► Webull, Get 5 FREE stocks valued up to $9600 and $5 of Cryptos:
How’s it going everybody this is bush i woke up one day and decided to check on zillow and to my surprise home prices has just went berserk my home has just increased 160 000 or 15 in just 30 days today i’m gonna talk about home prices increase what i think about it and what you can do to catch up so that you can actually afford to buy a home this video is brought
To you by weeble and i’ve been talking about this trading app for i don’t know how long years you can get five free shares worth up to ninety six hundred dollars just for signing up and making a deposit you can also get five dollars worth of free crypto just for trading one dollar worth of crypto check out my referral link down in the video description below home
Prices is just ridiculous so what is driving these home prices higher strict zoning laws does not allow high density homes to be built so you have a scarcity just built right into the law in my neighborhood over here i can actually not build adus attach dwelling units in the backyard the hoa will just go nuts over this so because of this even though i have a yard
The space could be used to house more people but you just can’t do something like this really what needs to be done is these laws to be let up but then there’s like a gridlock going on so what i see happening is this is not going to get alleviated any time soon it’s just going to have more and more demand driving home prices up higher and higher ever more what’s also
Driving up these prices big tech is near there’s facebook that’s pretty close around you can have driving distance to google you can possibly commute to apple over here so i’m incredibly lucky for having this place and even holding on to it because some time ago i was talking about moving out of california well just because i’m staying here and i’m just holding on
To this i’m making more than i probably like a hundred thousand dollars per year just for sitting on my butt doing nothing it turns out i’ve been valuing my home completely wrong recently a home that has the same square footage the same floor plan within my neighborhood sold for 1.5 million dollars just one month ago i valued my home at 1.09 million dollars it turns
Out zillow thought i only had two bedrooms but in reality it’s a three-bedroom place ten years ago it didn’t make that much a difference maybe twenty to fifty thousand dollars difference between a home that has two bedroom versus three bedroom because you still have three rooms the third room is actually just kind of like a work area type of room but recently the
Difference has been so dramatic between a three bedroom and a two bedroom it’s roughly hundreds of thousands of dollars so then now i feel like it’s the time to re-evaluate the value of my home i bring this up not to brag about my net worth increase of my home value because in truth i really can’t sell the place if i’m gonna live here it’s like it’s locked in equity
Unless i’m gonna like move to texas or something then i can’t have access to this money so it’s basically doesn’t mean much to me it’s not like i have four hundred thousand dollars i can go use it in any way which way i want the home price increase is outpacing a lot of people’s ability to earn per year every single year someone could save an additional x amount
Of dollars but the house increase dramatically you can’t even catch up just look at this particular home over here in 2012 it’s valued at 500 000 in 2022 it’s 1.5 million dollars this is one million dollars more in just a short time of 10 years so if you were to buy this place with the down payment or whatever you just keep on making payments just 10 years later
Automatically you’re gonna be a millionaire over 10 years this is a hundred thousand dollars of increase every single year just sitting on your butt doing nothing this is like earning a salary but you don’t have to do any work you just buy the home sit in it live in it for 10 years and wow you’re gonna get all this money as you just do nothing let’s do a quick math
Example here because this is kind of mind-boggling to me the value of the home is 500 dollars you let’s say you need twenty percent down right so you need a hundred thousand dollars that’s your target savings in order to start buying the home i’m not saying you have to have twenty percent right you can pay pmi and pay a lot less percent maybe 10 down maybe 5 down
Even right but let’s say you want to go for 20 let’s say you’ve been saving and you have 80 000 in 2021 and then you’re like oh 20 000 more to go you only need to save one more year so you do it one more year later you have a hundred thousand dollars but the home that you wanted it went from five hundred thousand dollars to six hundred thousand dollars so although
You have your initial target amount of down payment of a hundred thousand dollars now buying the same home is gonna cost you a hundred twenty thousand dollars so you can’t just save twenty thousand dollars a year you have to like really really outpace it in order to catch the next wave if you will to buy the next home for many people who are not crazy savers you
Just live a normal life you know you’re not like a crazy frugal person you can’t save more than twenty thousand dollars i know me as an extremely frugal person working in engineering salary i probably was able to save about fifty thousand dollars a year but you know this is all my money every single penny that i could save is fifty thousand dollars what’s making
All the prices go crazy it’s the money printing trillions of dollars are being printed inflation goes up everything starts rising look at this gas station in menlo park i like looking at this particular gas station it’s like just some weirdness where you know you try to look for the highest price per gallon and then you look at it you’re like oh my gosh shocked
Right but this place in menlo park is selling 6.79 for regular per gallon of gasoline this is just crazy it’s like doubled from what it was just a short maybe a year or two ago so if you want to beat all this you really need to be invested in equities why when the price of everything goes up companies are going to increase the prices of the things they sell when
The stuff they sell increases the revenue increases so therefore the price of their stock increases in lockstep with inflation so you buy equities like vo and sometimes you need to step back a little bit think about this macroscopically who owns equities the most it’s rich people and as we all know rich people just gets richer and richer mainly because of equity
So if you’re not in equities if you don’t buy any of this stuff you’re just gonna stay like in the working class you’re just gonna keep on working year after year every single year you’re earning today’s dollars and you’re spending today’s dollars so if you don’t save any of it and start stocking away into s p 500 stock market index fund right let the inflation
Work for you all of that equities is going to go up rich people also have many income streams but at the same time you can at least take part in a little bit of what they do by having enough equities and i know you know having significant amounts of it is what matters if you are only able to save a thousand dollars a year and buy the stock market index fund it’s
Not going to matter that much because it’s not going to replace your current income it’s not even going to dent it a little bit you know you buy a big screen tv from the games or something and and that’s it so what gets interesting is if you’re able to invest something like maybe 20 30 000 a year into equities you just keep on piling it in year after year and
That i think it’s around the point where it starts to matter where the volume of equities that you buy it’s starting to become somewhat significant it’s going to affect your life now also you probably shouldn’t cash out all the time you just want to buy and hold for a really really long time why because you have to pay capital gains so you just keep on holding on
To it for forever like all the rich people they don’t have to pay any kind of capital gains because they’re just holding unrealized gains so hold as much unrealized gains as you can thanks for watching and don’t forget to give me a like and subscribe for more so you
Transcribed from video
Why My Home Value Just Jumped $400k By BeatTheBush
