Grant Cardone claims that houses are "not investment, that is the cost, by definition" - "I would rather pay $ 2400 rent than $ 2400 mortgage"

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Grant Cardone created a real estate empire worth several billion dollars, but he is not interested in having a roof over his head. A pronounced investor, known for the purchase and management of thousands of lease units, decides to rent his or her primary place of residence – and says you should.

“I would rather pay $ 2400 rent than $ 2400 mortgage,” he told YouTuber Kevin Coney, a clip that has since made Tikkok rounds. “Because I can of this rent every 10 months. That mortgage is 30 years old.”

For many American houses, the cornerstone of the American Dream stone must be. Cardone is just a responsibility wrapped in granite countertops. He does not see at all the place where you live as a financial assets.

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“If you live in your home and pay home spending, it’s not an investment,” he told Coney. “These are the cost of definition. And, by the way, your home should not even use your net value statement.”

Coney agreed, emphasizing the hidden costs that are often blind homeowners. “Our refrigerator break, I put a little thing on our portal; the new refrigerator there is dolls,” he said. “It’s a fixed price.” He added that his friend always beats his chopping for paying a $ 4,700 rent and a friend pays $ 3,500 for a mortgage, but he does not need to decide the cost of repair or surprise is worth the premium.

Cardone supported him by saying that a friend did not make all mathematics. “He does not calculate his HOA taxes, does not calculate property taxes, does not calculate control insurance, does not calculate supervision,” he said. “This is 1% per year. Property taxes 2% per year. So it is 3 points each year.” And then there is a mortgage interest. “Choose the number. They all suck a buddy,” he added, indicating rates that can range from 3 to 7 percent.

Those costs are not imagined. According to Banking, hidden costs associated with ownership of a single family house are now on average over $ 21,000 a year to mortgage contributions. From real estate taxes to repair, this is a long list of things that drain your wallet without creating property.

Cardone’s position is not about debt avoidance – that is, about what pays it. “I would rather pay 7% for the mortgage, which the tenant pays than 3% of my home I pay,” he said. In other words, he is doing well – as long as someone else covers it.

This is the mindset he has repeated for many years. 2019 In an interview with DJ Vlad Cardone, one of my most memorable inserts presented: “I treat home as hospital-you enter, you go out.” His reasoning was blurred. “You can live in a house for 15 years with a 30 -year mortgage and still owe what the house was worth when you bought it or worse.”

Critics quickly refer to that Cardone profit directly from this philosophy. By encouraging the public to rent the public, it broadens the tenant pool for the property rights themselves. The cash flow goes to him, not the tenants. But even if its motives are independent, the model is difficult to argue-it is a matter of property, renting it and allowing someone else to create your wealth.

This formula was previously used for magnates with deep pockets and real estate managers’ rolodex. Upon arrival, permanent people get involved in the game – having a lease house, without lifting a wrench or hunting tenants. You can start with $ 100 before they handle headaches and collect passive income.

Cardone does not rule out the value of the home ownership – if the purchase of a house is in line with your goals, that’s great. He simply emphasizes that renting does not deserve stigma, which she often wears. For some, this is a smarter financial step. For others, this is due to flexibility, avoiding repair of headaches or not wanting to chase contractors every time something breaks. Perhaps it is not related to the mortgage when life changes. Whatever the reason, property is not the only way and rent does not make your choice of comprehension.

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Grant Cardone claims that houses are “not investment, that is the cost, by definition” – “I would rather pay $ 2400 rent than $ 2400 mortgage”

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