We first discussed why you shouldn’t buy a home - now lets discuss why you shouldn’t RENT a home. Enjoy! Add me on Instagram: GPStephan
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Why you SHOULDN’T buy a home: https://www.youtube.com/watch?v=lrVnO9ja07o
First, when you own a home - you won’t EVER have a landlord telling you what to do.
This alone can be a HUGE motivator for people to buy a home rather than rent…because we’ve all seen some really, really crazy landlords.
Secondly, when you own a home, you can do WHATEVER you want!
Want the walls to be painted purple? Go ahead and paint them purple. You want to change the tile in the kitchen? Go ahead and do it. You want to smash the like button for the algorithm? Go ahead and do it.
Third, you won’t ever have to worry about a landlord evicting you or asking you to leave.
If you want the ultimate stability to know you aren’t going to need to move a year from now, buying is the best insurance you have.
Fourth, speaking of that…another HUGE advantage over buying a home is that you won’t have a landlord who’ll raise you rent each year.
That, unfortunately, is one of the biggest unknowns when renting - how much will that same place end up costing you next year, the year after that, and the year after that.
Fifth, The biggest advantage for MOST people, is that having a mortgage FORCES them to save money
In a way, your home is almost like a piggy bank…every month, you’re putting a little money away where it’s safe.
Sixth, In addition to forcing you to save, buying a home also means it’ll LIKELY go up in value over the long term
This is also what’s known as “appreciation”…meaning, the home “appreciates” in value.
Seventh, Another HUGE benefit…speaking of appreciation…is that when you buy a home, you can LEVERAGE your money.
This means that you can own 100% of a property, while only paying a modest down payment - and then borrowing the rest in the form a mortgage. This means you’ll get to keep 100% of those appreciation profits, even though you didn’t put in 100% of your own money.
Eighth…depending on how you file your taxes, your mortgage interest and property taxes an be a tax write off!
Now all of this depends if you take the standard deduction or you itemize…but if you itemize, you can write off the interest you pay up to the first $750,000 of your mortgage. Same goes with property taxes…again, unfortunately, there’s a State and local tax deduction capped at $10,000…but depending on your tax bracket and how much you pay, your property taxes could potentially be another write off - saving your more money.
Ninth…in the event you need access to the money within the property, you can get access to it - ENTIRE TAX FREE - by doing that’s called a Cash out Refinance or a HELOC.
A cash out refinance just means a bank will loan you against the equity that’s already in your house, and you won’t pay any taxes on that money you borrow. N
And FINALLY…if you DO decide to sell the home that you’re living in, you won’t need to pay any taxes on the first $250,000-$500,000 worth of profit.
That’s thanks to a homeowners exclusion that says, if you live in a home for 2 of the last 5 years, you get to keep the first $250,000 tax free if you’re single, or $500,000 if you’re married
Thanks for watching!
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1000): https://act.webull.com/k/Vowbik9Tm5he/main
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Why you SHOULDN’T buy a home: https://www.youtube.com/watch?v=lrVnO9ja07o
First, when you own a home - you won’t EVER have a landlord telling you what to do.
This alone can be a HUGE motivator for people to buy a home rather than rent…because we’ve all seen some really, really crazy landlords.
Secondly, when you own a home, you can do WHATEVER you want!
Want the walls to be painted purple? Go ahead and paint them purple. You want to change the tile in the kitchen? Go ahead and do it. You want to smash the like button for the algorithm? Go ahead and do it.
Third, you won’t ever have to worry about a landlord evicting you or asking you to leave.
If you want the ultimate stability to know you aren’t going to need to move a year from now, buying is the best insurance you have.
Fourth, speaking of that…another HUGE advantage over buying a home is that you won’t have a landlord who’ll raise you rent each year.
That, unfortunately, is one of the biggest unknowns when renting - how much will that same place end up costing you next year, the year after that, and the year after that.
Fifth, The biggest advantage for MOST people, is that having a mortgage FORCES them to save money
In a way, your home is almost like a piggy bank…every month, you’re putting a little money away where it’s safe.
Sixth, In addition to forcing you to save, buying a home also means it’ll LIKELY go up in value over the long term
This is also what’s known as “appreciation”…meaning, the home “appreciates” in value.
Seventh, Another HUGE benefit…speaking of appreciation…is that when you buy a home, you can LEVERAGE your money.
This means that you can own 100% of a property, while only paying a modest down payment - and then borrowing the rest in the form a mortgage. This means you’ll get to keep 100% of those appreciation profits, even though you didn’t put in 100% of your own money.
Eighth…depending on how you file your taxes, your mortgage interest and property taxes an be a tax write off!
Now all of this depends if you take the standard deduction or you itemize…but if you itemize, you can write off the interest you pay up to the first $750,000 of your mortgage. Same goes with property taxes…again, unfortunately, there’s a State and local tax deduction capped at $10,000…but depending on your tax bracket and how much you pay, your property taxes could potentially be another write off - saving your more money.
Ninth…in the event you need access to the money within the property, you can get access to it - ENTIRE TAX FREE - by doing that’s called a Cash out Refinance or a HELOC.
A cash out refinance just means a bank will loan you against the equity that’s already in your house, and you won’t pay any taxes on that money you borrow. N
And FINALLY…if you DO decide to sell the home that you’re living in, you won’t need to pay any taxes on the first $250,000-$500,000 worth of profit.
That’s thanks to a homeowners exclusion that says, if you live in a home for 2 of the last 5 years, you get to keep the first $250,000 tax free if you’re single, or $500,000 if you’re married
Thanks for watching!
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
This is no longer true
You talk too much shut up
So I don't give a f*** I just want to live my life free everything free
Nobody owns nothing in this Earth everybody will go empty handed We come here empty handed we will leave empty handed
Might as well move to India
You shouldn’t be able to rent a home out if you’re the owner, it should be illegal. It brings down the rest of the other homes in that neighborhood if you start renting your house out and devalues the other homes. There should be a law against this!
I watch these videos and wish I understood half of what he is saying 😅
graham does such a great job explaining these concepts like leveraging money, without dumbing it down. thanks graham!!!
Selling our home 🏡 to go into a rental to then use the equity to buy rentals then we will buy ourselves a home later on after we have a few rentals up and running 🏃♂️
Please what do you think about renting a house and then putting the rooms for rent or put the whole house on airbnb?
Dealing with landlords is better than paying property taxes, having to pay for repairs, needing to do repairs yourself or pay someone to do them, being tied to one place, and not having the flexibility to upsize or downsize as needed.
Appreciation doesnt mean anything if you dont sell. Until you sell, your home is only worth more on paper. Not worth it.
renting is a scam from the elite no one need to rent land on this earth we are the only fools made on this earth that pay to live.
Yeah no rent house or else Mr ditkovich will always ask for rent
But what if you can't afford to pay your mortgage
Very weak point
Sometimes you may not have a choice to rent a house. Especially when your actual is at a point where it is not repairable. Sometimes you got to do to make sure you and your family need a home that is safe to live in even if its a house that's up for rent. Something to think about.
Are you looking for a place to spend a holiday with your family or spouse, then Burbank hotel is the best place to be, with comfortable atmosphere and security.
How come no one ever talks about renting a home, and writes off the up to 50%+ rent for S Corp deduction?
Bought a great sized abandoned property for $100k cash. Allowed me to renovate the house the way I wanted. I just turned 35, have a paid off home with a new metal roof, piping, etc and raised that home’s value up to $350k. Plan to stay here until I die so I secured my retirement plan without dipping into my 401k yet.
I had to call into work Friday because the person who lives under me was partying until 6am. They claimed they were asleep at a decent time. My furniture, walls, and windows were shaking because of the noise. The cops didn’t answer the phone when I called. Guess who lives under me? Yeah, big motivator to move and get my own place.
Lets hope your tenants don't see this lol
I wish you where my landlord
Not everybody has the option of buying. Actually the vast majority of people don't
Ha point 10. Capital gain will be taxed heavy.
Being homeless saves the most money am I right?
Doesn’t property tax go up with House appreciation as opposed to inflation.I believe appreciation is about a percent higher on average than inflation
Why would anyone live in the same place for 30 years?
Graham: rents homes
Also Graham: Why you shouldn't rent a home
Honestly, most landlords are leeches. They could not care any less about the person living inside thats paying their mortgage. For a landlord you are just a walking dollar sign. Good landlords are the exception by no means a normality. My advice for anyone is to live with their parents, or many roommates, until you can pay off a home down-payment and hopefylly by then you will be able to pay for that mortgage yourself. But honestly, stay away from landlords, you will never win and they will not think twice to kick you out