Is this a psyops? Is owning a house really a bad deal?

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The most obvious psyop in the history of psyops. Also it has never been more never began for housecels.

My mortgage is $230 a week, I could rent out my house for $400 a week. So it's cheaper for me now to live in my own house rather than renting. The extra money I save from renting goes to crypto or paying off my death pledge.

So what he is saying is kinda correct. Buying a house it isn't the best overall investment but owning is better than renting.

Buying a house it isn't the best overall investment but owning is better than renting.

He's saying the exact opposite - renting is better than owning in most cases.
Easy to see how that's true with 9-10% annual nominal returns for the stock market.

If you didn't buy a house and only bought btc you would be renting.

Buying a home isn't the optimum financial decision you can make. If you can't sit down for awhile and figure it out yourself, then I don't know what to tell you, and maybe it is best for you to buy a house.

A house you live in isn’t an investment. That’s it. Simple as. You’re not making money. Anything you make from appreciation is less than you’d make simply DCAing in stocks. Stocks are better investments than real estste. Simple as.

It's an 20x leveraged long, it's not retarded.

A house you rent isn't an investment, especially if your rent is equal to what your mortgage would have been. You end up paying for someone else's mortgage.

Buying a home isn't the optimum financial decision you can make. If you can't sit down for awhile and figure it out yourself, then I don't know what to tell you, and maybe it is best for you to buy a house.

A house you live in isn’t an investment. That’s it. Simple as. You’re not making money. Anything you make from appreciation is less than you’d make simply DCAing in stocks. Stocks are better investments than real estste. Simple as.

correct
explain to me what opportunity cost is

Bitcoin has a much higher risk than a house though imo

Rent until you can pay in full for the house you want

Thats a bad deal isnt it, your capital is more effective elsewhere, debt over such a long time deprecates while your capital invested appreciates at a faster rate than your mortage rate, ie. you pay 6% over 30 years while your capital makes 8-10% each year

"Stay at home with your parents" you mean, nice try Mr. landlord.

The interest on the mortgage is always lower than the rent would be, the remainder is being stored in the house and can be taken out later. Living in a mortgaged house is better than living in a rented house.
Now opportunity cost is the 5% down payment plus the monthly monthly payments excluding rent that you're making. That's not much money at all.
I paid 12k as a down payment for my flat, and that's also appreciated over time, that's the 12k you say would be better off in bitcoin.

But you have to remember there's also a deposit which has 3 months of rent that you hand the landlord before renting, and they usually keep the deposit these days because they're bad people. That deposit could easily be about half the 5% down payment that you'd pay on your mortgage.

The interest on the mortgage is always lower than the rent would be

That's not true at all

It's been true for me and I've been paying 5 to 6% interest rates in 2023.

When calculating how good renting is, subtract the deposit + refurnishing costs that you're giving to your landlord and probably not getting back, from the mortgage down payment. That tiny amount is left is the lump sum you say is better off in BTC, also subtract those gains from the appreciation of the house which is also pure profit, not much left after that.

Rent is money out of the window, but I guess you might have a tiny amount more to throw into btc per month compared a mortgage payment, however some of the mortgage payment is not interest and is therefore stored in the house which you'll get back, this portion needs to be subtracted from the gains you'd make by throwing extra portion per month into btc.

I bought real-estate in 2013 and my total return is 30x vs my stocks at 5x. Comparing the two is apples and oranges tho cause one is an index vs a single asset, one I have huge cheap leverage on.

I definitely think owning a condo or townhouse with an HOA is rapidly becoming a bad idea at least. Single family homes are ideal, but they don't seem to be budging in price much. I'm finding tons of cheap condos and townhouses going up for sale in my city, but they almost all have a monthly HOA fee of $550-$1,000 which will never go down and will just keep going up.

If you think "I can afford 2000 dollars in rent, therefore I can afford a 2000 dollar mortgage payment" you'll end up with a massive house that you'll go broke living in as soon as things start to break.

Not owning a home is a risk factor for homelessness. Gotta figure where will you live if you lose your job, need medical leave, etc.

City folk always think of housing in terms of getting a mortgage to buy something already built. There is another option which is to buy land and an RV and build but by bit as cash becomes available. After 5-10 years the home is paid for.

wrong. especially when mortgages have frontloaded interest amortization schedules.

Rent is money out of the window

so is interest, hoa, closing costs, pmi, realtor commission, property tax, home maintenance but yeah, other than that it's "pure profit" that happens to be illiquid with no cash flow and suboptimal returns compared to the S&P. mortgaging a house is much more expensive than actually renting the same house. you'd have to put a hefty down payment to match what that house would go for in rent, and you'd still be paying all of the other costs. absolutely lazy thinking, which is exactly why owning a home is probably best for most people.

Why are you excluding 3% of home value in maintenance in addition to property tax? That’s 15-20k a year. Compound 30 years of putting 20k in the QQQ (average annual gain of +14%) for 30 years and let me know what you get

Renting is absolutely not “the same cost” as a mortgage at 6% rates, LOL. Also any money down would be fine better in equities… so sure, 3% down with 6% rates and you’re telling me you can’t find cheaper rent than that. LOL

I can rent a 1 BR 30 minutes outside a major city for $1500 a month, also not around black people.

Here's the rub for me and it's what the guy touched on in the video but I think didn't go into enough, buying a house is a hedge especially if location matters.
I cannot currently find a house or apartment to rent in my area with the same size, quality, location, and amenities as I currently have. For perspective I have a 3 bedroom single family house with a garage, front and backyard, under 10 minutes from the center of a medium sized city and walking distance to one of the great lakes.

If I was renting, I'd be priced out of where I live. I'd have to move probably every couple of years in order to maintain a rent comparable to my mortgage + secondary costs (insurance, maintenance)

You don't have a choice to stay where you are when you rent if where you are is popular and competitive. I think he really didn't give this point as much depth and analysis as it needs. Not everyone is as unattached and can afford to move every couple of years. Also moving sucks cock.

For perspective my average yearly home maintenance is like 2k. Taxes are 7k for a house bought in the low 200k and now worth 100k more

1500 for a 1BR sounds like a fucking nightmare and illustrates my point exactly. That's about what my mortgage started at for my 3BR house, much closer to the city, is only slightly higher now due to tax.

The point is with the money growing faster in a better investment, with time you will have outpaced the price of housing. Meaning you get more [housing unit value] per $.

buying a house = 8% avg return annually if lucky

BTC = 20% to ∞% avg return annually

At 30% return y/a, I will have made double what the house returned in less than 5 years.
even at 20% its 6.5 years to lap, and 10xs 21 years in.

Buying is straight up better long term. The only time renting is better is for flexibility, or if you just want to minimize living expenses since you can't really "buy" a shoe box apartment. But long term, apples to apples buying is butter, with rare cases of areas where houses are overpriced but the reverse can also be true where an area could be really good value. Buying is a liability match though so should be seen as the neutral positions, while renting is short house exposure.

toronto condo market is collapsing rn

I think you're right on the money man; arguments like this seem to want to apply a very abstract and general analysis to an outrageously variable and human-scale problem. It's not like the stock market where everyone is getting exposed to the same factors to some extent

I'm also suspicious of all the "unavoidable" maintenance costs which usually seem to be what eats up the upside of owning in these arguments. They're probably doing the right thing by being conservative as far as expectations, legality etc., but I don't actually know ANYONE who's replacing their roof half as often as these goons say you will have to. Growing up around hicks I can tell you that they're financially retarded in countless ways, but when it comes to fixing something that's broken often as not they'll just... do it. And I've been on the opposite side of picture enough times to know that half the time you hire a contracter, you're crossing your fingers and hoping the guy you're paying 90/hr is well-meaning and doesn't have a couple zoomer helpers who will spend half the time vaping under your staircase (ok maybe I'm extemporizing very slightly.)

I also can't help noticing that these personal finance rule-of-thumb narratives are very financially liberal from the one direction (saving 10% of your income is great, good job!) and very conservative from the other (you might have to pay HOA fees, army ant insurance, and floorboard tax! Better stick with renting!)

Any particular reason why? I've read that a lot of Toronto's recent condo construction is just super low grade slop meant for foreign students to cram into that normal people don't want to touch. Any idea where the demand is moving within Ontario then?

I live in a cheap house that is paid for. Bought in early 2000s. With insurance/utilities/property tax i think i'm right around $500/month (maybe less). I fix everything myself. Remember hiring mexicans to do a roof is like $20k now.

Not an argument, and your assertions are wrong.

why don't you just sit down with a spreadsheet and count the cost and run through different scenarios rather than relying on your imagination and traditional boomer wisdom? anyone who does their due diligence comes to the conclusion that renting is more cost effective than buying. Notice everyone who says that buying a home is a better financial decision is just repeating the same tired lines without any data to back it up. Why? because all available data points to the fact that a premium is paid on the lifestyle decision of home ownership.

"Worthwhile" would have to beat the stock market and I don't really think that's super likely

Depends on the market. I bought a house (well an appartment) 3 years ago and it's up 23% in that time. The mortgage is fixed at 4.5%.

To me the logic of buying a house is that over time your mortgage payment goes down, as you pay it off. You can also pay off extra if you have money left over (can be attractive for tax reasons). Your rent will never go down, only up. So a fixed mortgage can beat inflation. Mine did easily over the 2020-2025 period, as total inflation was something like 20%.

You can bring your mortgage payment down to a negligible level, meaning you have less fixed costs. So cost of living is not an issue when you lose your job, or stocks dump. I mean, sure taken in aggregate the S&P does 8-10% annually. But thats over 100 years. There are decades like the 70s and 80s where it's stagnant. What if you have to retire in such a period? Being able to control my expenses to me matters more than optimal returns. You cant time the market, I can pay off my mortgage.

This guy seriously needs to donate his sperm, it's insane how lucky he got on the dice roll of life.

You know what’s nice about a house? You don’t have to live in a shitbox apartment that shares a wall with a single mom who has half-black kids who make a shit ton of noise. Keep in mind that the majority of apartments have zero sound insulation, so it sounds like you’re in the same room with these people.

My point being that, sometimes the less-than-perfect financial cons of something are greatly outweighed by the drastic quality of life improvements you get from it.

I'm not directly disagreeing with you here, anybody who doesn't run their numbers when deciding to buy anything that big is a moron. I'm just saying that I think the problem needs to be bounded in much more specific ways vs. how it's usually discussed in videos like that. Inb4 you can adjust the terms of any problem to get the answer you want, yeah, of course that's true. But I'm not trying to suggest getting something for nothing, just that there are more tradeoffs that can be made than boilerplate arguments ever bring up. it's not woo because most people legitmately do want and expect newer construction, suburban amenities, sign on the line, don't want to be creative, etc. so for them I suppose it's true. It is a lifestyle premium; different lifestyle, different premium

sloppily built "luxury" units make more money than budget ones
until you outproduce market demand by 500,000 units
also int. student faucet got tightened

15-20k

Never paid that much in taxes on my home.
The taxes are nonexistent for me

I can rent a 1 BR 30 minutes outside a major city for $1500 a month, also not around black people.

Yeah the mortgage might be slightly more than 1500 for that BR. But the mortgage includes money you keep instead of waste.