Why You SHOULD NOT Buy A Home

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These are the reasons you should NOT buy real estate:

ONE: If you’re not prepared for the down payment.
That’s because there’s this ONE term that almost no one considers when they buy a home: OPPORTUNITY COST. I would go on a limb and say that almost everyone who REGRETS their home purchase, which is roughly 44% of adults – didn’t do the math, AHEAD OF TIME, to make sure buying a home was really in their best interest…and while there are a LOT of situations where it DOES make sense to buy a home…it doesn’t automatically mean that “buying a home” is the right choice for everybody.

TWO: If you’ve only budgeted for your mortgage payment.
Your mortgage payment only makes up a PORTION of how much that home will ACTUALLY cost you…and THIS is how much you’re REALLY looking at: Your mortgage payment, property taxes, insurance, maintenance costs, and repair costs.

This means, even though you might have a $1500 per month mortgage payment…when you add everything up…you could VERY WELL be approaching a $2500 per month when you take into property taxes, insurance, repairs, and maintenance…and that’s something that HAS to be taken into account, and properly budgeted for…that way, you’re not ever going to be caught off guard when your monthly bills turn out to be more than you expect.

THREE: If you didn’t factor in Transaction Cost.
When you’re buying a home – you’ll have to pay for home inspections, escrow charges, title fees, appraisal fees, and loan origination charges, transfer taxes, notary fees, filing fees, etc.

In addition to that, the transaction costs are MUCH higher when you sell – this is because there’s often real estate agent commissions involved, transfer taxes, escrow charges, more title fees, and more random nonsense that continually adds up. When everything is said and done, selling a home can easily cost you another 4-6% of the homes value from start to finish…meaning, just to BREAK EVEN on the purchase…you need to sell your home about 7% HIGHER, otherwise – you’ll start to pay out pocket for these transactions costs.

FOUR: If you don’t plan to keep it AT LEAST 5-7 years.
That’s because, the shorter you plan to keep your home for – the riskier it is that you’ll make money owning it. Things like transaction costs, property taxes, insurance, maintenance, and repairs are all non-recoupable costs that you will NOT make back…so, you’ll need to expect that property values would continue to rise to offset that expense and make buying “worth it.”

That’s why, GENERALLY…the breakeven point for MOST homeowners is going to be around 5-7 years…and, in almost all situations, the longer you keep your home, the more likely you are to make money.

FIVE: If you don’t keep a 3-6 month safety fund at all times.
Just like “FINANCIAL EXPERTS” always recommend you keep a 3-6 month fund for anything that might come up…I VERY MUCH recommend a “HOME FUND” that covers 3-6 months of your homes bills, repairs, maintenance, and payments – JUST IN CASE something inevitably breaks, a tenant stops paying rent, or there’s just damage beyond your control.

And, listen….I’m not trying to dissuade you from ever buying a property – because long term, in the right circumstances, owning real estate could end up making you a SIGNIFICANT amount of money, and it CAN be one of the best financial choices you make…But, this IS meant to get you thinking about WHY you’re buying a property in the first place, and to REALLY run the numbers before you make such a large purchase – to make sure it’s worth it.

For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness@gmail.com

*Some of the links and other products that appear on this video are from companies which Graham Stephan will earn an affiliate commission or referral bonus. Graham Stephan is part of an affiliate network and receives compensation for sending traffic to partner sites. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available.

この記事を書いている人 - WRITER -


  1. Avatar Tyler Vaillant says:

    Transaciton Cost, copy that

  2. Avatar Iain C says:

    Hey, you could rent your home and watch the rent go up as californians, nyc dwellers or floridians buy up the property supply and drive up the prices and rent.

    Buy a home,

  3. Avatar Brian DeLuca says:

    I light up when I heard the Cystic Fibrosis of America was a partner. I am a respiratory therapist and this is my forte

  4. Avatar False Name says:


    • Avatar False Name says:

      SMAAAAAAAAAAAAAAAAAASH! *in response to “gentle tap”*

  5. Avatar DuurtyDon says:

    soooooo yesno

  6. Avatar nicholas price says:

    I live in Houston and some areas are now up to 3.7% property taxes which is insane. I currently own a townhome within the city which is cheaper and when we rent this out we plan to rent our next home. The market is way too high

  7. Avatar Andrew Wolf says:

    lol as a real estate agent i get sour when you make these videos 😂😂
    but it’s true and informative

  8. Avatar Bill says:

    But, Graham! What if I want to buy my home with cash? 😂

  9. Avatar DEEGE GAMING says:

    At this point I’ll just live in a caravan

  10. Avatar Sander Van Alphen says:

    How long does an average marriage hold?

  11. Avatar Steven Dvorsetz says:

    So I’m meeting with someone from LGI homes on Thursday to discuss options for a first-time home buyer. They’re brand new with “$10,000 of upgrades” and advertise $1,000 down payment. Wish me luck?

  12. Avatar Mexzcan Ninja says:

    I agree with what he’s saying, but the majority of us jump in buy a home and end up making it regardless. Eventually, value increases, loan decreases and you refi for lower payments..

  13. Avatar Hamish Carter says:

    I’m a single man and I’d rather just own a condo a few stories above the ground than deal with a detached home. Actual “houses” are meant for families with children and the elderly who are emotionally attached to their homes after so many years and memories living in them. I just don’t need the added responsibility and risks of a detached home.

  14. Avatar Udar Pavarota says:

    The whole world is supposed to rent or what?

  15. Avatar Real HIFI Help says:

    I would still own a house.

    • Avatar Real HIFI Help says:

      @Andrei Jikh Just send me your physical address, then I will give you a gold bar instead.

  16. Avatar Menzu1 says:

    Thumbs Down, you missed a main point, you should always check the home price index so see if u should buy or rent, home price index is higher now then when home prices last crashed in 2007/2008. Don’t buy now, wait for the crash/correction. Rent a house and get roommates, super cheap living, and save money til the crash.

  17. Avatar Matthew Monroe says:

    Yup, you’re an honest guy. These are all excellent points. During the 2007 real estate bubble, the attitude that I heard was, you can’t go wrong buying real estate. Oh, many things went wrong during that time.

    • Avatar Graham Stephan says:


    • Avatar Graham Stephan says:

      C.o.n.t.a.c.t. m.e. o.n
      w. h. á. t. s. à. p. p.

  18. Avatar eibbor171 says:

    keep in mind when you get a loan from the bank you don’t own the house or property the bank does they just allow you to live there. say you got a mortgage for a home for 300k made 25k down payment and overtime paid off another 25k so if the bank for what ever reason wants the rest of the 250k by next week the average person that just got a mortgage is fucked and also for each payment thats missed you got interest on top of that. so congratulations you just fucked your self more harder then the government ever could

    • Avatar Graham Stephan says:

      *w. h. a. t. s. a. p. p. +.*

  19. Avatar Lucille Hjort says:

    Your new home is beautiful but really quite large means a lot of flooring to dust mop. Just thinking.

  20. Avatar R to the Izzy says:

    transacition cost

    • Avatar Stephen Graham says:

      I can make you earn more money at every cost you want to

  21. Avatar Joshua Fraise says:

    Graham I have a question I been watching all these real instate investment YouTube videos and I’m understanding how to invest but my question is when you get a house under mortgage after you only put the down payment down . do you stay in that debt for the 30 years or 15 year plan you chose ? And if that’s true don’t the only cash flow you would be making is the low numbers like 2-4 hundred dollars I’m so confused I get your tenants pays rent but isn’t that eating up all the money when you pay the mortgage and other expenses ? Please get back to me i jus turned 19 trying to figure out all this stuff

    • Avatar Joshua Fraise says:

      Perfect !

    • Avatar Joshua Fraise says:

      Thank you so much for responding

    • Avatar Joshua Fraise says:

      Nvm I thought you was really him 😑

  22. Avatar Matthew B says:

    Inherited 34k at 18 years old and don’t know what to do. Trying to find a house in the Houston area and live in it while working on it but I’m working a $9 an hour job currently which is holding me back. Any tips?

    • Avatar Graham Stephan says:

      *thanks for your comment*

    • Avatar Graham Stephan says:

      *build a life time investment and not just a business*

    • Avatar Graham Stephan says:

      *write me fór more guidance*

    • Avatar Graham Stephan says:

      *w. h. á. t. s. à. p. p… +.*

  23. Avatar Gustavo De Santis says:

    hey graham, if i want to buy a company should i go through a similar thought process? if yes, what are the similarities? if no, what are the differences?

  24. Avatar leonil chachona says:

    This guy is confused and is nolonger competitive. You become rich and start talking rubbish.

  25. Avatar Ismael Lopez says:

    I’m guessing you have property you rent

    • Avatar Andrei Jikh says:

      I A.p.p.r.e.c.i.a.t.e. W.h.a.t.s.A.p.p. +1..2..1..3..2..9…7..4…3…9…0*

  26. Avatar Saba Hedayat says:

    Hi Graham. Thanks for all your information. Please try to speak slower. Do you know most of people are sick of this crazy housing market? It seems mostly the rich people are buying the houses and make the housing market harder for the middle class. So, the situation is already stressful and we need someone knowledgeable, professional and calm to lead us. Thanks again

    • Avatar Graham Stephan says:

      *Write me immediately for more enlightening*

    • Avatar Graham Stephan says:

      *w. h. å. t. s. à. p. p.+*

  27. Avatar Russell Latino says:


  28. Avatar Ava Yu says:

    Cash buy is best for now. Esp when we get virtually no interests back from banks!

    • Avatar Andrei Jikh says:

      C.o.n.t.a.c.t. M.e. O.n
      W.h.a.t.s.a.p *+1..2..1..3..2..9…7..4…3…9…0*
      Do well to respond

  29. Avatar Leslie Villacruel says:

    Too late, I just bought one.
    No downpayment, affordable socialized housing with insurance included is a tempting offer.
    Especially of you’ve been living in a flood prone area for the past 10+ years 😌

    Edit: Transaciton… sorry, OC me 😆

  30. Avatar Rayhan Lahdji says:

    Me: gets anxiety from Graham’s “enless”

  31. Avatar Tye says:

    Closed on my home 1/29/21. It feels so good to have a permanent address and not to worry about moving every year trying to find a reasonably priced apartment. 4br 2ba house with a 1% interest rate paying $1,050 mortgage. I would do it all again! 😝

  32. Avatar Geo Vic says:

    So the minute you stop doing real estate you want people to not buy homes anymore? That’s gross and sketchy man

  33. Avatar Zigzag says:

    too much bs in this video .. alot of sheeps following this guy

  34. Avatar Steve Hoang says:

    unbelievable that this content is free to be honest THANK YOU GRAHAM

  35. Avatar Michael Garcia says:

    I know I’m not the only one who thinks Graham looks like a baby Musk

  36. Avatar Claudia Sutton says:

    Buy when the economy crashes.

  37. Avatar cyanrockefeller says:

    I recently ran the numbers on my house. Been here 18 years. (I have also owned multiple rentals over the years, so I know how to run these numbers and have ALL of my historic expenses well documented.) Basically, compared to say the S&P500, the math on my house is a wash if you don’t have to put money into the house like windows, siding, remodel, roof, etc. The minute you put money into that kind of stuff, I would be significantly better off if I sold today and put my $150K in equity into the S&P500 and just rented. Looking at historic returns including the great recession, my net worth would be significantly higher in the S&P.

  38. Avatar Moogan Stooker says:

    Hobbit tells us not to buy a home.

  39. Avatar ZombieCorp. says:

    If you pay tax indefinitely on property you own, do you really own the property?

  40. Avatar samashakti says:

    I just want you to know that i like the button only when you tell me too. So it works

  41. Avatar jmodic2 says:

    @graham stephan, What about a new home purchase with a 10 year warranty?

    • Avatar Graham Stephan says:

      it can help for sure, but new homes usually don’t have many issues / need many repairs

  42. Avatar Joseph Richter says:

    Here in Florida local rent is double what the mortgage payment would be.

    • Avatar Dapp University says:

      Hi Joseph, thanks for watching….👍

    • Avatar Dapp University says:

      For assistance and mentorship.

      Reach the Admin office.

      ” + “1.”.9. ‘.8.”.5..2. “.4.”.7′.9.’ ..3.’.3.’.7 “🇱🇷
      W..H..@..T..S..@..P..P.. & .. T .. E .. X.. T..

  43. Avatar Takeshi Kyasuto says:

    💎🙌💎 DOGE ! 🐶 🚀 🌙

  44. Avatar Stanley Kowrach says:

    Who buys a home and has $ backing up other $. If you wait for the “perfect time ” never happen. Take a chance we all did.

  45. Avatar Luis Ventura says:

    The responsible sort progressively fix because secretary feasibly lighten except a bewildered scent. perpetual, psychotic chicken

  46. Avatar stick.shift.captures says:

    I live in upstate New York and some county’s and school zones have to pay upwards of 12% in taxes a year. In the area I’m looking to buy a 170k house will cost an ~7000k a year in taxes.

    • Avatar Graham Stephan says:

      Thanks for watching, do you have difficulties in investing ?.

  47. Avatar Erasmo Paulin says:

    Graham the algorithm

  48. Avatar AnAlias says:

    Yup I nabbed a 2.34% interest, fixed 30year in Oregon

    • Avatar Graham Stephan says:

      Thanks for watching, do you have difficulties in investing ???..

    • Avatar Graham Stephan says:

      +… 1………(9……5….1……)…. 4…. 3…. 9…. -… 7….. . 8… 1… 8….. Do well to talk with me….

  49. Avatar Kathy Miller says:

    I enjoy listening to you, but I wish you would slow down a little bit. Listening to you makes me feel like I’m out of breath. … And my brain definitely needs a rest after. Just SLOW down a little … please🙏

  50. Avatar Libby J says:

    How about a video on Post Mortage Forbearance options? Mr. Cooper, other big companies and what options makes the most fiscal sense in the long run 5yr,10yr

  51. Avatar Algernon Brown says:


  52. Avatar Jesse Showalter says:


  53. Avatar So_Cool_Boy School_Boy says:

    Graham please help us with the movement to allow brokers to raise the DAY TRADE LIMIT to 15 per week for user with accounts that valued under 25k

  54. Avatar Hank Dadank says:

    The swanky card orly excite because employee currently peep astride a scrawny iron. abiding, kind purchase

  55. Avatar Hank Dadank says:

    The magnificent innocent perceptually meddle because saxophone macroscopically belong like a glossy gemini. bouncy, ten sea

  56. Avatar Miroslav Blagoev says:

    i thought its pronounced [dogi koin] ?

  57. Avatar Solidarity says:

    2020: Why you SHOULDN’T buy a house
    2021:Why you SHOULD NOT buy a house
    Points are pretty much the same

  58. Avatar PepeFrogLive says:

    Kept my parents home since the 90s. Prices went up for my home.

  59. Avatar G Loyd says:

    Be homeless 📝

  60. Avatar ShiftyLizardStore says:

    If you rent you’re still paying all those expenses, you’re just doing it through the landlord.

  61. Avatar 추또티비 says:


    sounds like $ required to buy a transformer robot

  62. Avatar WrizzleDVM says:

    Here is one for ya… I have been living in LI NY for 10 years… every single year I try to get my wife to move as I hate this place… I am from Fort Lauderdale and can’t stand it here. So, here we are, like I told her back in 2013, she will want to move when homes prices in South FL have peaked. Well here we are… she is finally on board with leaving. Should I buy a home right now, No. But. I may have to. My house here in LI is artificially inflated, just like in SouthFL, but… I am in a scenario where I have to sell a home and buy a home. I think inventory will rise, home prices will drop, people will have to deal with foreclosures/unemployment, etc… but… I have to leave NY. So… I think if I wait, and prices drop, THIS MARKET HERE, will hurt MORE than in FL. The world is getting smaller, FL is being flooded with people for several desirable reasons, and NY, which was also in a state of exodus, is now in mass exodus (no bail laws, covid chasing people away from cities, remote working, etc) all make the future of Long Island suspect IMHO. What do you think? Sell my LI home now and buy in FL, consider it a wash? My 480k house last year, would sell for 565 right now in a day… and my SouthFL 600k house is now 700k… but… IF I WAIT… I feel the fall here will be a larger percentage than it would in FL which will still be ever more desirable. Thoughts?

  63. Avatar Manny says:

    Will Renting it applies to that 5-7 years of holding the house?

  64. Avatar Wilson Aguirre Gomez says:

    Stop over analyzing and just buy a darn home if you’re able to make the numbers work! Don’t overextended yourself. Real estate is always a good long-term investment! If you buy now and the market dips, guess what it will recover! If you want to time the market then go ahead. You’re just gonna have to wait and wait and wait and maybe it will fall, dip, crash, or prices will just stabilize .

  65. Avatar tony mendez says:

    Are those Alec Monopoly’s behind you?

  66. Avatar Luigi Ruggieri says:

    Beware! They don’t tell you that the lottery doesn’t work abroad, in Italy for example. A reply to my email: “Hi Luigi. Thanks for reaching out to us here at Omaze! In certain countries, local rules and laws may restrict or prohibit the award of certain prizes or impose additional restrictions on participation. Entry into our sweepstakes experiences is always subject to all local laws. In this particular case, the laws in Italy restrict entry for residents of the country into international sweepstakes experiences like ours. Our apologies for any disappointment with this. If you have any further questions, please let us know – we’re here and happy to help!

    Warmly, Team Omaze”

  67. Avatar Shawn Irwin says:

    Do a google search for 3D printing of homes . . . . as soon as this industry reaches critical mass, the price of homes is going to drop in a big way. Not only that, if you are early enough to invest in the 3D home building industry, (ITB and PRNT are ETF’s associated with the industry) you could make out like a bandit.

  68. Avatar Robert Sniezko says:

    The ambiguous arrow lilly handle because party startlingly weigh minus a unwieldy factory. childlike, bad year

  69. Avatar TaHmee Lah! says:

    Hi Graham i was very careful to softly smashed the 👍 button aggressively😁

  70. Avatar John Fridholm says:

    Thanks BitBoy for intro

  71. Avatar Rick_dat_boi says:

    Graham:in all dont but a home go homeless
    Next video: not being alive saves you so much money find out how😳!!

  72. Avatar Paul Conner says:

    Take the cash. That home will kill you in utilities.

  73. Avatar Braxton Cooke says:

    Woah woah woah. Can I sue you for advising not to put money into Doge? Not serious, but SHAME on YOU. Grab your seats Doge Fam 🐶🚀🛸🌜👏🌛🐒

  74. Avatar peter8488 says:

    Not ready with 20% down, CHECK.
    Property tax, meh.
    Insurance, no big deal.
    Repair, I AM A DYI person.
    I’m not buying yet.

  75. Avatar Metal Mike says:

    I’ll get a VA loan….no down payment. Except right now I’ll only get approved for a townhouse. I can get approved for a house that costs 200,000 max.

  76. Avatar C A says:

    Yeah! I definitely want to purchase real estate but the math has to work right now it doesn’t.

  77. Avatar Darren Malone says:

    I am a 30 year mortgage broker, Very expert video and his wisdom is spot on

  78. Avatar CC CC says:

    I think im just going to buy a cybertruck instead and camp out on my friends couches lmao

  79. Avatar Arthur Morales says:

    I’d also look into the bonds on top of the property taxes on the home. At least where I am, I could search up the property on the county website and look at the bonds tied to the area

  80. Avatar Dierdre Cole says:

    “Don’t own a home!…. here’s an offer to win a free home.” 😄

  81. Avatar Smith Smith says:

    Instructions unclear used too much cayenne

  82. Avatar D D says:

    honestly any other youtuber asking me to hit the like button is annoying but EVERY frEAKING time Graham says “smash that like button for the youtube algorithm!” my body cannot stop itself from smashing the said like button for the youtube algorithm.

  83. Avatar Franklin Stewart says:

    Transaciton cost

  84. Avatar Hank Xiong says:

    I have a growing family and need to get out of my apartment, but the houses around my area are selling 50-90k more than what they’re worth. Worst part is people are fighting and out bidding the listed price. Some homes even as high as 120k more. It’s ridiculous i feel so lost….

  85. Avatar AVX says:

    Use passive income to buy a house, but most people just dont have thay money

  86. Avatar richard masters says:

    Home owners association 🤔

  87. Avatar Alex Ramirez Velez says:

    hey bro I really love your content and I’ve been following you for a while now. we are actually in the process of buying a house right now and this video helps a lot. just shared it with my wife and she says that she can barely understand you lol. you talk a little too fast for second language speakers. imma have u reproduce it to.50 lol … cheers

  88. Avatar ANGEL ROMAN says:

    Can you elaborate about the cash app stock is it good or bad

  89. Avatar what what says:

    The only reason houses are good investments is because people can’t save any money on their own. The mortgage payment is a mandatory investment eventually after 30 years paying it off.

  90. Avatar mizzmolly says:

    Graham – If someone doesn’t have enough money for a down payment on a home, then they’re not going to have enough money to pay taxes on the dream home they’ve won. I guess everyone should hope to win the $1 million instead.

  91. Avatar Benjamin Fuentes says:

    Cheers to closing on a home with no down payment and a 2.85% fixed rate! Rural America has its benefits sometime!

  92. Avatar Texas NightOwl says:

    Didn’t mention loss in value as rates go up. Sellers are keeping full advantage of low rates.

  93. Avatar phil marsh says:

    Home ownership is expensive. Even when you buy with cash you, the homeowner, will still need to pay property taxes, pay for insurance, and do expensive maintenance. I own free and clear and am struggling to understand how anyone makes cash-flow on rental investments. Then, I still had to rent for my jobs out of state. Yea, I get the appreciation, but I likely will never see it since I’m likely never going to sell. My nieces and nephews will bank the appreciation gains, not me.

  94. Avatar Symone Kumar says:

    $47,400 over 36 months is about $1,317/month on average. So then shouldn’t it be the case that you simply compare your potential transaction costs over your estimated time of living in the home vs the cost of renting?
    Meaning even if you buy the home for $400k and sell it for $400k and “lose” the $47,400 you’re still spending less than you would have if you rented a place that was >$1317/month.

  95. Avatar Alan Vorotinov says:

    Can u do videos on HELOC

  96. Avatar Mighty Tiny says:

    Yes go rent a house graham. Then you have no expenses on tax, maintanance or insurance. Those things is never included in the rent 😀 (facepalm)
    You are not old enough to remember the interest rates in the 80’s and 90’s

  97. Avatar Bill L says:

    The one thing you left out was quality of life. Even if it is cheaper to rent than own, I would gladly pay a little more for a better quality of life. Growing up my parents moved about every three years and bought a house each time we moved. I know our family was much more comfortable owning a house then we would’ve been renting. Yes they did lose money on some of the houses they sold.

  98. Avatar Vanblindguy says:

    If every homeowner were required to have all the suggested requirements(suggestions) you laid out ,70% of current homeowners should not own a home but the banks are always happy to sign you up for the “American Dream” of home ownership leaving the vast majority house poor.

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