[JSH]

Originally Posted by Isaac Zachary

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Also, in 2008, for an example, I knew people who had to move but owed more than their homes were then worth. So in order to sell, they had to pay. So they lost more than 100% of their mortgage payment.

People did not have to pay to sell their homes in 2008 - they chose to. People got emotional and wrapped up in an odd sense of financial integrity and chose to pay to get out of their mortgage instead of turning over the keys to the bank and walking away. A mortgage is a contract - nothing more. It doesn't make someone a bad person if they exercise the clause in the contract that lets them walk away and leave the bank holding a loss. If the tables were turned the bank wouldn't hesitate a second.

I also don't personally know anyone that got into trouble with their mortgage in 2008 that had a traditional 30 years fixed rate mortgage with 20% or more down. The people in trouble were putting next to nothing down on adjustable rate or balloon loans expecting prices to always go up.

Originally Posted by Xist

First of all, we have discussed that while Dave Ramsey always talks about a 12% average return on mutual funds, Warren Buffet says it is 7%, and sure, Dave Ramsey has made a great deal of money being correct some of the time, but how much of that money has been from telling people how to make money?

How much has Buffet made investing other people's money?

Both Ramsey and Buffet are right but Buffet's number is more realistic. Ramsey's is the simple average of S&P 500 returns since 1928. A better number would be 10% which is the Compounded Annual Growth Rate. An even better number is Buffet's which takes that 10% number and adjusts for inflation.

Ramsey has made a bunch of money selling financial advise
Buffet has made even more investing other people's money
The people you listen to on Youtube with their get rich schemes are hoping to make money convincing you their techniques work (instead of following their own advice)

We have also discussed that real estate investing has created 90% of the world's millionaires

BS number from someone that wants you to invest in real estate. (Also that link is blocked on my work computer for "Criminal Activity".)

Originally Posted by Xist

in 2019, homeowners in the U.S. had a median net worth of $255,000, while renters had a net worth of just $6,300.

True but misleading. The vast majority of Americans are really bad at investing - as in they don't do it. The primary reason people that own homes have more wealth is mostly due to the equity in that house - which is a forced investment. Even that is changing as more and more people tap the equity in their homes to finance their lifestyle and end up perpetually paying a mortgage.

That said:

Originally Posted by Xist

If your cost of ownership is as much as your rent would have been something is wrong.

Landlords cover all of the expenses you would have as an owner and still make adequate money to buy more properties.

This is completely true. Rents pay for every expense for the property owner + a small profit. Nobody would own and rent houses if it was a money losing activity as a whole.

Originally Posted by Xist

Why are we talking about a down payment anyway? Remember this is eligible for a VA loan?

No down payment is necessary!

Which puts you at high risk of being upside down on the loan in a market correction.