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Adam Ruins Everything – Why Home Ownership is Actually a Terrible Investment

Adam Ruins Everything – Why Home Ownership is Actually a Terrible Investment

Prepare to be dazzled, ladies. This house just
came on the market. (gasping) Danielle, the energy in here. I can feel it. This is our home. And outdoor spaces
are always in demand. This place is
a great investment. Mm-hmm. No, it isn’t. Crap, competition. Hi. (women gasping) Oh, hello,
are you looking? For a place
to live, yes, but– Come to think of it,
I probably shouldn’t buy. And neither should you. Fact is, a lot of people
who shop for homes would actually be
better of renting. What are you talking about?
I just got a promotion, and Jen’s sound healing
practice just got a customer. Yes, his name is Wolfram. Right, buying a house
is what you do. It’s the American dream. Ah, yes, for almost a century,
Americans have been taught that homeownership is the
ultimate middle class ideal. Oh, Harold, our
very own little castle. Isn’t it grand? Yes, freedom, stability, and no one will know
I’m a queer. Oh! But the fact is
for millions of us, this is a dream
that’s not worth chasing. Please, buying a home
gives you freedom. No, it doesn’t. When you rent, you can
move whenever you want. But after you buy,
you’re sorta stuck. (phone ringing) Ooh, a job that pays more money? In Hawaii? (chain rattling) Sorry, I’m just really
tied down right now. It’s even been shown that higher
rates of homeownership lead to higher unemployment
for exactly this reason. You’re forgetting that owning
a home makes financial sense. I am sick of paying
rent to some landlord. Yeah, instead you’ll be paying
a mortgage to some bank. How is that any different? Well, let’s see, I send you
a bill once a month. I kick you out
if you don’t pay and, ah, I don’t fix anything. That’s the difference. You’re gonna need this
when your heater explodes. And I’m gonna use your can considering I own it
for the next 30 years. (chuckling) Often, buying doesn’t give you
any more stability than renting. You’re just paying
a different jerk. And for the first few years,
you’re not even building equity. You’re just paying off interest.

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100 thoughts on “Adam Ruins Everything – Why Home Ownership is Actually a Terrible Investment

  1. As they say for cars, "Some cars are for the journey, but this beauty is for when you have arrived."

    Same for house renting and owning. Own a house when you have arrived.

  2. You can always relocate to a better-paying job in Hawaii. You rent your house and will buy or rent another one in Hawaii.

    Compare that to having to pay a lease early termination fee.

  3. Look renting is ok, but let’s be honest here there are renters who don’t know what they’re doing.

    A nice trailer can cost up to $600 to $800 depending on where you live, renters can even deny to rent to you if your spouse doesn’t work and you do even with a steady income that you make (this actually happened to my sister no joke.)

    Some places to rent aren’t even sanitary and renters didn’t inform my friend so he had to throw everything out due to the mold that got on his furniture and spread to his clothes in his closet and they still rent that same home.

    Some renters don’t pay for anything to be repaired and expect you to fix their issues with your own money, and the cost of rent is outrageous even for a one bed one bath home. They can also say you cause damages to their home that you didn’t even do (this is why you always take photos of the home before you rent I learned that from my personal finance teacher.)

    Tried looking for a cheap place to live with my friend and rent was around $600 to $1,000 per month and the houses weren’t even good they were run down.

    Then you have the whole “rent to own.”

    You rent the place till you own it and those houses most of the time aren’t even in the greatest of conditions they’re run down and are in high rate crime areas too.

    Like I said renting is fine if you want to do it but owning a home is a bit better depending on the location, how much it is, if it’s actually worth it, and if you don’t have to relocate every say four to five years.

    SOME (not all) renters are just scummy and ask to much for something they didn’t even have to pay much for per month. It also depends on the state you live in too and if people don’t talk bad about the renter.

  4. “Yah but I can always sell my house and make all of my money back”

    I guess we’ve completely forgotten about 2008 🤦‍♂️

  5. If you bought a house when this video came out you'd have so much equity during this market. This video is stupid… plus you could rent out your purchase.

  6. Nice Adam, raise the bar on stupidity and bad advice. How fun it must be for you to give such bad advice to gullible people… Living by the credo of the internet troll and socialist propagandist while laughing at the people who believe you.

  7. All you did was name the pros and cons of owning an Apartment vs Home, with absolutely no attention to the cons of owning an apartment or the pros of owning a house. This video has almost no financial advice whatsoever and instead lists its blindfolded biases in an attempt to catch views with a controversial video title, like many of the videos on this show.

  8. He's right. I bought a three bedroom, two bathroom house. I live alone, so I rent out two of the extra bedrooms. After two years of this my net profit is…nothing. The mortgage eats up most of my rent profits. The little after the mortgage is paid has gone to multiple plumbing repairs, a new medicine cabinet, two new toilets, and floor repair. One of my tenants destroyed one of my beds, so now I sleep on a mattress on the floor, because I can't rent out the room with no bed. Until I get a new tenant for a prolonged period of time, I'm personally bedless.

    Oh, and one of my tenants stole my credit cards and spent 480 dollars. I'd have a net loss except the credit card company didn't charge me for that.

    Y'know, when I first was considering buying this house, being a landlord sounded like a sweet gig. Other people pay my mortgage, plus I make a little profit. No. The reality is I really struggle to pay the mortgage when I don't have renters, and I live in dread of something serious breaking during these periods. And when I do have renters, it's always a huge gamble whether they will give me more money than they destroy or steal.

  9. HMMMMMMMMMMMMMMMMM……………..I guess this guy doesn't know what he's talking about either. Keep drinking the koolaid idiots. You have a barrel in your mouths in no time 🙂

  10. Yeah I'll pay rent for the next 30 years which probably means I;ll just have spent more money not owning a house than to just have bought a home.

  11. I wouldn't agree with Adam on this one because renting can be more expensive or even more difficult than owning a home.

  12. Everything is a trap in America high cost education, healthcare no option but to own a car unless you live in few select cities where even thought the public transport is mediocre at least.Rip off country hat enslaved it's people by promising freedom when in reality we are tied down by our own desires by debt it's sad.

  13. Yeah but instead of paying someone and that money going nowhere at the end you will own that house and then if you want you can sell it and potentially make more money or if you have kids you can leave it to them to help them get a better start in life

  14. Have to disagree.

    Inheritance. Retirement. Lower bills when you're older. Plenty of reasons to buy.
    Renting is your money evaporating. Pay and pay and end up owning nothing.

    And as for that "Not paying of equity first few years." That depends entirely on what type of mortgage you get. Admittedly I'm in England so slightly less corrupt here. But still, in my opinion buying is better than renting.
    But it depends entirely on your circumstances.

  15. Just an FYI, don't take your home ownership advice from a TV show. So much here is irresponsibly wrong and played up.

  16. I mean, as an entrepreneur, I like staying in one area. Moreover, I have so much nostalgia that I can't bear the thought of selling my house.

  17. Only the interest from the loan goes to the bank. The rest goes into your own pocket.

    This video is disingenuous.

  18. Unless you are 100% certain that you want to stay in a location for at least 5 years, you're better off renting somewhere that gives you a lease breakage clause for a fee… that fee pays itself off if you negotiate a good relocation package for your new job in a new location

  19. Buy a house and rent it out then live in your car renting is slavery my mom pays more then I do for a 2br apt compared to my 5br home

  20. Sooooooo paying 3k for rent is smarter than $1500 in mortgage? Lol me thinks Adam is someone's puppet which would make sense bc he likes stuff up him!

  21. Buying a home in a place you like to live with a 15 year mortgage is the best thing to do. Who's going to be able to pay rent when they're 85?

  22. Renting has significant cons as well. You can't just break a lease whenever you feel like it or without penalty, so if you get that sudden job offer, you can't just run off to Hawaii (but, you can actually sell a house with a mortgage on it – you pay the mortgage off at the time of the sale from the proceeds, it is very common). And you have diminished rights, security and privacy because you don't actually own the property. You can get evicted for many more reasons than non-payment of rent and sometimes with very little notice.

  23. Buying a house is still better than renting one because

    1) After you pay off your mortgage in like 30 years the entire house is yours. However even if you rent a house for 30 years it still doesn't belong to you. And you will still have to continue to pay rent. So in the financial standpoint you will pay more in the long run for renting a house than owning one.

    2) The value of a property will increase in the long run so that means if you buy a house today and you want to move out then you can sell your house at a profit as the housing market will always go up in the long run. However you cannot profit from this if you are renting one. And not only can you not profit from this rather it will be a disadvantage for you in the rising market because rent tends to go up when the value of the property increases so that means you will have to pay more to live in that house

    3) If you own a house then you can choose rent some of your rooms out. This way the money collected from the rent could easily be used to pay off the banks. However if you rent a house you are not allowed to rent it out to someone else.

  24. Well, if you get a better job somewhere else why not rent the house out? I understand the point the video is trying to make but saying renting and financing for home ownership are the same is abit disingenuous

  25. I guess there are pros and cons to both but buying a house is a lot more costly than most people think. Interest payments, insurance, maintenance and repairs and also upgrades cost a lot of money.

  26. I think that renting is better but this show has a few inaccuracies. When you pay your monthly mortgage you're essentially keeping your money, because when you sell your house you have to pay less to top up the mortgage. You can also leverage your mortgage and use it to buy other things, like more houses. If you move you can just just let a real estate company sell it while you move.

  27. Rent liabilities and purchase assets. American dream is a luxury. Let’s put the emotions and pride of ownership aside— a house is a liability because you pay IT every month. If the asset doesn’t pay YOU next month…. it’s a liability.

  28. This is something to make those that can't afford a home feel better about themselves. What about equity? What if you actually buy a house and stay in it for years or decades? What if you pay it off? Renting provides you with zero equity. I've known people that rent for 10 years or more and when theg leave they might only get their initial deposit back. What a one sided lazy video.

  29. Well here’s my idea but a house then rent when work calls but the time you retire you’ve got your house to live but this works only for the high middle class and wealthy jobs

    Ancestral Homes/rich people – Hold my Pepsi (I’m Muslim.)

  30. that's why is best to wait until you have enough money to buy a house upfront instead of getting a mortgage

  31. Exactly what I always said!
    If you’re buying a house, you’re doing it for your heirs. That’s pretty much the only difference

  32. I will disagree with you on this one. Owning a house is an asset. You just have to do it the right way. The dave ramsey way. If you get a 15 years mortgage loan. You will not have to pay anything after 15 years and you pass it to your children after you die. Whereas you have to pay rent every month for as long as you are staying in the property. Plus rent can be increased. As for moving away for a job you can always rent it out and use that money to pay rent for your new home.

  33. The thing about buying is you can decorate and it’s better for family’s because they often move less

  34. Actually the buying a property is a good idea but the major mistake most people make is that they buy the biggest house they can find. They waste most of the money paying the interest over 30 years. By the time the house is paid off you could've bought 5 houses.

  35. Unless you pay the most cash up front and try to pay your house as quickly as possible it's the best investment you can make. If you need to move sell the house

  36. A couple of points: There are few tax advantages to renting. Mortgage interest is deductible, and allows filers to itemize. Yes, you pay mostly interest in the first few years. But adding just a few dollars extra to each mortgage payment will drop the total interest amount radically, as well as shorten the life of the loan. As for being tied down, you could rent out your home should you decide to relocate. You could sell it, turning any profit into another real estate or other investment. If you stick with a fixed-rate mortgage, no one can raise your payment. Try that with rent! Improvements to your home add to your cost-basis. Improvements to your rental add value to the landlord's property. Adam may ruin everything, but he doesn't necessarily know everything.

  37. The point isn't that you shouldn't own a home at all or that it doesn't have benefits. The point he makes is against her specific statement of being a good investment. Think more literally like 20,000 dollars in a solid investment portfolio vs using 20000 on a house

  38. Homeownership depends on the price of the home and the interest rate. A cheaper home that isn't fixed up but livable at a lower price in a good area builds wealth better than a high price home in an area where its inaccessible. I watched my home go from 145k to 250k in 7 yrs. If you can buy low then do it. If you wait too long it'll be out of reach.

    So finding a house at 120k which is 24k down @20%, 12k @10% or 4.2k at 3.5% is more cost effective than buying a house at 500k. A 500k house is 100k @20%, 50k @10% and 17.5k @3.5%. With the 17.5k @3.5% on a 500k house can be used as a 10% down payment on a 120k home.

  39. I feel like this video is just not mentioning a lot of points that are for a home ownership. For example, paying rent is different from paying a morgage, because at the end, you will own the place that you have been paying for (unlike a rented appartement). Plus, during the last couple of years, house prices have been growing and growing and aren't falling yet, if someone bought a house in 2005 (like my parents) they can now sell it for a much higher price. In my opinion, this video is very biased and not well researched.

  40. Better than paying your landlord’s bills and funding their vacation plans. But Adam has a point. You only have a few years in between paying off your mortgage and then being forced into a retirement home

  41. Except when you buy after the crash…and then sell 5 years later during a boom and make a huge profit! Student loans paid off baby!!! 😁

  42. It's better to do a 15 year mortgage. It costs more per month, but intrest rates are lower, and you'll pay it off twice as fast

  43. I’m about to close on a house. it really depends on your situation. For me, my mortgage will be around $500 a month. If I where to rent in my town it would be $1000-$1200 + Utilities for the same size/location.

  44. You're don't own your home, you're just renting it from the government. And top this with local regulations from local government agencies telling you what you can and cannot do with your property + a bank/lender breathing down your back every month = no thanks. I'll stick with renting.

  45. I don’t consider real estate an investment, it’s more of a buy a place to live sort of situation. I wouldn’t care if it results in a profit or anything really

  46. Owning your own house is the best! You can renovate and expand when necessary. You can make bold choices and make it your own. Moving around is overrated and will only give you ulcers.

  47. but once you pay it off it's yours rent free. also you can sell it and make some of your money back. i have a cousin who moved from toronto to a smaller city in atlantic Canada and got a HUGE house

  48. Lease for year to rent before you could decide to move out, constantly waiting months for landlord to fix something simple because fixing it yourself could violate terms, monthly invasion- i mean inspections, additional garage monthly fee, pet deposit and monthly fees, restrictions what you cannot have or do, can be kicked out for any number of reasons other than terms of agreement and monthly rent, nosey and noisy neighbors on the otherside of the wall, two flights of stairs just to get in the apartment, limited parking places, and changing monthly rent; sounds lovely to rent.

  49. This is the worst advice I have ever seen. Yes, it's better to rent if your job isn't stable or you know it's short term. Yes, it's better to rent than buy a house you can't really afford but if you put a reasonable amount down, get a mortgage you can afford and take the time to learn the best ways to pay that house off, it is the best investment you will ever make.
    It's not owning that can be a problem, it's the mortgage.
    Many years ago, the banks wouldn't write you a loan that you couldn't afford. If it went bad, they lost too. It was in the bank's best interest to have you make all your payments and eventually pay the loan off.
    Problem is, the government wanted to make it easier for poor people to buy a home. They knew banks were not going to just start loaning money to high risk people so the government created ways for banks to write these risky loans without any risk to the bank. Mainly, they allowed the banks to write a risky loan, get their origination fees etc, and then sell that loan to other investors that get stuck holding the bag if those loans go bad.
    Now you need to educate yourself, you need to make sure you can afford what you are buying.
    Look at the amortization tables and see how much you are paying in interest at the beginning.
    Look at how much you save over the life of the loan if you simply put $100 a month towards principle only. Just paying a little extra on principle only at the start, shifts how much of your payment is interest and how much is going to pay off the principle. An extra $100 a month for the first few years can take years off the term of the loan. A 30 year mortgage becomes 20 years.
    I made a double first payment on my mortgage. One was the normal monthly payment. (mostly just paying interest) The second was a principle only payment and that simple, one time extra payment took 6 yeas off the term of my loan.
    There are lots of little tricks to make your mortgage work for you but you have to have a little extra every month.
    If you buy the max you can afford and are only making the minimum payment, it will be several years before you really benefit at all.
    If you buy something you can afford and pay a little extra, in 8 or 10 years, your mortgage payment is the same, or less than rent would be plus you have equity that builds every month.
    In 15 years, you have tens of thousands in equity and your mortgage is notably less than rent would be. If you paid extra, in 20 years you could have a 30 year mortgage paid off and you are only paying taxes and insurance every month.
    If you are smart about it, home ownership creates tremendous security and benefits.
    If you aren't smart about it, you just end up paying everything you have on a loan you never really get on top of. Adam only presents the bad side. He assumes an uneducated buyer making bad decisions.

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