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Own vs Rent on CNBC Financing the American Dream in Blackrock, CT - YouTube
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Jay Talisano here with another
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episode of Financing the American
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Dream, and today we are coming to
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you from a little seaside community
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known as Black Rock.
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Black Rock is part of Bridgeport,
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Connecticut. Today, we'll be meeting
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with Kaitlyn Walsh and top producing
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Realtor with Denise Walsh and
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Partners. We're going to be talking
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about renting versus owning
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and what's been going on in the
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market over the past few months.
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Let's go meet up with Kaitlyn.
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All right, now we're on site with
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Kaitlyn Walsh. Kaitlyn, thank you so
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much for being here today.
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Yeah, excited to be here.
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So, looking forward to talking about
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the real estate market.
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It's been crazy busy.
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A lot of people have been renting,
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but a lot of people have been
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buying, multiple offers.
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Tell us what's going on.
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So, the rental market has always
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been pretty consistently busy in
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Black Rock. It's a beautiful place
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to live. We have a huge
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slew of buyers and renters coming
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from New York City that are moving
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to Connecticut.
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Interest rates are low, so there's
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already more buyers in the market.
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Same thing with the rental market.
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Both are busy.
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But why don't we go inside and check
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out this apartment?
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All right, let's head on in.
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So we're here in a two bedroom,
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one bath apartment.
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We're seeing apartments like this
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flyoff. They're only on for a couple
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of days on the market, usually
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before they start to get offers.
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The interesting thing is that
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we start to talk to people about
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whether they could buy something
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like this and what that means for
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them. So I know you have your own
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thoughts on renting versus buying.
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Well, of course, my preference would
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be that someone buy their own home,
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right? It's the American dream.
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They can build equity, tax deduction
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and the American dream of owning
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your own home, right?
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So I prefer to see people buy.
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I think you may, too.
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But...
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You and I are on the same page.
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Yeah, exactly.
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Well, why don't we head over to
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Harborview, a little hotspot, and
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kind of talk some of the numbers on
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what it looks like for someone to
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rent or to own.
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Because I will tell you, I've been
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doing a lot of analysis and what
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people think they're going to go
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rent for, they can ultimately end up
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buying a home for.
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Let's promote homeownership.
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Sounds like a plan.
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All right. Let's head on over.
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All right, Kaitlyn, now let's dive
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right into the numbers.
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OK, so that home
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that we were in is probably around
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$300,000-$350,000 would you say?
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Absolutely.
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OK, so I worked up some numbers
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and I ran numbers on a
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$325,000 purchase, with close to
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$12,000 down and total out of pocket
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would be about $23,000.
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That's down payment plus closing
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costs. The payment here is $2,400
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a month. So we know that unit would
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rent for about $2,000.
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Someone can buy it for $2,400.
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What's your take on that?
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That's a fantastic point.
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They're building equity.
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They're not giving someone else the
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money to pay their mortgage.
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The flip side of that is with that
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particular apartment, that $2,400
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is before calculating any rent
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from the second apartment, so you
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could potentially live there for
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under $1,000 a month.
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But when you look at the other price
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points as well, lets say single
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family is upwards of the $500,000
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range, the numbers start to get
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really competitive.
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So in some cases it's actually less
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expensive to buy the home than to
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rent it in the first place.
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And I've even done these rent versus
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own comparison on million dollar
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properties for agents often.
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And it's like eye opening when you
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see, OK, I can pay X for
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rent or Y to own it, and the numbers
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are really comparable.
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Yes, you have to have the down
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payment money, but a lot of these
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folks do.
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They just don't realize what goes
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behind the numbers.
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Exactly. And in the higher end price
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points, we're actually seeing a huge
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boom in the rental market.
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So in a lot of cases, it's
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significantly less expensive
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to buy it than to rent it.
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I want to touch on one last thing
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before we sign off here, which is
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the market is super busy, multiple
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offers. And I know one of the things
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that you really pride yourself on is
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setting up that initial offer that's
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going in so that the I's are dotted
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and the T's are crossed.
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And that's not just a saying.
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It's real. Tell us about that.
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You couldn't be more on point
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with this. It's not just one or two
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people that you're bidding up
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against now. It's 9, 10, 12
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offers on the table.
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So one of the things that you can do
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to really make your offer stand out
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is make sure #1 that you got
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pre-approved by somebody that has a
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great reputation.
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It's a huge part of the offer.
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A little personal letter doesn't
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hurt your situation either.
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And just making sure that you're
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doing everything you can to present
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a really compelling package to make
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yourself stand out.
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You have to be buttoned up, multiple
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offers. You know, people writing
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offers on the hood of the car,
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barring any snow like we had today.
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As long as it's legible.
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Yes, exactly.
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But I know, the real estate market
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is crazy. I think it's going to
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continue to be crazy this year.
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I don't know what you're seeing, but
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the numbers are still up.
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No one can predict the future, but
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I don't see any sign that this is
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going to stop anytime soon.
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The activity is really consistent
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and a lot of it's driven by super
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low inventory and that's not really
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changing.
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So the demand is growing,
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the inventory is staying pretty
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stagnant. I see this lasting for
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a while.
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Listen, I want to thank you very
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much for giving us a little bit of a
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tour of Black Rock and the real
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estate community. We're here at
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Harborview, a hot little spot
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that I know my family loves to come
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to for breakfast.
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Absolutely.
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So really appreciate you being here.
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Keep doing great things out in the
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market. OK?
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Thanks. Great to see you.
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All right.
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And that's it. And that's a wrap for
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the American Dream TV and financing
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the American Dream coming to you
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from Blak Rock, Connecticut.
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