Global Macro Update Why Your Landlord Is Getting RICH (And You're Not)
Sep 12, 2025
Barry Habib, founder of MBS Highway and a leading mortgage expert, passionately discusses how homeowners often have 40 times the net worth of renters. He shares insights on mortgage rates potentially dropping below 6% and warns of the supply-demand issues plaguing the housing market. Habib also delves into AI's looming threat to job security and its implications for homeownership. Additionally, he sheds light on the challenges young buyers face in an evolving job market and the complexities of real estate as a vehicle for generational wealth.
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Homeownership Is The Primary Wealth Engine
- Homeownership creates two-thirds of typical net worth and dramatically outpaces renting as a wealth generator.
- Barry Habib says homeowners' net worth is about 40x that of renters, driven by leverage and appreciation.
Keep Housing Costs Near One-Third Of Income
- Aim to keep housing costs around one-third of gross income for sustainable affordability.
- Barry Habib advises getting into homeownership early to benefit from forced equity and tax advantages.
Use Low Downpayment Options And Investment Depreciation
- Don't assume you need 20% down; explore low-down programs to enter the market sooner.
- Barry Habib notes investment properties offer depreciation and cashflow benefits that can shelter passive income.