[Music] well hey you guys so if you live in a rapidly growing area like us here in Nashville then you probably heard your friends debate all kinds of different housing strategies right like get an older home that has good bones no get new construction get the tall you know skinny houses get the Retro ranch style house I mean there's so many options out there and because mortgage rates have been on the higher ends over the last to and because the cost of living keeps going up people are having to compromise what their home wish lists are and this is a really tough discussion I think because priorities and expectations are shifting and setting more into reality of what it looks like today so I want to talk through all the pros and the cons and remind you of the most important things to consider if you are a current or a future homeowner and if you enjoy this Channel and this kinds of content make sure to subscribe only takes a second it helps us out a lot all right first let's talk about when the right time to buy a home is so to get into the housing market financially you want to be in a great place so what does that mean I want you out of debts mhm and I want you to have a fully funded emergency fund of at least 3 to 6 months of expenses so that's really important because what happens is if you are living paycheck to paycheck with a ton of debt and you have no savings and then you go and buy a house and it's probably going to end up being more of a stress point in your life than a blessing so I think it is really important to put yourself in a good financial position and then you can go and buy so when you're out of debt and you have a fully funded emergency fund then I want you to save up at least 5% for a down payment and ideally you would get a 15-year fixed rate mortgage and that your payment is no more than 25% of your take-home pay and that 25% I know is pretty conservative for a lot of people but here's the deal if you're home and this one line item in your budget is taking up you know 40 50 60% of your income you're not going to have a lot left just to live on and to do other things so again within those boundaries is a really great place to be and listen homes are an appreciating assets and they are smart investment over time so I think being a homeowner is key to your overall Financial picture long term and I think it's wise to get into the game when you're ready and if you check the points on what we just talked about I would go ahead and jump in again rates are they're actually kind of coming down a little bit now that we're filming this video um and could continue to go down so I always say date the rate but marry the house so if you are in a position to buy buy but in order to reach that point right to get to this point that you have money saved or that you're getting out of debt you want to take your income that you're making now and let it go as far as possible and the best way to do that is to plan that out plan your spending for the month and that is why I love every dollar every dollar is a great app to help you when it comes to your money and to be intentional with with every dollar hence the name goes of your paycheck and it's completely free so click the link below and you can create a budget just in a couple of minutes all right now that you have an idea of when you might be ready for this step let's chat about the common questions that people have when they're looking at what kind of home to buy so some people say okay should I buy an older home but it's in a better location or should I move outside the city in a you know maybe a new construction some people are even asking oh my gosh are new houses even made to last these days because it just seems like they're going up so fast some people are like well is an older home a poor investment do you get in there to redo it and you find all this other stuff there some people like well should I just go ahead and go super cheap and you know gut the whole thing and do a rehab there or should I go real cheap and buy some cheap just to get into the housing market I mean there are so many questions you guys there are a lot of theories about the right way to invest in real estate but in this housing market it all comes back to supply and demand and so there is still a housing shortage happening there is and that's why prices went up drastically uh during Co and we saw the effects of that a year or two after and honestly that's kind of why they're just staying the same is because there is still a housing shortage so when you look at buying a house again in your four walls is food shelter utilities and transportation so housing is in there and I do think that there is a time to rent I do not think if you're renting you're doing something wrong by any means cuz if you're saving yourself time to get yourself in a financial position then that's great but again if you have the means to go ahead and you're set up to jump into the housing market again that's what I would do because I think long term that's some of the best use of your money now when people need a place to live then companies know that they can build higher volume of homes and people have no choice but to buy them cuz there they are so according to an article that I just saw the average home is 32% more expensive than the average existing home during the same time period and Aesthetics have become a major priority for buyers in the last 15 years with the rise of social media but if new neighborhoods are built in a hurry sometimes you're sacrificing the quality of the house just to get in and if you're spending 32% more then you may not have the margin that you need to make larger repairs down the road so again don't just go buy your house to compete with your high school friend that's on Facebook right you you want to be in a position where you're like okay yeah this is smart and this is wise for the barriers and the boundaries that I have for me and my money so that may mean you know not going and buying a brand new house but I know the hard thing is too people are struggling because a lot of people are staying in their homes longer and so those older homes again aren't up for sale so again I want you to be wise cuz I don't want you to be house poor so if it's not a new construction that's okay and again some of the new construction you may be sacrificing quality as well so be thinking about that all right before we chat about that Airbnb struggle that we're seeing in so many cities I want to tell you about one of our sponsors delete me so you guys scammers are everywhere and because of the internet it seems like our information is out there more and more and these people are very sneaky about scamming you because if they have your information if they have your cell phone number if they have your mailing address I mean they know so much about you so you are so much more likely to fall for a scam so I don't want you to do that I have done that a time or two I'm not going to lie and it costs time it costs money and it is not fun so getting your information removed from the Internet is so so important that's why I use and recommend delete me delete me finds and removes your personal info like your home address your phone number and more from hundreds of data broker websites helping protect you from spammers scammers and online thieves so this is really important you guys I would check it out because again the world today of the internet our information is out there so you want to get it removed so go to join delet me.com Rachel for 20% off that's join delet me.com Rachel all right one common complaint that I hear people talk about is the Monopoly on real estate and popular destinations so vacation homes seem to be snatched up really quickly by investors or hedge funds groups or air B&B flippers and so there's this idea when you go into a touristy City Sometimes some of the real estate there right is gobbled up by these entities and so uh I've heard more and more of people seeing this and complaining about it some states are even putting some regulations around this so again this is an effect I think of housing costs going up but when it comes back to this idea that you can control what you can control that's what's important and so getting yourself in a position to be able to that market into enter the housing market when you can but the this more popular the city you're in the more you're probably going to run into this so in response to this competitive housing market people have started trying to get some Creative Solutions and like anything some of these strategies has some pros and some cons so for example centrally located homes they're convenient but they've usually been there the longest so there may be some imperfections or even paying for some repairs that maybe you don't see that'll be coming up but on the other hand homes outside the city are usually newer but you're going to have more of a commute and it's a little bit uncertain on how well they're made so according to research quoted by realor.com lot sizes between 1990 and 2016 decreased from 8,250 Ft to 6,970 Ft again with supply and demand it's more profitable for Builders to go in and build more homes in a smaller area so um you know I think about Green Hills in the Nashville area area it's a really popular place and people have been building small homes with these big yards and now people are like knocking down the homes and they're buying you know they're building two or three homes or they're building a gigantic house where it used to just be a little house so people are doing what they can to get what they want but we're seeing real estate change so quickly now with all this info with all these opinions circulating around here's what I want you to take away is there may be a place in your heart that you're going to have to compromise so unless you win the lottery or maybe you're an ays to a throne you didn't know existed there's probably going to be some compromise to your wish list and again I think we've gotten more realistic as the years have gone on it was a real gut punch about 18 months ago but I think people that we're now seeing there wasn't a bubble prices are the way they are so now what are we going what are we going to do about it and so again whether it's sacrificing the location if it's sacrificing the type of house that you were thinking about the yard whatever it is you have to know your priorities and you're non-negotiables and then everything else may be up for grabs and that's okay because I also want you to remember your home yes it should be a long-term investment you want to be in it for at least 5 years um you just to get the realized gains and everything but but man you you can move like there is a place that you could look up in a decade from now and be in a different home and that's okay too so I don't want you to wait for the perfect solution because usually there's not going to be you're going to have to sacrifice something and that's okay but I want you to financially be wise about it so again making sure that you're in a place to buy a home wisely like we talked about at the beginning of this episode is so so important so I hope that helps again getting back to this idea that you have the ability to control what you can control and in the housing market and all of this it's a really big decision but I want you to be as informed as possible so if you're thinking about buying a home or even selling a home make sure to check out a Ramsey trusted real estate agent they really take the Ramsey message and use that when it comes to buying or selling your home and they help you stay on the plan so make sure to check them out I'll leave a link below so you can contact a pro near you and make sure to share this episode with a friend who maybe needs a great real estate conversation so if you found this helpful make sure to check out my episode about easy ways to pay off your mortgage early so you can click the link below if you are listening on podcast to make sure to hear that as well all right you guys remember to take control of your money and create a life you love
