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'The worst investment people can make': Real estate guru Grant Cardone says too many Americans are chasing after the dream of homeownership. Here's what he thinks you should do instead
moneywise ^ | sep 27, 2023 | Bethan Moorcraft

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 ...


TOPICS: Business/Economy; Chit/Chat
KEYWORDS: conman; grantcardone; homeinvestment; homeownership; realestate
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This guy may be smarter than me but I would not follow his advice. Part of the issue that if you don't own your home you are losing rent, insurance and not putting down roots to live.
1 posted on 03/12/2024 1:09:28 PM PDT by where's_the_Outrage?
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To: where's_the_Outrage?
He’s right in one respect: Nobody should buy a home as an investment. It’s one of the worst investments you can make.

You buy a home because it’s a place to live. That’s it.

2 posted on 03/12/2024 1:12:32 PM PDT by Alberta's Child (If something in government doesn’t make sense, you can be sure it makes dollars.)
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To: where's_the_Outrage?

3 posted on 03/12/2024 1:13:00 PM PDT by Magnum44 (...against all enemies, foreign and domestic... )
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To: where's_the_Outrage?

So you should throw money away in rent rather than invest it in your own equity. No thanks.


4 posted on 03/12/2024 1:13:35 PM PDT by ProudDeplorable (Concentrated power has always been the enemy of liberty. ~ Ronald Reagan)
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To: where's_the_Outrage?

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.


5 posted on 03/12/2024 1:13:37 PM PDT by AnotherUnixGeek
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Comment #6 Removed by Moderator

To: AnotherUnixGeek
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

Plenty of foreigners still want US real estate, and that's what keeps prices out of reach for the average American.

7 posted on 03/12/2024 1:14:26 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: where's_the_Outrage?

You will own nothing and be happy.


8 posted on 03/12/2024 1:14:38 PM PDT by Baldwin77 (DJ & JD 2024 (Trump-Vance))
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To: where's_the_Outrage?

No thanks. Rents around CA 2500.00 to 3500.00-which I save each month.


9 posted on 03/12/2024 1:15:12 PM PDT by Mark (DONATE ONCE every 3 months-is that a big deal?)
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To: Alberta's Child

The worst investment is a car, but you still need one.


10 posted on 03/12/2024 1:16:06 PM PDT by dfwgator (Endut! Hoch Hech!)
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To: where's_the_Outrage?
Recommend:

1. Eat bugs

2. Own nothing

3. Be happy

11 posted on 03/12/2024 1:16:49 PM PDT by MtnClimber (For photos of scenery and wildlife, click on my screen name for my FR home page. More photos added.)
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To: where's_the_Outrage?

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!


12 posted on 03/12/2024 1:17:23 PM PDT by Texas Fossil (Texas is not about where you were born, but a Free State of Heart, Mind and Attitude.)
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To: where's_the_Outrage?

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.


13 posted on 03/12/2024 1:17:37 PM PDT by eyeamok
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To: Alberta's Child

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


14 posted on 03/12/2024 1:18:48 PM PDT by genghis (Cathinkngact only re check ason go after e puthatn 5nu0 inbbiedComlpln)
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To: MtnClimber

All Lies.

Pure Bull Sh_t


15 posted on 03/12/2024 1:18:51 PM PDT by Texas Fossil (Texas is not about where you were born, but a Free State of Heart, Mind and Attitude.)
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To: where's_the_Outrage?

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.


16 posted on 03/12/2024 1:19:29 PM PDT by CottonBall (The only thing necessary for the triumph of evil is that good men do nothing.)
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To: Texas Fossil

I know.


17 posted on 03/12/2024 1:19:29 PM PDT by MtnClimber (For photos of scenery and wildlife, click on my screen name for my FR home page. More photos added.)
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To: dfwgator
A car is a tool, not an investment. When you factor in the value of what you can do with your car, it pays for itself many times over.

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.

18 posted on 03/12/2024 1:19:56 PM PDT by Alberta's Child (If something in government doesn’t make sense, you can be sure it makes dollars.)
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To: where's_the_Outrage?
No body should buy a home.

Homes are built for Banks. People, not so much.

19 posted on 03/12/2024 1:20:50 PM PDT by C210N (Mundus vult decipi, ergo decipiatur.)
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To: MtnClimber

Yep.

And they pay him the BIG Bucks.


20 posted on 03/12/2024 1:20:56 PM PDT by Texas Fossil (Texas is not about where you were born, but a Free State of Heart, Mind and Attitude.)
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