next guest says buying a home but still
a good investment however the real
estate market faces challenges
mortgage rates for year high there's not
that many homes for sale we've got a new
report by the way it says spring home
sales will be the weakest in years as a
surprise samantha debianchi willis from
the DB aki a real estate company all
right Samantha the it seems to me that
there's plenty of people who want to buy
but there's not that many homes to buy
there's not inventory as you guys say
that's the situation isn't it right that
is exactly the situation so we're seeing
a really interesting market because
there is a bit of a slowdown and while
we do have very little inventory we have
a lot of demand but prices are so high
right now so what's happening is a lot
of people are resorting to renting now
they're not just renting annually
they're renting seasonally they're
renting monthly I'm having people say
look you know I want to buy I'm ready
willing and able but I don't want to
spend these prices and it's funny
because we could talk about mortgage
rates all day long but that is not the
reason because a 30-year fixed right now
is at 4.4 6% this same week last year it
was at 4.2 1% so we're not seeing crazy
mortgage rates but we are seeing crazy
prices okay but there is also this
ongoing argument that buying a home is
not these days the best investment I
mean for a couple of generations three
or four generations that was what you
did you grew up you got into your 20s
you're married yet Jory you bought a
house that was the deal that's no longer
the deal people no longer believe that a
home is the best investment that a young
young folks can make well there's an
argument there I mean first and foremost
whenever you read any of those reports
or analysis the one main thing that all
of them will say is if you buy the right
house at the right time in the right
place at the right time and again at the
right time it is a great investment you
know buying a home is the riskiest
riskiest investment out there it's not
an episode of house hunters so you need
to take it seriously and you know I'm a
great example I don't buy just houses I
don't just buy homes i buy houses so I'm
buying and
I'm making crazy returns I'm air being
being them you know I'm making $25,000 a
year just on income from all of these
properties and I'm selling them every
two to three years when a lot of reports
say that the average homeowner
owns their home for ten years well yeah
it's really hard to predict a real
estate market in a ten year period but
when you're looking at it year by year
and you're thinking okay this year if I
sell I'll make some money then yeah
maybe you shouldn't be as emotionally
attached but all day long you can make
money in real estate if you time it
right and it always comes down to timing
the way way with respect the big
argument for youngsters to buy a home is
the tax deduction on the mortgage
interest I mean I know the fact that
that deduction has been limited for the
way upper income people and for the very
luxurious homes but the principle
argument is the best tax deduction you
gonna ever get in your first 10 years
out on the road on your own that is the
mortgage interest deduction that's the
biggest winner as a homebuyer surely
that's the big argument sure I mean we
could argue that all day long but if we
go and say okay so then you should rent
if a one-bedroom is dollars I'm sorry I
said don't run you buy okay yeah I mean
I'm agreeing with you all day long it
does make sense to buy but again you've
got to sell at the right time you will
it will make more sense to rent if
you're not going to buy and sell at the
right time if you're just in it and
saying look I want to buy a house I
don't necessarily care about the
investment or the return or anything
like that I want to plant my roots here
I want to you know spend money on
improvements that it may or may not need
then yeah it's gonna be a money pit you
probably will never see that money come
back but if you buy right at the right
time you put I mean you could put five
ten percent down you still have some
deductions that you can write off so
that's not just saying that they don't
exist at all it's just limited but you
know when you look at rinsing you're
maybe saving money but I would love to
know the percentage of how many people
with that saved money use and spending
it on trips
and other things that they wouldn't have
before I guess on old fashioned I still
think that buying home was the best
investment that a youngster can make
capital gain a hundred reduction is the
best one you can get I don't care about
the timing or buy the right house the
right time in selling I don't care buy
the house that's my position I've made a
lot of money in real estate so I'm a
believer in that oh I'm glad to hear it
Samantha come back and sit with the
argument we'll continue