --> 00:46:31,960
Speaker 1: we can afford this house. And it's like, well, maybe

1062
00:46:32,120 --> 00:46:34,359
Speaker 1: you are participating in an employer match. Maybe you've got

1063
00:46:34,360 --> 00:46:36,640
Speaker 1: a lot of money going towards retirement. Maybe you've got

1064
00:46:36,719 --> 00:46:38,479
Speaker 1: a lot of money going up, you know, due to tax,

1065
00:46:38,520 --> 00:46:40,440
Speaker 1: which is great, we want you saving money for your future,

1066
00:46:40,480 --> 00:46:42,759
Speaker 1: but that definitely decreases the amount of money that you

1067
00:46:42,800 --> 00:46:44,919
Speaker 1: have on cash, that you have on hand in order

1068
00:46:44,920 --> 00:46:47,600
Speaker 1: to cover your monthly expenses. Right and again, your loan officer,

1069
00:46:47,640 --> 00:46:49,160
Speaker 1: they might approve you for a loan that goes far

1070
00:46:49,200 --> 00:46:51,719
Speaker 1: beyond that number. That doesn't mean it's smart. And so

1071
00:46:51,760 --> 00:46:54,719
Speaker 1: when you're when you're figuring your actual postax income, it's

1072
00:46:54,760 --> 00:46:57,160
Speaker 1: so much easier to know what you can actually afford,

1073
00:46:57,400 --> 00:46:59,360
Speaker 1: you know, whether we're talking about rent or a mortgage.

1074
00:46:59,640 --> 00:47:01,759
Speaker 1: But if you're looking to buy, it's helpful to go

1075
00:47:01,800 --> 00:47:04,280
Speaker 1: ahead and get pre approved, get qualified for a mortgage,

1076
00:47:04,600 --> 00:47:06,680
Speaker 1: and that way you're able to pounce when the time comes.

1077
00:47:06,719 --> 00:47:08,440
Speaker 1: You want to make sure that if you're like I'm

1078
00:47:08,440 --> 00:47:10,279
Speaker 1: ready to buy home, I've got the down payment, I

1079
00:47:10,360 --> 00:47:12,800
Speaker 1: know that I can afford this that you're pre approved

1080
00:47:13,680 --> 00:47:16,160
Speaker 1: in all likelihood with a local mortgage lender or with

1081
00:47:16,320 --> 00:47:19,440
Speaker 1: a credit union, so that you can make solid offers

1082
00:47:19,480 --> 00:47:21,680
Speaker 1: when the home of your dreams kind of comes available

1083
00:47:21,680 --> 00:47:23,799
Speaker 1: on it's right. And the reason too, that you can

1084
00:47:23,880 --> 00:47:27,880
Speaker 1: confidently pounce and purchase a home of your dreams is because, uh,

1085
00:47:27,880 --> 00:47:29,440
Speaker 1: this is kind of like an additional step too, is

1086
00:47:29,480 --> 00:47:31,799
Speaker 1: that you've been searching, You've been researching, you know the

1087
00:47:31,840 --> 00:47:34,080
Speaker 1: market that you you know that you're looking to buy in,

1088
00:47:34,440 --> 00:47:37,200
Speaker 1: not just on Zillo, not just because you have been

1089
00:47:37,239 --> 00:47:40,040
Speaker 1: like zooming in and tapping homes and looking at the

1090
00:47:40,040 --> 00:47:43,160
Speaker 1: price history and all the things that we've all done,

1091
00:47:43,600 --> 00:47:45,960
Speaker 1: but because you are taking it to the streets, like

1092
00:47:46,000 --> 00:47:49,160
Speaker 1: literally you drive through the neighborhood. We've talked about the

1093
00:47:49,160 --> 00:47:51,680
Speaker 1: wave test before, where you wave at people and you

1094
00:47:51,719 --> 00:47:53,880
Speaker 1: see how they were they're like, oh, okay. We've had

1095
00:47:53,960 --> 00:47:56,399
Speaker 1: some pushback, some people didn't like the wave tests the way. Hey,

1096
00:47:56,640 --> 00:47:58,839
Speaker 1: I'm still all for the wave test. And but not

1097
00:47:58,880 --> 00:48:01,320
Speaker 1: just driving through neighborhood, but even walking through a neighborhood

1098
00:48:01,320 --> 00:48:03,920
Speaker 1: and talking to other folks who are out and about

1099
00:48:03,920 --> 00:48:06,520
Speaker 1: walking their dogs. These are always garner a lot of

1100
00:48:06,560 --> 00:48:08,759
Speaker 1: information just by talking to the folks you want to

1101
00:48:08,880 --> 00:48:10,520
Speaker 1: You want to know is like specific streets like the

1102
00:48:10,520 --> 00:48:12,080
Speaker 1: back of your hand, so that when something comes up,

1103
00:48:12,120 --> 00:48:14,680
Speaker 1: you know that, oh you know that that doesn't seem

1104
00:48:14,719 --> 00:48:16,480
Speaker 1: like a great deal, but I know that street and

1105
00:48:16,520 --> 00:48:18,880
Speaker 1: that street is an amazing street. It is that you

1106
00:48:18,920 --> 00:48:20,920
Speaker 1: know that is worth every penny. That's the kind of

1107
00:48:20,920 --> 00:48:24,680
Speaker 1: confidence that you gain from research and knowing a market. Uh,

1108
00:48:24,719 --> 00:48:26,360
Speaker 1: And so that's something you gotta do as well. Like

1109
00:48:26,400 --> 00:48:28,399
Speaker 1: something really small about the house that we moved into

1110
00:48:28,440 --> 00:48:31,520
Speaker 1: recently is that the specific location on the street just

1111
00:48:31,520 --> 00:48:33,759
Speaker 1: means there's a lot less car traffic, Like just a

1112
00:48:33,760 --> 00:48:36,600
Speaker 1: few houses up, there's this intersection where most of the

1113
00:48:36,600 --> 00:48:39,800
Speaker 1: cars turn, and so they turn away from your house exactly.

1114
00:48:39,920 --> 00:48:42,080
Speaker 1: And so it's kind of nice that we could send

1115
00:48:42,080 --> 00:48:44,600
Speaker 1: our kids into the front yard and there's just not

1116
00:48:44,680 --> 00:48:47,640
Speaker 1: really much thought to car traffic going by because there's

1117
00:48:47,760 --> 00:48:49,600
Speaker 1: so very little of it. It's all those like little

1118
00:48:49,640 --> 00:48:51,160
Speaker 1: things that add value to the house that you can't

1119
00:48:51,200 --> 00:48:53,319
Speaker 1: necessarily see you on a Zilla listing. Yeah, So we

1120
00:48:53,360 --> 00:48:55,680
Speaker 1: share all this because it is important to not only

1121
00:48:55,719 --> 00:48:57,960
Speaker 1: to have all your finances in order and not just

1122
00:48:58,000 --> 00:49:00,760
Speaker 1: to sit back on the couch with your phone, dreaming

1123
00:49:00,960 --> 00:49:02,560
Speaker 1: of Oh, I could live in this house, or I

1124
00:49:02,560 --> 00:49:04,800
Speaker 1: could live in this house like everybody does that. That's easy.

1125
00:49:04,920 --> 00:49:07,280
Speaker 1: But do the harder things that are a little more difficult.

1126
00:49:07,280 --> 00:49:08,799
Speaker 1: Do the things that nobody else is doing, because that's

1127
00:49:08,800 --> 00:49:11,120
Speaker 1: what's going to set you apart. You start doing the

1128
00:49:11,120 --> 00:49:13,480
Speaker 1: effort and you're gonna you're gonna have more success when

1129
00:49:13,480 --> 00:49:15,319
Speaker 1: it comes to actually finding the property that you want.

1130
00:49:15,320 --> 00:49:18,319
Speaker 1: You're gonna reap those rewards. And one other thing too.

1131
00:49:18,320 --> 00:49:19,600
Speaker 1: We we we don't want to folks to overdo it on

1132
00:49:19,640 --> 00:49:21,640
Speaker 1: housing costs. You know, as we kind of kind of

1133
00:49:21,719 --> 00:49:24,319
Speaker 1: zoom out, step back here for a minute. If you're

1134
00:49:24,360 --> 00:49:26,200
Speaker 1: spending too much on a house like that is going

1135
00:49:26,239 --> 00:49:29,440
Speaker 1: to prevent you from reaching other important goals in your life.

1136
00:49:29,640 --> 00:49:32,200
Speaker 1: There's a reason that the term house poor exists because

1137
00:49:32,200 --> 00:49:34,400
Speaker 1: that's that's what you are basically, when you are spending

1138
00:49:34,440 --> 00:49:37,080
Speaker 1: too much of your disposable income on housing. It sounds

1139
00:49:37,080 --> 00:49:39,480
Speaker 1: like we're prudish by limiting the amount of money that

1140
00:49:39,480 --> 00:49:41,719
Speaker 1: you're bringing in on a house, but no, we're just

1141
00:49:41,760 --> 00:49:44,000
Speaker 1: trying to help you be be wise and not experience

1142
00:49:44,080 --> 00:49:46,160
Speaker 1: that financial stress and difficulty. We're trying to help you

1143
00:49:46,200 --> 00:49:48,800
Speaker 1: to be thoughtful. And we know that this is easier

1144
00:49:48,840 --> 00:49:51,520
Speaker 1: so than done given the recent surge in housing costs

1145
00:49:51,600 --> 00:49:54,879
Speaker 1: for basically everyone who didn't buy a home three years

1146
00:49:54,880 --> 00:49:57,200
Speaker 1: ago with three plus years ago, I guess. But if

1147
00:49:57,239 --> 00:49:59,480
Speaker 1: you opt to spend a bigger chunk of your take

1148
00:49:59,520 --> 00:50:01,400
Speaker 1: on pay on housing, you're gonna have less for saving,

1149
00:50:01,400 --> 00:50:04,800
Speaker 1: You're gonna have less for investing in other awesome life goals.

1150
00:50:05,040 --> 00:50:07,960
Speaker 1: We've referenced the staff before, but ninety percent of Americans

1151
00:50:08,080 --> 00:50:11,279
Speaker 1: have the vast majority of their wealth tied up within

1152
00:50:11,360 --> 00:50:13,759
Speaker 1: their their home, within their primary residence, which isn't good.

1153
00:50:14,200 --> 00:50:16,520
Speaker 1: You should think about the home equity that you're able

1154
00:50:16,560 --> 00:50:19,120
Speaker 1: to build as icing on top, you know, icing on

1155
00:50:19,160 --> 00:50:21,160
Speaker 1: the cake is it's like a nice little bonus, But

1156
00:50:21,200 --> 00:50:24,280
Speaker 1: the majority of your net worth should come through basically

1157
00:50:24,280 --> 00:50:26,480
Speaker 1: passively investing within the stock market, or at least if

1158
00:50:26,480 --> 00:50:29,680
Speaker 1: you are going to purchase a home, investing within real estate,

1159
00:50:29,719 --> 00:50:33,120
Speaker 1: because you're looking through things through a different filter than

1160
00:50:33,160 --> 00:50:35,719
Speaker 1: you do when you're buying a primary home. Yeah, for sure.

1161
00:50:35,840 --> 00:50:38,000
Speaker 1: And the reality is, Matt that for some people, never

1162
00:50:38,040 --> 00:50:39,680
Speaker 1: buying can also be a good option. For a lot

1163
00:50:39,719 --> 00:50:41,480
Speaker 1: of folks, Yeah, I think that's almost seem as like

1164
00:50:41,480 --> 00:50:43,640
Speaker 1: a slur in our society, where it's like, oh, oh,

1165
00:50:43,719 --> 00:50:45,799
Speaker 1: you're a renter. You're you're looked down upon a little

1166
00:50:45,800 --> 00:50:49,680
Speaker 1: bit in society ridiculous because it's often it's the best

1167
00:50:49,719 --> 00:50:52,239
Speaker 1: lifestyle and financial option for a lot of folks. It's

1168
00:50:52,280 --> 00:50:55,120
Speaker 1: not a bad life like piece. I'm gonna take advantage

1169
00:50:55,120 --> 00:50:57,080
Speaker 1: of the sweet flight deal that I saw down to

1170
00:50:57,120 --> 00:50:59,600
Speaker 1: the Caymans and uh, oh, sorry, you've got to let

1171
00:50:59,600 --> 00:51:02,080
Speaker 1: the HV guy in to fix your furniss right, yeah,

1172
00:51:02,120 --> 00:51:04,520
Speaker 1: you don't have to worry about that. Uh. And ultimately

1173
00:51:04,600 --> 00:51:07,480
Speaker 1: the answer where you land is gonna vary based on

1174
00:51:07,520 --> 00:51:10,560
Speaker 1: a lot of different personal variables. Buying a home is

1175
00:51:10,640 --> 00:51:12,360
Speaker 1: beginning to look a little bit easier at least for

1176
00:51:12,360 --> 00:51:14,400
Speaker 1: a lot of folks then it has looked over the

1177
00:51:14,440 --> 00:51:17,320
Speaker 1: past couple of years. There's less competition out there. Homes

1178
00:51:17,320 --> 00:51:20,279
Speaker 1: are sitting on on zillo longer. Right, you can you

1179
00:51:20,280 --> 00:51:23,000
Speaker 1: can actually get more of an idea of what the

1180
00:51:23,040 --> 00:51:26,799
Speaker 1: pricing should look like because things aren't going overnight. But

1181
00:51:26,840 --> 00:51:29,400
Speaker 1: things have also gotten more expensive, and here's the reality,

1182
00:51:29,400 --> 00:51:32,040
Speaker 1: prices could moderate in the coming months. That's also not

1183
00:51:32,080 --> 00:51:34,560
Speaker 1: a sure thing either, and Ultimately, if if you really

1184
00:51:34,560 --> 00:51:36,160
Speaker 1: want to own that home, and you're doing great with

1185
00:51:36,200 --> 00:51:38,400
Speaker 1: your finances as a whole, you're wanting to own that

1186
00:51:38,440 --> 00:51:40,520
Speaker 1: home for a minimum of five years, in all likelihood,

1187
00:51:41,120 --> 00:51:43,719
Speaker 1: better advice to be able to commit to owning it

1188
00:51:43,760 --> 00:51:45,839
Speaker 1: for at least seven to ten years longer. Yeah, then

1189
00:51:46,120 --> 00:51:48,399
Speaker 1: you know it might make sense. Even if you're unsure

1190
00:51:48,440 --> 00:51:49,719
Speaker 1: of what housing prices are going to do in the

1191
00:51:49,800 --> 00:51:51,799
Speaker 1: next six to twelve months, Well, that matters a whole

1192
00:51:51,840 --> 00:51:56,359
Speaker 1: lot less if your ownership timeline is a little bit longer, exactly. Yeah. Like,

1193
00:51:56,400 --> 00:51:57,839
Speaker 1: in the end, what we want to leave you with

1194
00:51:57,960 --> 00:52:00,239
Speaker 1: is that all of the different headlines that you see,

1195
00:52:00,239 --> 00:52:02,279
Speaker 1: all all of the market conditions, what the FED does,

1196
00:52:02,360 --> 00:52:05,080
Speaker 1: where you know, where mortgage rates are, these are all

1197
00:52:05,120 --> 00:52:08,160
Speaker 1: a little less important than where you are personally, whether

1198
00:52:08,200 --> 00:52:11,319
Speaker 1: it be your own finances or you know, like where

1199
00:52:11,360 --> 00:52:13,000
Speaker 1: your head's at, Like maybe you're just not ready from

1200
00:52:13,000 --> 00:52:15,160
Speaker 1: a mental state to be able to own a home

1201
00:52:15,200 --> 00:52:17,560
Speaker 1: because maybe you're focusing on your career or maybe you're thinking,

1202
00:52:17,680 --> 00:52:19,399
Speaker 1: you know what, I'm pretty sure i'm gonna get married

1203
00:52:19,440 --> 00:52:21,520
Speaker 1: in a couple of years. I'm going to find the one,

1204
00:52:21,640 --> 00:52:23,279
Speaker 1: and I don't think I want to buy a home

1205
00:52:23,640 --> 00:52:25,880
Speaker 1: when there's a chance that my partner might want to

1206
00:52:25,920 --> 00:52:27,640
Speaker 1: move somewhere else. These are other things that you want

1207
00:52:27,640 --> 00:52:30,799
Speaker 1: to keep in mind before you spend a lot of

1208
00:52:30,800 --> 00:52:33,640
Speaker 1: money on the most expensive purchase that most people ever

1209
00:52:33,680 --> 00:52:36,520
Speaker 1: make in their lives. About Joe, Let's shift gears. Let's

1210
00:52:36,520 --> 00:52:38,280
Speaker 1: get back to the beer that you and I enjoyed

1211
00:52:38,360 --> 00:52:41,200
Speaker 1: during this episode. This was an Odelette, which is a

1212
00:52:41,239 --> 00:52:45,080
Speaker 1: food er laggard beer de guard and this is a

1213
00:52:45,080 --> 00:52:48,120
Speaker 1: beer by fair Isle Brewing out of Seattle. What were

1214
00:52:48,120 --> 00:52:50,520
Speaker 1: your thoughts on this, dude? So I wrote down three

1215
00:52:50,520 --> 00:52:54,800
Speaker 1: words to describe it, oky beer, champagne. It's kind of

1216
00:52:54,840 --> 00:52:56,680
Speaker 1: how I think about it. I like some of the

1217
00:52:56,719 --> 00:52:59,399
Speaker 1: okay beer champagne. Please, thank you very much, sir. So good.

1218
00:52:59,440 --> 00:53:01,479
Speaker 1: Like you're at a tail party and they're walking around

1219
00:53:01,520 --> 00:53:04,200
Speaker 1: with bottles of just nice craft beer, right, and this

1220
00:53:04,280 --> 00:53:05,719
Speaker 1: was what That's the kind of party I'm want to

1221
00:53:05,760 --> 00:53:07,759
Speaker 1: go to. That's exactly right. This is what by fair

1222
00:53:07,800 --> 00:53:10,080
Speaker 1: Aisle Brewing is what you said. And to me that

1223
00:53:10,080 --> 00:53:12,719
Speaker 1: I think it's like some sort of Norwegian sweater style.

1224
00:53:12,760 --> 00:53:14,680
Speaker 1: So it's it's like a cozy Norwegian sweater for myself.

1225
00:53:14,680 --> 00:53:16,640
Speaker 1: It's those hand knit sweaters that have like the I

1226
00:53:16,640 --> 00:53:18,680
Speaker 1: don't know, the lions going across. I've got a fair

1227
00:53:18,719 --> 00:53:21,799
Speaker 1: aisle um style like card again or something that I

1228
00:53:21,840 --> 00:53:24,200
Speaker 1: like to wear specifically in the winter when I'm kind

1229
00:53:24,200 --> 00:53:26,280
Speaker 1: of sitting there in my chair reading the book, specifically

1230
00:53:26,360 --> 00:53:29,080
Speaker 1: on Sunday afternoons. That old man by the sea life.

1231
00:53:29,120 --> 00:53:32,120
Speaker 1: That's that's what's for me feeling the higi or whatever

1232
00:53:32,160 --> 00:53:35,640
Speaker 1: they call it. Absolutely, man, I'll say that the like

1233
00:53:35,640 --> 00:53:37,920
Speaker 1: that oakiness, like that's the first thing that you taste.

1234
00:53:37,960 --> 00:53:39,480
Speaker 1: I mean, it's the first thing you smell as well,

1235
00:53:39,520 --> 00:53:42,640
Speaker 1: But I can't like, almost every beer out there that's

1236
00:53:42,680 --> 00:53:45,239
Speaker 1: been aged in wood, aged on oak is going to

1237
00:53:45,360 --> 00:53:47,560
Speaker 1: taste a little bit better. But then you've got those

1238
00:53:47,560 --> 00:53:50,400
Speaker 1: tasty malts that you kind of expect with just a

1239
00:53:50,480 --> 00:53:53,359
Speaker 1: high quality logger. But then sure enough it just dries out,

1240
00:53:53,360 --> 00:53:55,000
Speaker 1: which is you know, that's kind of I guess more

1241
00:53:55,000 --> 00:53:58,040
Speaker 1: of the champagne side of what you're saying. Yeah, man,

1242
00:53:58,120 --> 00:54:00,359
Speaker 1: it's it was really impressive that I think a lot

1243
00:54:00,400 --> 00:54:03,600
Speaker 1: of times with a beer that's got this type of complexity,

1244
00:54:03,640 --> 00:54:06,680
Speaker 1: you expect there to be maybe some more sugars, some

1245
00:54:06,719 --> 00:54:08,640
Speaker 1: more sweetness within the beer. But it just really dried

1246
00:54:08,760 --> 00:54:12,279
Speaker 1: up and it made this a very surprisingly delicious beer

1247
00:54:12,400 --> 00:54:14,520
Speaker 1: to drink here at the tail end of summer. I

1248
00:54:14,520 --> 00:54:17,400
Speaker 1: would highly recommend for anybody who might be interested in

1249
00:54:17,400 --> 00:54:19,200
Speaker 1: what we just talked about to pick up a bottle

1250
00:54:19,239 --> 00:54:22,279
Speaker 1: of Odallett's. And again, this was by Fair Aisle. By

1251
00:54:22,320 --> 00:54:23,560
Speaker 1: the way, this is the first time we've ever had

1252
00:54:23,600 --> 00:54:27,040
Speaker 1: a beer by these guys, so that we are now

1253
00:54:27,040 --> 00:54:29,520
Speaker 1: getting down here in Georgia. But I will look forward

1254
00:54:29,560 --> 00:54:31,319
Speaker 1: to more beers by them in the future, no doubt.

1255
00:54:31,320 --> 00:54:33,520
Speaker 1: All Right, that's gonna do it for this episode, Matt.

1256
00:54:33,680 --> 00:54:36,080
Speaker 1: Folks can find the show notes for this episode up

1257
00:54:36,080 --> 00:54:37,840
Speaker 1: on our website at how to money dot com. So

1258
00:54:37,960 --> 00:54:40,879
Speaker 1: until next time, best Friends Out, Best Friends Out.