Should You Buy a House?
Should You Buy a House

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You can learn more at SUBSCRIBE to Two Cents! The importance of homeownership is still embedded in American culture, but actual homeownership has dropped to its lowest level since 1967. How should we react to that? Are more young people ready to buy a home than they believe? Two Cents on FB: Two Cents on Twitter: @twocentspbs -- Two Cents was created by Katie Graham, Andrew Matthews, Philip Olson CFP® and Julia Lorenz-Olson and is brought to you by PBS Digital Studios. We love dropping some knowledge on all things personal finance and helping you make better money decisions. Two Cents is hosted by Philip Olson, CFP® and Julia Lorenz-Olson Directors: Katie Graham & Andrew Matthews Written by: Andrew Matthews & Julia Lorenz-Olson Produced by: Katie Graham & Amanda Fox Images by: Shutterstock Music by: APM Works Cited:


Joshua Castillo : Gosh you two are good life coaches.

Mr. Beat : Simply put, less people own homes today because less people have enough money to own homes.

Kristian DC. : "It's called The American Dream for a reason, you have to be asleep to believe it."

Owen Jauregui : Omg, I swear when I subscribed about a week ago, you guys had 30k subs, now you guys almost have 90k. At this rate you guys will reach 1 million suns in no time at all.

Samuel.S : I’m fine living in my parents basement playing monopoly for millennials

Tampatec : Value of houses are overvalued vs average wages and property taxes are high.

Nehal kumar : He looks like "Little finger" from GOT !!...

Quick Fix - Thought Provoking Videos : I feel our generation will retire in developing countries since that's the only thing we will be able to afford.

This is Barris! - French History : Well, this is painting a jolly picture for us millennials.

Zel's 4K Emulators and Archive : I'm going to buy a van with solar panels on it. Nu Murrican Dream.

Michael Gainey : 0:25 "Actual home ownership has dropped to its lowest level since 1967." I don't know how much of this is made up for in population growth, but this suggests that demand is falling. If demand is falling, why aren't home prices falling too?

MrRzguitario : Wow, this is probably my favorite PBS YouTube series so far. Hilarious and educational at the same time!

murcielago Batman : This video should be show to high school student

Alex Shuysky : I think the problem is that back then, when you bought a house, you get a brand new house with modern appliances and amenities, and sometimes you can decide the style you wanted. Nowadays when you buy a house, it's a relic to the past where you have to do work to make it livable up to today's standard, rework the wiring, reapply insulations, replacing old rusty pipes, and you have to pay a lot more to even get a new decent house, that's the thing baby boomer didn't put in perspective when they blame millenials for not buying their crappy outdated houses.

BikeNinja98 : Excellent video! There’s a politically wide range of economists such as Robert Reich and Richard Wolff who argue we need to pay the working class more (or at least the amount we used to) instead of giving them more credit which reduces our net value in the long run. The minimum wage used to have an upwards trajectory in real value; now, whenever it’s raised, it’s actually raised to a value LESS than the previous value after inflation. In other words, the worth of our minimum wage peaked sometime between the late 1960’s and early 1970’s. Raising the minimum wage is just one way in which we can improve the standard of living in the United States. In addition, more people will have the power to buy more necessary goods and services, which means a growing economy. Spokespeople for powerful monopolies (and those that they have convinced) argue that growing our minimum wage (or even returning our minimum wage to its previous value) will raise interest rates and slow down the economy, but they leave out a couple of crucial facts. For example, our economy is already inflating regardless of whether or not we pay people fairly, and poor people are going to see more upwards growth with that raise than the CEOs that already make dozens of millions of dollars a year each. In other words, companies might raise their prices when wages increase, but that isn’t a sufficient reason to pay people less as products continue to become more expensive. Our wages should rise WITH the increasing price of goods, not stay the same so that we aren’t as able to buy as much next year, all while the profit of those differences go to the CEO and shareholders. This is not a terribly controversial idea between labor economists who have studied the numbers. It becomes a controversial idea when profiteers feel threatened (as the public becomes more aware of the issue), and as a result, those profiteers create a PR campaign to confuse the issue.

Shrinidhi Ghatpande : If you believe in the invisible hand of market, then you should accept the refusal of millennials to home purchase as nothing but rational.

Shahrooz Shadbakht : Love your videos. Each one is so helpful! Some of us dream about buying an acreage out in a small town somewhere to live self sufficiencly and semi off-grid, maybe even a permaculture. Can you do a video on that please? Could one quit the 9-5’s and retire early?

derek yasmar : you can call an apartment your home.... I live in an apartment and I call it my home. Home Sweet Home.

Mr. D : 200k for a house? Here in Vancouver 200k is about a 7% down payment for a house... young people are FUCT...

pommeG03 : Great video! I also think that the location someone lives in plays a huge roll. My BF and I got a beautiful 3 bedroom for $230k in a more rural area, and we have almost no yearly maintenance fees, other than upgrades that improve the value of the home, since we were diligent about the inspections. Our combined mortgage, taxes, and insurance are equal to the rent most people around here pay for a 2 bedroom apartment. However, my friends who live in the city downstate are paying 3-4x my mortgage for rent alone, and owning property is a pipe dream for them. I honestly think millennials should be getting the hell out of cities and moving to more rural areas where their skills and influence are needed!

Nick Shvelidze : Geographic flexibility is very important.

antbanks415 : /Houses are too damn expensive. / topic.

The Smartest Guy In The Room : The real estate home prices are a run away train, with everyone being greedy to get the most out of their house, with people making less money, interest rate on the raise and inflation..... I would suggest stay far away from purchasing a house let the market implode on itself we are already in a second bubble

elifeleth : Getting from South America, I love your channel!! Great videos about being smart financially

LordSlag : ...also, wages have been flat for 45 years and everything has gotten more expensive.

Raman Dhungel : I was awaiting your video..

Vahid Saberin : My dad had that exact same moustache in the 80s.

big matt : Credit score of 760 is hard when you don't take on any debt like credit cards, or car payments

Manyl Teffahi : your primary residence is never an investment. investment by definition simply means putting money in your pocket . PR takes money from your pocket. if you count on appreciation, this is called speculation. But even if you sell is double your initial price, you are going to buy 2 houses... to meditate !!!

perryizgr8 : Importance of travel seems to be unrelated to the increase in the pressure to travel for better opportunities.

goldfishcrayon : Didn't get the best loan terms (only had 3.5% down, 30 years) but we got a comfortable 3 bedroom house in the Midwest for $750 a month with the mortgage insurance. Rented a 2 bed duplex in same area for the same price. So the investment is still worth it from a quality of life standpoint... If you can afford to rent you can afford to buy as long as you have the savings for emergencies and home improvement costs. We also got a great deal on the house and planned on moving in 3 years so even though it's less than 5 the housing economy is in our favor right now.

Reiden Lightman : It's important to remember that treating a house like an investment means you expect some sort of gain from it later. If you plan to gain money from your home, that means you plan to sell eventually, so maybe don't buy a home you'll be too attached to. Also, if you plan to move in 5 years, but your mortgage is for 15+ years, then you're essentially renting instead of buying. You don't truly own your home until you've paid it off. Otherwise, the bank will come and run you out. I used to live in a house, but the interest rate was jacked up so high my mom couldn't pay the mortgage. Out we all went. If you plan to stay at a house forever and pass it on to your kids in your will, then treating it like an investment you plan to make money on isn't very wise at all.

Ashwin S : You both look beautiful together🤩

gotwoh3ll : Hahahahah 6 k i wish that was all i owed in student loans. Add a zero to that and you get close

Liv Ocampo : Man, I remember when this video had 20,000 views, now its over 300K! Congrats to your success, guys! Glad to see the channel is growing.

nplowman1 : Is the 20% down payment still a realistic goal for a first time home buyer? For a 200k house that would be $40,000, which is absolutely insane.

dcavic6157 : Buy a house good Buy a multi-family great. Join the military get veterans status so Uncle Sam pays you back in benefits amazing 😎.

Feynstein 100 : Why are houses so expensive in the US? You're paying hundreds of thousands of dollars for a glorified wooden cabin. I'm from Nepal and here, for that price, you could build a 4-storey reinforced concrete house in the city that would last 100 years with little to no maintenance. I thought things were more efficient in the US. Hmm perhaps it's the land that's so expensive, not the house?

Robin azdreamer : If you squint he kinda looks like a dark haired Ryan Gosling/Jake Gyllenhaal morph **subbed**

SJ PATIL : Buy a house & give it for rent

Serene Valor : You are like my second set of parents that teach me how the world works even though I'm an adult. I love this! P.S. I loved your video on saving for retirement and I've already created my own plan for my future. Thank you!

BinaryOrbitals : How are you gaining subs this fast? Edit: HOW ARE YOU BEING SPONSORED AFTER 10 VIDEOS?!?

Not That Guy : I had this same question and put it off for far longer than I wish I had. It's cheaper than renting, and you are building equity as long as you don't use your house as a bank account. I'll have one of my main retirement assets when it comes time to do that, and I won't be throwing away money on rent for the rest of my life with nothing to show for it. It is smart to consider that you shouldn't be like most Americans and not be able to afford a $400 emergency, which is just playing with fire whether you own a home or not.

KidSnatchhy : Bought a house 648/month mortgage finish basement live out of it and rent rest of house for 1100/month = GOLD.

LAW 00 : It’s it better to rent or buy a condo if you are 23/25. And making 100k+

Mr. Kev : just found you and love your videos, keep up the good work : D

Monstermushmush : It's like economy for kids. Perfect. THANKS FOR MAKING EVERYTHING SO EASY TO UNDERSTAND!

KuruGDI : 4:02 When you show the running numbers, 8 shouldn't run in front of 7 - it should be 6 instead. You know, 6 is afraid of 7 and not 8...

TheNullBox : Wait! Ryan Gosling stars in every 2 Cents video?