Buying vs Renting A Home - Dave Ramsey Rant

LEalisalman salah LEA

My Mom got 3% interest

6:00 mark is why I have resigned to never owning a home. I do not have the FCF to replace an AC unit or put on a new roof. People all over and even Trump want to make unwise choices or encourage unwise choices all to have a false sense of security….a roof over their head but house poor. I live in Vegas and all the homes here I would basically have to pay 30-40% down to get to a manageable 15 yr mortgage. Some of us don’t have the luxury for job or family reasons to relocate our families 2,000 miles away on a dime either. Let’s leave the judgement to people like Dave who actually have proven they have wisdom to kick us in the ass when needed and teach us what to do.

4:00
Convincing people not to buy a home is probably some of the worst financial advice I've ever heard given.... I would love to hear this argument with "cars" as the property and not a home... Please tell me more about how it's cheaper to rent a car monthly than own a car 😂😂😂
(Also the whole "replace a roof" fallacy is way overplayed--I'm sure Dave knows that you can do a home inspection before you buy a property and you know the condition of the roof ahead of time or every time when you buy a car do you think man how much would it cost to replace this engine block- literally 0%)
(PS. The same argument is that it's better to be an employee and not a boss, "it's hard to be a boss and it's just so easy to be an employee" thanks for the great advice Dave-😂😂😂)

Hey pal I reside in a property which is decent though but planning to convert from G + 1 to G + 2 lets see by the grace of god will do it on immediate convergence Jesus Christ the power of Christianity

Have complete faith on USA 🇺🇸 and Hyundai and other banking institutions whose o relation and coefficient and tied up with World Bank and world stock exchange

Your I idiot my friend,
Your not Estimating correctly in the 80s it went down 2 Percent for renting.
This is now where renting cost is more and wanted but who has those houses to rent.
And how much old heads like yourself buy up the houses and put on higher prices.
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Your not helping your case how about you pop the bubble yourself with your rentals
Stop spreading miss Information on something as stupid as roof costs.

Not true in this current market.

To each their own. I’d rather rent, invest my money in stocks, and travel the world than be tied down by a mortgage, property taxes, and constant maintenance and repair costs.

A renter can’t make adjustments to the home and is always threatened with eviction

It’s 2026 now the house mortgage cost more than rent

2026 and he was wrong. Definitely dont agree with Dave. He left out alot of truth to justify his belief system. Definitely an arrogant man and a advantage taker

Dave in my area it takes a down payment of $250,000 on a $465,000 house to get payments to $2500 a month. My wife and I would need $10,000 a month to follow your rule. A down payment of only 20% payments would be $3900 a month and would force my family to make nearly $16,000 a month to make those payments comfortably. College tuition is insane, people are losing jobs now, who in the world is making $10,000-$16,000 a month to buy houses these days? Then your plan says put money into your children’s college fund. How can you not admit this is a bit much for the average american?

Woahhh that accent or thing he did at 1:16 was crazy lmao😂

I often disagree with him but the simple notion that being a landlord has to cover the cost of ownership which makes ownership a better deal makes perfect sense.

Buying a house is over-rated. You pay 1.5 million for a 500k house, you pay property taxes, you pay house insurance, you pay for repairs, you pay for maintenance, you might have difficulty selling and then overhead costs while it is up for sale and then you pay fees, fee, and more fees when selling and buying. AND, if you live in certain parts of Richmond, BC or Kamloops, BC in Canada THEN you might not be able to sell it at all because it of aboriginal rights to the land. Owning is NOT always better than renting unless you can pay for it without having to get a mortgage. I DON"T agree with everything that Dave Ramsey says.

Google search ~ Total cost of a $100,000 home loan, $239,000.

If my math is right, that is a 139% gross profit off the money I have in the bank that pays me 1% for the bank to lend out and get 139% gross profit off of.





How much does it cost to have my loan payment automatically deducted from my checking account by a computer?





SO, if you have a home loan from the same bank you save and check at, you are getting raped twice.



Anybody else see the problem to affordability?

What if you live there and rent out some rooms?

Living in a tent ⛺🎪 is the best way to live, this is how I live. Suckers!!!!😂😂😂😂😂

There are obvious caveats to this, you need to check if the place is vulnerable to flooding, forest fires, climate change, natural disasters, etc. Usually the government has mapping projects thatbshow vulnerability.

This doesn’t apply to rural areas

not sure owning is always better long term. rule of thumb i heard is you shouldn't pay more than 25 years worth of rent. we have an extremely good deal and rent for less than 1/30th of the asking price

My mortgage is $2,200 a month. The house next to me is rented for about $2,800-$3,000 a month. With that being said, you could easily find a smaller apartment for $1,400-$2,000 a month. Unless you’re needing space for a family of five, you don’t need to rent a house.

Thanks dave

A mortage would cost me 2400 dollars right now for any house in the area. What I'm renting now is 1200. I would have to double what I'm paying. I'm not sure what Dave is talking about because different people get in a different times in the market at different rates and income to loan value so hes not comparing apples to apples.

Put any money you save by renting into the stocks market! Over 30 years, you’ll have more than if you own a house, specifically in places where a house costs more per month than renting.

In the south (for example), it may be cheaper to buy while in many northern states like California, you can be better off renting and investing.

Was that Kermit ?

I'm contemplating buying a house now. I am dept free making in the 6 figures. The issue is I don't really want to stay in the location I am in for a long term and in the future may have to re-locate but, I have no earthly idea when that would happen. It could be next year or it could be 5-10 years from now. I hadn't planned on staying as long as I have so far but here I am. I don't want to get tired up in a mortgage if I won't be for but for a year longer. I also don't want to be renting the entire time if I get stuck here for 5+ years. I have no idea what I should be doing about this. any guidance? oh I would also be a 1st time home buyer.

Wrong! There are markets where renting can be more profitable. Home owners insurance, mortgage interest, property taxes and house maintenance can sometimes leave you with less money than renting. On average you’ll do slightly better owning but it’s not always. And this isn’t debatable this is math.

$1,500/mo rent and a mortgage for $800/mo? haha, oh lawdy. In Boston, 1-bedroom apartments rent for $3,000 (median). Cheapest [renting options] are like $2,600 and are in very bad shape. Single-family homes aren't too common (15% of all home domiciles), and they start at $1.8M (to buy) in the two main neighborhoods of Boston (Cambridge and Somerville), and those homes are in horrible shape and are sometimes in need of demolishing. Buying a home is not a proper investment, in terms of increasing one's wealth. APR's (6.5% - 7%) tend to be pretty much identical to the annual rate of return on home values (4% - 7% yearly). Once you factor in the cost of selling a home (2.5% - 5%), it's immediately a wash, or you're already losing money. Then, factor in all the additional home expenses like maintenance, PMI for a jumbo loan, HOA, etc, and one is definitely losing money on home ownership. It's not usually profitable; only in select periods of time and select areas.

Renting for as long as you can is the way to go. Since home ownership is essentially net-neutral, and investing in stocks tend to increase 10% each year (e.g., S&P 500 Index over the past 100 years has averaged this). Btw, due to compound interest, something that increased 7.18% each year will yield a total value of DOUBLE from the original value by the 10-year mark. And 10% return each year would be 2.59x after 10 years. Anyway, you should't tie up most of your money in real estate (i.e., home equity) since it's essentially net-neutral, so it should represent a small %. The general consensus is 20%-40% is optimal, especially towards the lower end. So, let's say one wishes to buy a home in Cambridge or Somerville, within 3 miles of their work, so their commute is < 1 hr. The house costs $2.5M. They'd want to cap a mortgage at $500k, which is $5k/mo payments. So, that requires a $2M downpayment. Let's allow for home equity being the absolutely highest percentage of the recommended window -- 40%. That means one's net worth (aka total assets) should be 2.5x what their downpayment is. So, a $2M downpayment requires starting with $5M! That is, $2M downpayment on a house is 40% of one's total net worth if they have $5M. This amount of money constitutes being in the top 5% of Americans. Isn't it wild even the top 5% wealthiest Americans can easily struggle just to buy a house near their work in the city -- and houses even a few more miles out from the city can easily yield a 45-60 min commute each way. America is cooked.

boomer logic, price of home ownership will go up so better to rent, and i will raise your rent to cover all costs and PROFIT. 😂 pure lunacy

While buying a home builds equity, it's more expensive upfront and ties you down. Renting maybe smarter if you want flexibility without maintenance burdens or you're in a high cost market where home prices outpace your budget.

Bought a downtown Atlanta condo in cash for $117K to keep housing costs low while pursuing an acting career. HOA is $389/month, plus taxes and insurance, so housing is under $800/month right now. The building needs elevator modernization, which will likely add $173–$295/month for 5–10 years (via HOA loan).

I could sell now and walk away with about $100K+ and rent in Vegas for around $1,000/month, but that would mean giving up acting and starting over in the casino industry.

Trying to decide: stick it out in Atlanta with low housing costs and some HOA risk, or cash out and choose financial peace in Vegas.

Dave likes to do this with his hands and then sniffs his fingers

How is renting property out to your neighbor not the biblical definition of usury? You are lending at interest.

Dave really has no idea. I have never seen rent go down. The only thing I have seen is rent and property price go up.

Try living in Europe, we make 1000 to 2000 dollars a month and rent is 500 to 700 😓