Posted on 03/12/2024 1:09:28 PM PDT by where's_the_Outrage?
Homeownership has long been a cornerstone of the American dream. It symbolizes independence, financial security and prosperity — but is it a dream worth chasing?
Not if you ask real estate investment guru Grant Cardone.
“Buying a home without a doubt is the worst investment people can make, yet it’s also the most common one,” he wrote in an Instagram post earlier this month.
“Is it because [of] the lack of knowledge people have when it comes to financial education? Or is it just because too many people are trying to fulfill their American dream?”
Whatever the reason, Cardone says he is on a mission to “change the trajectory.” Here’s what he thinks you should do instead of sinking deep into debt to buy a home......
He gave the example of spending $576,000 on a home that you keep for 10 years. On top of that huge total, Cardone said you’d also have to pay the following fees over a decade:
12%, or $69,120, in broker fees;
10%, or $57,600, in maintenance fees;
20%, or $115,200, in property taxes;
and 70%, or $403,200, to the bank
Those amounts add up to $645,120 — and when added to the original price of the home ($576,000), would bring the total to a staggering $1,221,120.
“A $576,000 home will have to be sold for $1.2 million in 10 years,” Cardone said. “You’re not going to sell it for that, to break even.” .......
Rather than buy a house, Cardone says you should rent where you live and use the money you've saved for a down payment to instead invest in real estate that generates passive income.
He advocates for residential real estate, which appears to have remained strong through the economic turmoil of recent years,
(Excerpt) Read more at moneywise.com ...
You buy a home because it’s a place to live. That’s it.
So you should throw money away in rent rather than invest it in your own equity. No thanks.
The problem is that we are running out of younger people willing and able to afford home ownership. House prices are inevitably going to decline over the next few decades, and we’re going to start seeing abandoned homes, as they already do in Japan. If you’re a younger person who decides to buy a house, do it because you want a house to live in - it’s not going to become the high-yield investment vehicle it was for your parents.
Plenty of foreigners still want US real estate, and that's what keeps prices out of reach for the average American.
You will own nothing and be happy.
No thanks. Rents around CA 2500.00 to 3500.00-which I save each month.
The worst investment is a car, but you still need one.
1. Eat bugs
2. Own nothing
3. Be happy
Stupid!
Stupid!
Stupid!
Buy a home you can pay off in short time.
Don’t buy a car on payments.
Stay out of debt.
By assets.
Don’t Watch TV.
Click Off!
owning a home is NOT an investment, it is a necessity because you need a place to live, trust me I have 3 of them...However I will be selling two and my business and retiring soon.
I started buying cheap houses for cash and renting them out in 2008 now own 14 . I use to be middle class not any more those house have returned a out 20% every year. No job 13vyeard life good
All Lies.
Pure Bull Sh_t
There’s so much wrong with these assumptions, I don’t even know where to start.
My First Choice as a house would not be something over half a million. If that’s the price of a starter home, rents would also be outrageous.
The house we now have is probably about that amount. But we started off with a $90,000 house, paid it off, then went to a more expensive house. And so on and so forth. I never considered any of them an investment, just a vehicle to be able to store some money in to pay for the next house, until we were done moving. Which is hopefully now! Not to mention having a pretty nice place to live. If I was paying rent I wouldn’t be willing to pay $3,500 a month, I would live in some squalid Apartment since I’d be throwing my money away.
I know.
Interestingly, my company vehicles may qualify as an “investment.” I buy each one new and drive it for as long as it lasts. When you keep a business vehicle for 250,000 miles or more like I do, the per-mile tax deductions end up being far more than the amortized cost of owning it.
Yep.
And they pay him the BIG Bucks.
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