Grant Cardone Proves why personal homes are BAD Investments
HTML-код
- Опубликовано: 2 июн 2024
- #house #realestate #motivation
I MESSED UP WITH BUYING THIS HOUSE...
I know a lot of you guys are ragging on me because I always say... "NEVER BUY A HOUSE"... And then I go and buy a couple of waterfront mansions...
I still think buying a house is stupid... Whether it cost $40 MILLION or $400,000...
Watch this video and post in comments
Be Great
~ GC
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
Home prices will come down eventually, but for now; get your money (as much as you can) out of the housing market and get into the financial markets or gold. The new mortgage rates are crazy, add to that the recession and the fact that mortgage guidelines are getting more difficult. Home prices will need to fall by a minimum of 40% (more like 50%) before the market normalizes.If you are in cross roads or need sincere advise on the best moves to take now its best you seek an independent advisor who knows about the financial markets.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
'Carol Vivian Constable, a highly respected figure in her field. I suggest delving deeper into her credentials, as she possesses extensive experience and serves as a valuable resource for individuals seeking guidance in navigating the financial market.
She appears to be well-educated and well-read. I ran an online search on her name and came across her website; thank you for sharing.
Most dont buy a personal home for the best return on investment. We buy it for enjoyability and comfort. And we buy investments to pay for that luxury.
LOL. Come to Canada, Everyone thinks they can buy a house and make $500k in 2 years here. No one buys as a home here anymore.
Also, still renting is not as if you better off it is not as if renting is going to make you money.
With smaller houses, buying is better than renting.
It's ridiculous to say that renting is better than buying.If you rent, you definitely not making any money. If you buy a certain type of house there is a great chance that at the end when you sell it you would make some money.
I don't think owning a house It's going to be an impediment for people that need to move to be able to invest in more real estate.
People Really buy a house for Privacy and for the private Parking and Comfortability because remember when you live in a Building you have Neighbors that live upstairs from you and downstairs from you and even on the sides of you so your surrounded by noise and then Don't forget about the parking when you live in a building alot of the times it's street parking Not all buildings have a garage in them
Renting is the biggest loss average rent time for a renter should be 3 to 5 years no more than that BUT within those 3 to 5 years you should have a plan for buying a house or a Condo if your renting more than 5 years you lose the only person that wins is the Landlord/owner of that building because you get some tenants that don't know no better and they start fixing up a rental apartment I've seen it happen and then when it's Time to move out now the Landlord has New stuff in that apartment and now can rent it for more money because HE will tell the new Renters that he just did some renovations too the apartment 🤔🤦♂️
@@awhs5435 ᴛʜᴀɴᴋs ғᴏʀ ᴡᴀᴛᴄʜɪɴɢ... ғᴏʀ ᴘʀᴏᴘᴇʀ ɢᴜɪᴅᴇʟɪɴᴇs, ɪɴsɪɢʜᴛs ᴀɴᴅ ᴍᴇɴᴛᴏʀsʜɪᴘ. ᴘʟᴇᴀsᴇ ʟᴇᴀᴠᴇ ᴀ ᴍᴇssᴀɢᴇ 📩📩🔝🔝🔝
Agree with this 100%. I live in a small minor dwelling on the back of another property I own. It's all about building up my future cashflow right now for total financial freedom. I am 3/4 of the way to my next goal because I still live as if I am hustling!
Thank you for breaking this down - I appreciate the candour, as I can learn a lot by seeing the numbers! Especially now in Australia with housing crisis and rents going through the roof, I felt stressed wondering when the 24% rental jump each year was going to stop, and I was tempted and started entertaining the idea of buying a home - but now I feel it's still better to not own a property like this. If I can't write it off, and there's no cash flow = don't do it. Cheers Grant for dropping the veil, sharing your personal experience and putting your choices in front for everyone to see - getting the right information is so critical to success. Keep doing what you're doing. Awesome stuff! Have a great week 🙂
I love how you keeping it real always thank you uncle G!
I am now seventeen years old and I have never even dreamed of finding a better mentor for myself! I adore you and bow before your great strength of spirit.I dream of becoming like you. I hope that we will meet in the future. I promise
Same here. Never had someone with same age and mindset. If you want let’s get in touch and talk some datasets 👽
It’s a scam foo
Hey Second Here❤ Happy Sunday. Always great info😊
This is a good counter balance video. Whenever I get swayed in one direction, Grant, you bring me back to a good head place. - I want a hacienda with land, but I've got to keep my head down and get the work done with my invesment momentum before I turn that idea loose. Thing is, I want to enjoy it when my kids are still with us. They're already 9 and 4. I don't want to delay in getting our dream house, but I've got to put the right time in to make sure we're going to be able to still live in freedom after we pull the trigger.
On the $40 million home in Malibu, not only would I make money. I can write it off on my taxes. Your a smart man. How am I able to do it! I learned from Billionaire’s how to make money off personal homes. Why tell your audience buying personal property is wrong, when it’s not true?
All of the cost are tax deductible. Remember this house is in California.
I hear buyer’s remorse coming from you.
Thx Uncle OG. Wise advice.
Thanks for the info , good way to look at it ,
I bought my house with 10% down, it has gone up $200K in 5 years. It has been a good investment. Or I could have rented and have nothing to show for my monthly payments except making a landlord richer. Everyone's situation is different, generalizations don't work. I already own 2 paid for houses, the one I live in has a mortgage.
This is gold.. Hard to find a clearer and more straight to the point video about the topic.. I think even the most strong “own property” supporter would change his mind after seeing this
Hi!! Thanks for all the hard work. I’m learning a lot. I wish you could have all of this information in Spanish. I’m pretty sure South America needs to hear this!! 🙌🏼
Dropping game bro. Those that know, know 😁🤝❤
A bad investment is never buying a home and renting your whole adult life life most people because they say couldn’t afford it. Yet for 40+ years all that money loss…………..
You are correct! Buy where you live.
Rewatch the video. No offense but you didn’t understand what he just taught you. Buying a house that provides you with 0 income is the bad investment. People buy houses cause it’s the easy fun thing to do and that’s why most of America is broke. Hate me all you want but it’s true. I say all this in the most respectful way possible. No hate
@@sourmelongaming69 how about the money that is spent on rent that you can never get back at all? To me, @tears2040 is spot on. When you buy, it’s true, you may not get all of your money back, but you can at least get back a lot of it. When you rent, you’re just giving money away.
@@sourmelongaming69yes indeed I agree with you 100% buy only Assets not liability
@@prburdette3788 What about interest, maintenance, realtor fees, insurance, hoa fees etc etc. Interest alone even at 4 or 5% is more than my rent. Your either renting space or you're renting money(bank), either way your renting. Opportunity cost is the biggest thing. You're house equity needs to be earning you 10-15% a year, not sitting dead in a house. Opportunity costs my friend.
I am 23 years old Korean and I read your book 10X very impressively. I hope to be like you in Korea. Thank you
GC bro you’re investment was for family. I think it’s your greatest investment Home Sweet Home💙
Great point. Please remember the brand new mansion tax
Great video!!
A 40M home in malibu does
NOT nearly appreciate (% wise) as fast as a 400k home in a good and safe growing neighborhood. I’d say this is a BAD example, but we get the point
Brother one of your best videos hats off to you. I am 10X everything read most of your books great stuff. I am a 30-year combat veteran injured in IRAQ following your guidance I have made it a quest to live my life on the best possible terms. however my l better half lol is so pissed off that we rent a beautiful house and not own one. I bought income rental units, and they pay the rent for my rental home. six months ago the aircon went up and the roof needed huge repair and it cost me zero the landlord had to pay it. You did well by choosing the right partner in life. wish you continued success and keep helping others. I would love one day to share my success with other VETS maybe at one of your conferences.. just want to share how this vet uses your 10X way of life. I have 10X of your concepts. keep positive real content going on brother
WOOOOAH!!!!! Thanks for sharing........
G this video is fking gold. Just opened my eye to another side of the calculations. Much Appreciated.
I'm in the beginning steps trying to save for my first real estate investment, to get that cash flow.
Good stuff Grant🏴☠️🤙🏾
Can you explain possibly in detail what was good about this video? I didn't get anything useful out of it, but I want to.
Great video
In Spain a house payment is actually cheaper than rent.
whats the income potential en España
Although I agree 💯 with this philosophy. You did forget to add the cost of renting that same building in the overall equation. You still would make the same point but it’d be more transparent/accurate.
Loling at this “In residential real estate, you pay them 6% and they’re still pissed off.” 😂
💵💵💵📈 👆
Have a friend who owns 150 homes in Denver. Nets $200,000. Per month. No debt. No tenant phone calls. Travels the world. SFHs excellent investment
I need to know the audio app that was used to make that so damn clear! Especially as he's walking out at the end.
Love you uncle G
Love ya uncle g
You know you are the best Grant, love the house, you deserve it! I get it, asset, not a liability, all is well and lets go! 💪💪💪💪💪
Best teacher on the internet. Thanks Grant....#dontbyahouse
I think its better to invest in commercial properties rather than houses.
1) They dont need much maintenance.
2) You get way better rents on these than residential properties.
3) Even if in mediocre location it'd be rented out for the most of the time.
so ya, a lot of benefits keeping in mind that this is purchased as an investment.
ᴛʜᴀɴᴋs ғᴏʀ ᴡᴀᴛᴄʜɪɴɢ... ғᴏʀ ᴘʀᴏᴘᴇʀ ɢᴜɪᴅᴇʟɪɴᴇs, ɪɴsɪɢʜᴛs ᴀɴᴅ ᴍᴇɴᴛᴏʀsʜɪᴘ. ᴘʟᴇᴀsᴇ ʟᴇᴀᴠᴇ ᴀ ᴍᴇssᴀɢᴇ 📩📩🔝🔝🔝
I have used the equity in my home several times in the last 20 years to either buy more real estate, or to prop up my contracting business when money was tight. If I rented where I live, it's possible I would have had to shut down my contracting business. Grant, can you please dig deep and remember what it's like to be broke, so that you can get back to giving advice and mentoring people that have nothing?
ᴛʜᴀɴᴋs ғᴏʀ ᴡᴀᴛᴄʜɪɴɢ... ғᴏʀ ᴘʀᴏᴘᴇʀ ɢᴜɪᴅᴇʟɪɴᴇs, ɪɴsɪɢʜᴛs ᴀɴᴅ ᴍᴇɴᴛᴏʀsʜɪᴘ. ᴘʟᴇᴀsᴇ ʟᴇᴀᴠᴇ ᴀ ᴍᴇssᴀɢᴇ 📩📩🔝🔝🔝
Grant is FULL of BS! Our Parents & Grandparents would have NOTHING if it wasn’t for their Homes! There are A LOT WORSE Investments than a Home!
Grant is a SCAM Artist! Just like MANY of these TV & RUclips Personalities that are Trying to Sell you something!
Good job 🎉
I agree with this. I have a rental house that I own and I make a decent amount of money on it but even with that I can’t wait to sell it. Anytime you want a house. It’s a liability waiting to happen. Every house has problems, and the maintenance costs are high. If you can own a community you’re way better off.
Lots of people forget or underestimate the cost opportunity.. when u get this and how much it can be you would prefer to leave in a caravan and invest than buy a home for you with mortgage or even worse all cash in
Thanks Grant, I was considering buying a more expensive home but after watching this, I'll stay put and invest.
Don't forget he has a bunch of properties that he rents😅 just saying.
All is he is saying get to a point where the house cost is not a big deal in your life. This example it costs him $7million a year to live in that house for 10years. He doesn't worry about $7million as a portion of overall pie. He will also use the house for parties, networking, enjoyment etc... Get money right first, and then enjoy.
@@zidanemccalla2650 How does the fact that he rents a bunch of properties have to do with me buying another home?
@@cjcj2940 For most people in the US, it's difficult to get to the point where housing costs are not a big deal in one's life... unless you live in a tent.
@@paulpena9548 You can choose to believe one way or the other, either way you will be right.
You got me at ate ball lol 🎉
I bought my primary home two years ago in Spanish Fort AL for $345,000. Paid cash. Brand New. It is now worth $500,000. Taxes are $1,400 per year. Insurance is cheap because it’s gold certified. My business provides passive income.
While I totally get what Grant's saying about investment income vs income drain / ROI on long term investment in a home - no amount of ROI can make up for bieing in control of your castle. If you rent, you have zero rights when it comes to saying how long you can live there, never mind customizing the home to your own preferences, and often, landlords are terrible at maintaining rentals, and you end up with huge hassles that you can't control. Own at least one home - it's the American Dream for a reason.
The mansion in Florida and the mansion in Malibu are pocket change, burning a hole in your pocket. It's all passive income. Great work! Now you can live large!!!!
Thank you
I look forward to making you an offer on it after winning the 858 million power ball jackpot this year.
Logical approach. A common pattern I am noticing here is that most people investing in real estate and truly capitalizing are those creating their initial cash flows through highly profitable businesses and their individual brand identities. They have generated the wealth to then reduce their income tax burden by stashing their cash using this strategy.
Gracias Crack
You forgot the special mansion tax in CA when you sell it :)
Grant you have a point.
However the underlying truth if you read between the lines is you want people to invest in your fund.
Through you influence you’re trying to change people perception on home ownership
But ultimately you just want to money coming in the Cardone Capital
It's not a mistake if you're enjoying it. When your worth over $4B. No price on happiness my man. Keep on rockin grant
Thank you for mentioning the opportunity cost. But I don't want to go live with my mama😂😂😂
The house in Malibu made you feel good. There's nothing wrong with that.
👍
From
Calgary
You can write off the taxes and interest on a primary residences and a portion of the capital gains
Malibu historically has appreciated roughly 10% annually ( on average ) over the last 50 years. Had you done nothing to the home and kept it as is, in ten years it would be worth just shy of 70M. You have since improved the property, and who knows, maybe if the market is white hot again you sell in 10 for 85M hypothetically speaking. So now you have had the property for 10 years, made 15M. Potentially paying you 125k a month potential profit just for living in the property, of course this is only realized at the time of the sale- so yes 60M in multifamily would have been financially a better route, but you only live once ( as far as we know ) and making 125k a month to live in a beautiful area isnt so bad. You're the man Grant! Just bringing this up as you mentioned the MF appreciation but not the Malibu Home's.
Interesting.
You do thank you
I got a headache looking at that board thanks Grant.
Minimum future sale of $49m, but I get your point.
GRANT NEVER LOOSE BECAUSE IT'S INVESTORS MONEY. NOT EVERYTHING HE SAYS IS TRUE.
😂😂you very funny
Hello ! Greetings from Spain . 🏟
With rents continuing to go up we need to at least secure a place to live. Buying a home might not be the best investment but it's security and creates a sense of stability.
I respectfully disregard man. You are in a different boat. People need to own theirs house
Hey Grant, Welcome to California. I hate to break it to you dude but property taxes are 1.1% ($440,000) not 0.5%($200,000). Not to mention when you do decide to sell that asset there will be a 5.95% ($2,380,000) transfer tax for properties over 10 million
Hi Cardone, I'm Brazilian, it would be amazing to see your videos with the new youtube option of videos dubbed in Portuguese in my view. it would be great to expand your content and help new people. and as a percentage of brazil knowing you, i believe that percentage would go up a lot, here is the suggestion
great idea. 🎉🎉🎉
Thank you bro. We are working on it
How is comunism going in brazil?
Agreed. I know I’m spending more money on my personal home than I would if I was renting.
🤩 keep renting & investing the price difference
40m, you could take that same $, buy 40 decent homes in the Los Angeles area, and clear 150k a month in rents. From that, you hire one full time legal/leasing agent/accountant, and two full time maintenance crew/general labor. Contract out your groundskeeping/pool stuff. You'll still clear 110k a month. From this 1.3m/year, taxes and insurance you can figure 300k per year. This is all before factoring in the general rise in real estate value at 5% average per anum, for another 2m per year. Plus, the thing with average houses, is they move quickly if you need to liquify. None of this sitting around the market for years and multiple price drops with large apartment buildings or beachside mansions.
That's just a proof that Ben Mallah is much better in real estate...look at Ben's mansion for 16m and Grant's house for 40m
Obrigada
This guy has multiple other places to live, rent this out 2 or 3 months a year for a 500k- million bucks a month to offset the expenses/losses. He can create income from this property if he wanted to..
Honestly, alot of the time is the wife pushing the guy to buy the house. Cuz raising kids inside a 800 sq ft apartment is not easy.
ᴛʜᴀɴᴋs ғᴏʀ ᴡᴀᴛᴄʜɪɴɢ... ғᴏʀ ᴘʀᴏᴘᴇʀ ɢᴜɪᴅᴇʟɪɴᴇs, ɪɴsɪɢʜᴛs ᴀɴᴅ ᴍᴇɴᴛᴏʀsʜɪᴘ. ᴘʟᴇᴀsᴇ ʟᴇᴀᴠᴇ ᴀ ᴍᴇssᴀɢᴇ 📩📩🔝🔝🔝
Yep
Bro that Malibu house will be underwater soon flip that real quick tide is almost at front door
Hello everybody, there is something i don't get.
Of course it is better to invest your money than to buy a house, but you still have to live somewhere. So why don't compare it to the appartements investment + the price to rent such a house for 10 years ?
Using the alternative case of the multi-family, why didn’t he include costs like maintenance, taxes etc.? The personal residence could go up in value over 10 years, and many of the same principles apply (except non income). Beyoncé and JayZ just bought a $200m house in CA which sold for $14m in 2014.
Yeah but can flip the Malibu house in a year or two for 60 million profit 10-15 million and enjoy it
woow. 40 milly, you can invest in a holiday park cottage location, you earn 12% per annum,, the downside is you can only stay a few weeks per year in a holiday cottage
The best strategy for buying a house is you live in main room and get other tenants to pay off your morgage
My home is paid for long time ago he gives me great joy I love being home I love the privacy my house very quiet I got good neighbors house is small easy to maintain fantastic fantastic fantastic they'll take me out in the box
Most people still run for security that's the reason they want to buy a house rather than investing in assets that produce cash flow that will in turn take care of their family, investors and their charity
Where do you live? Oh yeah, your mom's house.
charity rmao you def heard that from Grant, charities are big write offs def get you a charity
The best way of living is to be able feel comfortable.. And money spended for enjoyment. Clever people do this.. Great!!! Have a great day millionaires ❤
What about the event you hosted there with Rob Lowe? Would events like that qualify as a tax write-off/business expense?
Why not have it all, never considered a house an investment but it does give you status .
I’ve broken these facts Grant. You are spouting facts to be clear.
I bought a beat up house on an acre.
$49000
Lived in it for 15 years. Used 1/2 acre as a yard for my masonry business.
Minimal maintenance over the years, did all the work myself, until I saw the market go loony in Ontario after covidius maximus. Here are the numbers.
$49000 purchase
$8500 maintenance (paying myself a wage)
$4590 taxes over 15 years(truth. I left the property looking rough deliberately)
$45000 spent in renovations when the market went loopy. Wages included.
$107090 total
Sold for:
$495000
-107090 expenses
-17000 commission
$370910 profit.
My situation is anomalous but it can be done. It should be admitted by me that I am as cheap a man as has ever walked the planet.
Bought a large property in the Peace region of BC with three residences. Positive cash flow baby!
You can only have a home your cash flow and income in perfect
This man spent 40 million just to prove a point that's dedication
I bought my house in 2010 for $115k. Sold in 2022 for $332k. I understand I took advantage of historically depressed prices on purchase and historically inflated prices upon selling, but it was a fantastic investment.
Smart! People always think the price of a personal residence is too high But historically real estate increases in value! @mikeallen_sells
I'll be in Malibu in November can i get a tour
Thanks for the vid. I want to apply for a 10k to start a rubbish removal company. I have a terrible credit history will it still be possible? And do you have an email I contact you on ? Thanks again
$200,000 a year on paying the govt for the land rent…. Man land tax should be a crime
Literally wrote a note in the sand there two weeks ago
I kindly request the addition of Turkish subtitles to your videos. It would be greatly appreciated as I would love to benefit from your content. Thank you in advance for considering my request
Of course a landlord is going to say this! Consider the source folks. Buying a home isn't only an investment, people need to live somewhere. If I wasn't paying a mortgage, I'd be paying RENT and building zero equity. The interest and taxes I'm paying are tax deductible. I paid 335k for my house in 2017. Today Zillow et al say it's worth 500k. Taxes are 7k / yr. Interest rate 3%. I now owe 186k. Of my $1750 mortgage payment, $1300 is going to principal. I could easily rent this place house out and be cash flow positive, but I still need to live somewhere. Comparing home ownership to commercial real estate investment is apples to oranges. Comparing home ownership to rent, owning wins hands down.
But this is not relatable ! Say someone is making 100k and renting a place for 3k per month. Had that person been paying rent to their own mortgage at least they’d have equity.
Amen! Renting where you live only makes people like Grant wealthy. If you own, you can at least get back some of your money when you sell, but renters just give all their money away. I own rentals also, but I still would encourage folks to buy instead of rent.
Thus, your advice is we should rent as cheap as possible and buy a property where we can rent out to cash flow it?
This home will be worth over $80M in 10 years. It’s a great investment
100%
Grant, please make a up to date video on what you would do with 20-100k… some of us it takes a couple years to even save up that after buying our own home. I have 40k sitting right now and not sure what to do with it. Iv contemplated upgrading my personal home and renting out my current residence at this point it’s just sitting. The build up to millions is what we need to know. Please.
Hey Jonathan, $40k would buy you $200k worth of real estate. Try to get a duplex, or if there is a possible 4 plex that needs updates. You have to start somewhere. Grant has done phenomenal, but has lost touch with beginners.