Right now during a real estate bubble, it is much smarter to rent in a lot of markets. In the United States, pretty much the entire western half of the country, Texas, Florida and a few other places it's a lot cheaper to rent than to buy. So right now, purchasing real estate is an absolutely terrible idea. Conversely, after a real estate crash, the opposite holds true because if you can buy a house for cheap, as real estate prices and rents go up, your housing price will stay steady.

History repeats itself. Every 15 years or so we have a real estate bubble and every 15 years or so we had a real estate crash (bubbles: 1990, 2005, 2021; crashes: 1997, 2012, 2027). So right now would be better to rent; in about 5 years, probably a great time to buy. Bottom line, if it's cheaper to rent than rent; if it's cheaper to buy than buy.

Well said! I am also here to learn how to invest after listening to a lady on tv talk about the importance of investing and how she made 7 figure in 3 month, somehow the video taught me nothing and left me even more confused, I'm a newbie and I'm open to ideas on how to invest for retirement

The key is not buying a McMansion. Don’t buy more house than you need. Ostentation is not in your financial best interest.

The costs of owning and renting should usually be about the same. Excepcional situations may occur in which it is obviously more advantageous to own (or not) a home. But most of the time the costs of ownership and rent both merely reflects the current (and percieved future) economic situation.

Those CNBC people are not the end all be all ! There are hidden costs however if those dummies make less money they would realize that at least before the current run up of RE prices is a HEDGE against inflation! Rentals are way to high in the US ! Landlord can kick you out if you don’t pay new upped up rent however let’s say you own a home the AC goes out you have options sure it’s a pain but at least you have a roof over your head ! Those financial so called gurus are missing the inflation factor !! 😤let alone the stress of having to find a new place at the whim of some else!!

Well, this is completely dependent on type of real estate and location. But in general it is not hard to find objects where the potential loss is low but reward can be great, but this also means you might have to pass on your dream house and make a compromise between what you would prefer and what is a good investment. I have bought and sold two times and each time doubled what I put in.

Lucky timing for me. I bought a cooperative apartment 24 years ago outside of a major US City. Condos and single family homes were what people wanted back then. So glad I bought it – all paid off now, and even with increases in the monthly "maintenance" (common charges plus municipal and state property tax bundled in), I'm paying about 40% of what the market rent rate would be for my unit.

I love hearing your perspective on this. Thank you for sharing.

Also as you get older as a single gent, owning a home and living with a gf, can turn out costing you money in a defacto type relationship.. Better to rent.

If this video is aimed at high earners, that have large disposable income, then property is just another diversification… For people with under 100k income, a mortgage is a waste of 100s of thousands of dollars of limited earning income over a lifetime including property tax and maintenance….
Unless you have children.

If you're planning on living in Kuala Lumpur, plan on running a dehumidifier 24/7!

Spain property tax is so freaking high

The only people pushing you not to buy, are professional landlords.

Anyone with half a brain, would buy a house.

The forecasts Are that housing prices are going to crash In the USA and also Western Europe over the next two years. So now is the worst time to buy a house. Now is the time to sell.

I'm in Brooklyn NYC, no more rent control. It's now only rent stabilized which went up 3.5% and yet no improvements have been done on places.
Living in a shoe box is stressful and kills productivity. I think Paris or Amsterdam would be a better place for what I want. Well right out side both cities. I want to be able to ride a bike and not get hit by a crazy person.
But thank you for this information. It came at the right time for me.

"You will own nothing and be happy". Klaus Schwab WEF. ( No they will own everything and everyone else will be equally miserable.)

Timely! Thanks

This video is more about owning rental homes in other countries. Not about mortgaging a house in America. Owning (mortgaging) a house in America is never-ending burden of debt that you're stuck in for 15-30 years.

Make 7% on your 401k. Such bullshit. 401k funds lose 7% per year.

Fuck no. Invest in crypto. Not real estate. The real estate market is the biggest bubble in the world and needs a major correction. Crypto is healthy and has massive corrections. I will NEVER buy a home and settle in one place. You want to be liquid and be able to leave any place at a moment's notice with your assets.

6 Represents a person
66 Represents a group, e.g. a Capitalist Company 
666 Represents Satan or a Communist/globalist Country 
 
Born-again a Second Time (Spiritually) Escapes/Raptured, SOON….

Owning where you live, mentally, works for me. Forget leverage, opportunity cost etc. Own all of them. It's one less stress in my life.

You have to be careful..my thailand property has not increased because of over building. My malaysia property was bought at half the price because i waited till the over built "over hang" needed to be sold. Its hard to re-sell your property in latin american countries because banks dont lend mortgages …need a cash buyer. In many countries, foreigners cant own the land. I was looking at condo in indonesia and discovered there was only 10 years left before the landowner reclaimed the development. Many condo buildings in asia dont even hold up beyond 10-15 years before they are hazardous…shoe box size condos

I own property on both the North and South Island New Zealand. It is very expensive to rent in NZ. I have doubled my mortgage payments and the equivalent rent on my North Island abode if I rented it would be 20% less than my double mortgage payment. Landlords actively want you to break the lease so they can rent that property for a higher rate to the next individual. I don't know how renters become home owners in this current NZ home market.

I think it is quite risky to buy a property abroad especially you don't even know the language and systems there. I heard so many property scams
in Prague, Phnom Penh etc

Owning property is a form of personal sovereignty. I have a property I own and one I rent. I have full control over the one I own and very little over the rental. That said, some of this boils down to lifestyle. If you like or need to move around a lot then renting is best. As an investment I made a lot of money on a home I owned.

We can always buy properties in other countries with better taxes and prices, rent em out and rent where we live.

Home owners tend to be more diligent. Renters tend to be less diligent.

Some great points made! Love how well you prepare your videos on a topic.

I agree that the basic math presented in the CNBC article is incorrect. The cost of owning my home, including insurance, repairs, etc. is about 2/3 of what my house would rent for and I’ve had tax savings and appreciation along the way. Clearly there are markets where there isn’t much appreciation opportunity but I wouldn’t buy there unless I absolutely had to because of work.

Considering that the US still taxes you if you live abroad, how can living abroad lower your taxes?

Nowadays, I think owning a home is bad as an "investment". It's OK to own a home as a primary residence, but that's about it.

The risk of real estate is political, if central banks continue to raise rates (Maybee Volcker way) it will decrease the amount people can borrow and affect negatively. If they decide to leave substantial inflation borrowers with fix rates are in great position as they will pay back cents on the €.

If you have 1 mil euro that you have invested in government bond or money market and you plan to move to France and or Italy for example for the next ten years ask yourself this question should you use your 1 mil euro you have to buy a home for 1 mil euro cash or rent the very similar home for average 5500 euros per month. Assuming the rent amount increases by 4% annually in 10 years you will be paying cumulatively more than 800K euros just for rent without any equity in that . That is 80% of the initial cost of ownership of that home! If you have that extra cash it is no brainer that you should by a home. Additionally investing in those European countries by owning a home might give you a pass to permanent residency and a pass to citizenship. Isn’t why you plan to move to Europe to begin with?

The original article seems deliberately adverse. You don't have to justify yourself to them.

Looked it up: Its around 60%- ish AROUND the WORLD of people owning a home. Generally, I think it is a good idea to buy (although the average person will OWE a mortgage in most cases). I'm in a unique situation where I pay very LOW RENT, sharing with a long term partner in CALIFORNIA. But I own a Condo in MEXICO free and clear (although with Mexican Law you own it 'in trust' with the government). If I had to do it over again (if I was 30 yrs old) I would probably BUY a home. But Now, being single, older, no kids, and I'm a long term tenant in a place that I remodeled, I don't think its necessary.

i just put all my money back into the business because i know i can make way more money that way also gives me more freedom then being tied to a country.
in the future i plan to keep maximizing the investment on my business then i will invest/buy in other online business that i understand rather then being speculating on the price of a piece concrete that is already quite expensive for the average person here.
maybe in the 15 years if i have millions in the bank i don't know what to do with it i perhaps buy a farmhouse or something like that.

where to go to find property online

I think everyone should own at least their home. Property ownership is important.

Who cares about property taxes! Keep your monthly expenses low and your income high the rest is easy!

The whole point of nomad capitalist is to do what works best for you. I totally both of these situations could work great depending on a person's wants and circumstances. Great video, Andrew!

Renting a small home is probably the best recommendation. Extended stay at Ibis hotels is another recommendation. Digital nomad capitalists are prepared, and have options. Real estate is notoriously difficult to budget in a spreadsheet. It can be done in hindsight should be said. Go small. Go now.

one… yeah bad… when you are on your 10th and all of them are collecting a rent not so much…

Owning property here in Southern California has been a financial blessing! Yes taxes are higher but so is the rent I charge..

How do you pay property tax overseas?

I am a real estate broker in NYC. It comes down to preference. But when you don’t have fixed expense expectations set in the future, times like today where you have 30-40% YOY rent increases like in Miami or luxury product in NYC, you start to see an opportunity cost show up for not buying earlier.

Personally I don’t like owning real estate that doesn’t pay me to own it.

When I bought a house in a small coastal town here in The Netherlands 4 years ago, I was a bit worried the value would probably stay the same or even decrease over time considering nobody was really buying houses in this town and the house prices were only really increasing in the cities. It kind of seemed crazy at the time. Oh boy! How wrong I was! The house is now worth a million euros and I bought it for 575k! Perhaps it would be a good time to sell it now, but I won’t because I really like it.

Its passive income. It depends on where. your property is located. I have property in LA. 3 blocks from the beach. The equity will continue to grow. Am currently living in Europe

Interesting you use Davenport, Iowa as an example… I lived there, called the Quad Cities, two cities on the Illinois side of the state line and two cities on the Iowa side of the state line. I was there for 2 years in 2013 and at that time the mass business exodus was from tax heavy Illinois to Iowa… Now it's time to leave the U.S. all together. I have been living overseas, unfortunately due to Covid restrictions I recently had to come back to the U.S. For worl. Now… as a Side Note: I have found it interesting how the U.S. IRS has twice now, for 2020 and 2021 tax years just out right denied my filed tax return (denied my tax money be returned to me) and will not give me access to their call in system as every time you call the phone lines are busy and there is no option for holding on the line anymore. When did the IRS audit process change? In years past you tax preparer would be notified that you were being audited and you had an opportunity to prove or show evidence for your return of tax money. The approach now seems to be… you are outright, arbitrarily, denied and getting access to refute that denial is now an issue… nice mafia racket…