ilmscore | Why You Shouldn’t Buy A Home In 2024

Why You Shouldn’t Buy A Home In 2024

Published: 2024-05-15
Status: Available | Analyzed

Predictions from this Video

Total: 7
Correct: 0
Incorrect: 0
Pending: 7
Unrated: 0
Prediction
Topic
Status
Homeowners should anticipate approximately $14,155 annually, or about $1,200 monthly, in hidden costs associated with homeownership, including taxes, utilities, and maintenance.
"Zillow revealed that homeowners could expect to pay $14,155 a year or almost $1,200 a month in hidden costs related to owning a home."
Home Maintenance Costs
Pending
Repair and remodeling costs are predicted to increase at an annual rate of 6.6%, which is higher than the current inflation rate of approximately 3.2%.
"at a 6.6% annual rate of increase repair and remodeling costs are outpacing inflation which is currently running at about 3.2%."
Home Repair and Remodeling Costs
Pending
Key home components have specific lifespans: roofs (15-25 years), water heaters (10-15 years), AC units (12-15 years), and garbage disposals (frequent breakage).
"roofs generally last anywhere from 15 to 25 years water heaters last 10 to 15 years AC units could last 12 to 15 years garbage disposals break every few weeks"
Home Replacement Lifespans
Pending
For non-new construction homes, budget $500-$600 per month or 1% of the property's value annually for repairs and maintenance.
"unless you go and buy a brand new construction just assume that you're going to spend anywhere from 5 to $600 a month in repairs and maintenance or 1% of the property's value every single year for just things that come up"
Repair and Maintenance Budgeting
Pending
Renovating fixer-uppers should be planned with an expectation of costs being 25% higher and project completion taking twice as long as initially estimated.
"anytime you buy a fixer you need to assume these two things will happen one it's going to cost 25% more than you assume it will and two it'll take twice as long as you think to complete"
Fixer-Upper Renovation Costs and Timeline
Pending
To realize the benefits of homeownership and equity building, individuals should plan to live in a purchased home for a minimum of 8 to 10 years to offset closing costs.
"I generally only encourage people to buy a house that they intend on living in for at least 8 to 10 years otherwise the closing cost of buying and selling are going to eat away at all the benefits of being able to build equity with a mortgage"
Homeownership Duration for Profitability
Pending
In most locations, renting is financially more advantageous than buying a home if the ownership period is less than 15 years.
"unless you live in the home for at least 15 years renting is cheaper in most areas"
Homeownership vs. Renting Financial Sense
Pending