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“We’re Paying Double What It Would Cost to Rent” | IWT 111 OUT now! #personalfinance #housebuying

9 Jul 2023 · 0 min

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0:25

A short segment of a Ramit Sethi YouTube video in which he interviews a guest about recent housing costs. The guest reports previously paying about $1,800/month in rent, now paying about $5,000–$5,500/month (with planned $500 annual increases), and that renting a similar house would be about $3,500/month. Ramit highlights that buying is not always cheaper than renting.

Questions this video answers

About $1,800.

Approximately $5,000 to $5,500 per month.

About $500 per year for the next two years.

About $3,500 per month.

What was your monthly payment on the place you were renting right before this?
Paying about 1,800.
And now what are you paying this year?
It's probably going to be like five, maybe five and a half.
That's a huge jump. More than double.
Next year it's going to be going up 500. And then the year after that, it's going up 500.
No, no, that can't be. Because everybody tells me that real estate allows you to lock in your price and you never pay more. That's what the Internet told me.
I think it's about 3,500 to rent a similar house. So we're already paying more than it would cost to rent.
So just so everybody understands, people go, it's always cheaper to buy. No, it's not.