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| Name | Buying a Home in 2021 = Financial RUIN? Find out why. |
| Video Uploader | Video From Reventure Consulting |
| Upload Date | This Video Uploaded At 04-07-2021 17:00:12 |
| Video Discription | The US Housing Market has reached record high prices in 2021. Many home buyers and real estate investors, despite feeling priced out of the market, are still trying to buy during the peak of a Bubble. Unfortunately for them historical data shows that buying during the peak is likely a bad idea, and that other assets such as the stock market could offer a better return. Historical home price appreciation in America from 1996 to 2021 measures 3.5% per year on average. Markets such as Charlotte, Atlanta, Philadelphia, and Pittsburgh hover around this average. The best appreciation markets are in the California Bay Area such as San Francisco and San Jose. Most people in America think they will be locking in those San Francisco levels of home price appreciation over the long-term. But Charlotte levels are much more likely. And with only 3.5% per year in annual appreciation the expectation, that creates issues with viewing home ownership as an investment. After deducting for homeownership costs such as Property Taxes, Insurance, Repairs, Maintenance, and HOA fees, owning a home yields little to no profit even considering the appreciation. This indicates that responsible home buyers should view their house as more of store of wealth and place to live compared to an investment. Worse yet - investing in a house yields much lower returns than other asset classes such as the stock market. For instance, the Dow Jones Industrial Average appreciated by 500% from 1996 to 2021. Over the same time frame US home prices went up by 160% - 3x lower. The final issue with buying a home in the 2021 Housing Market is with the negative impact it could have on your career and local economy. My own experiences showed me the value of flexibility and risk-taking, things that align more with renting than owning. Not owning a home allowed me to change careers and increase my earning potential. A recent study by the Federal Reserve Bank confirms this evidence on a more general level, showing that countries with higher homeownership rates have lower levels of economic growth and income. This doesn't mean that buying a home is a bad decision for everyone. Families and those who value space and security will likely derive significant value from homeownership. But others who are younger, single, and more career oriented could suffer negative consequences. Federal Reserve Study https://www.stlouisfed.org/on-the-economy/2018/june/national-homeownership-rates-negative-predictor-recovery Reventure Links Website: https://reventureconsulting.com/ Contact Us: https://reventureconsulting.com/contacts/ Instagram: https://www.instagram.com/reventure_consulting/ DISCLAIMER: This video content is intended only for informational, educational, and entertainment purposes. Your use of Reventure Consulting's YouTube channel and your reliance on any information on the channel is solely at your own risk. Moreover, the use of the Internet (including, but not limited to, YouTube, E-Mail, and Instagram) for communications with Reventure Consulting, LLC does not establish a formal business relationship. 0:00 Buying a Home: GOOD or BAD? 2:07 3% or 10%: What's Long-Term Appreciation? 4:29 Realistic Understanding of Future Growth 6:01 HIDDEN Costs of Homeownership 8:17 Home = Place to Live; NOT an Investment 9:21 Stock Market v. Housing Market 12:04 Why Does Anyone Buy a Home? 13:00 Bad for Career Development? 14:58 Homeownership = Bad for Economy 17:09 I will NOT be Buying Right Now #HousingMarket #HousingBubble #HousingCrash [_IoQa7GBMkE] |
| Category | People & Blogs |
| Tags | Housing Market | US Housing Market | Housing Market Crash | Will the Housing Market Crash? | Will the Stock Market Crash? | Investing in the Stock Market | Housing Market v. Stock Market | Buying a Home in 2021 | Should you buy a home in 2021? | Buying a Home for the First Time | Buying a Home | Housing Market 2021 Forecast | Housing Market Bubble | Housing Market Appreciation | How Much do Home Prices Go Up? | Best Time to a Buy a Home | Buy or Rent in 2021 | Buy or Rent a House | Home Prices |
