1.2 Billion Dollar Real Estate Investor: "Buying your house is the dumbest investment you can make"

[OfTheCross]

I own a multi unit and a multiple bed/bath condo....But even if I didnt I still would look at a single family home as an investment in the sense that for the most part it is an appreciating asset and adds to your personal networth and retards against rising rent.

If you buy the property in cash it may certainly be viewed as such.

But paying it off in 30 years or even 15 years hurts that so much that it can't possibly be viewed as a proper investment.

Say for instance, that the parents of @Forcible Entry did a 15 year mortgage in 1995... the total amount paid for the house would be $138K not including home improvements and maintenance.

Yeah it's worth $160K, now. But that's probably a wash. This investment yields no profit. That's why I say you(the typical person with a mortgage) can't view their home as an investment.

My parents bought the house that I grew up in for $60k back in the early 90s. That house is worth $160k today and its been paid off for 10 years. If my parents were renting, they would have paid 10 more years of rent and counting. But since they bought the house, they now have an asset to pass down to me and/or my brother. We can sell it and make $150k or I can hand it down to my kids. I really don't see how the common person can say home ownership is stupid.

 

[North of Death]

If you buy the property in cash it may certainly be viewed as such.

But paying it off in 30 years or even 15 years hurts that so much that it can't possibly be viewed as a proper investment.

Say for instance, that the parents of @Forcible Entry did a 15 year mortgage in 1995... the total amount paid for the house would be $138K not including home improvements and maintenance.

Yeah it's worth $160K, now. But that's probably a wash. This investment yields no profit. That's why I say you(the typical person with a mortgage) can't view their home as an investment.

But it is a proper investment because the appreciation value after 15 or 30 years...And yes there are maintenance, HOA fee, taxes, and other costs to consider..However, the investment value is that IT IS BETTER THAN PAYING INCREASED RENT EVERY YEAR THAT YOU GET NOTHING OUT OF. That is the whole point of the the discussion...You mean to tell me it is better for a mothafukka to have been renting in a market like San Fran or New York since the 80's rather than investing even in a single family home? You have to be out of your mind and not much life experience to think that

 

[OfTheCross]

But it is a proper investment because the appreciation value after 15 or 30 years...And yes there are maintenance, HOA fee, taxes, and other costs to consider..However, the investment value is that IT IS BETTER THAN PAYING INCREASED RENT EVERY YEAR THAT YOU GET NOTHING OUT OF. That is the whole point of the the discussion...You mean to tell me it is better for a mothafukka to have been renting in a market like San Fran or New York since the 80's rather than investing even in a single family home? You have to be out of your mind and not much life experience to think that

I support buying a single-family home as a primary residence. Having ownership is great.

I just want it mentioned that unless you buy it cash, don't ever expect to make any money from the "investment."

If anything you can consider it a savings account.

 

[North of Death]

I support buying a single-family home as a primary residence. Having ownership is great.

I just want it mentioned that unless you buy it cash, don't ever expect to make any money from the "investment."

If anything you can consider it a savings account.

Ok, but it still appreciates in value and is considered an asset, even with a mortgage..that is what makes it an investment at a basic level.

 

[OfTheCross]

Ok, but it still appreciates in value and is considered an asset, even with a mortgage..that is what makes it an investment at a basic level.

It may. It may not. I wouldn't look at it as an investment because there's no chance of profit. It's a dope Savings account, though

 

[North of Death]

It may. It may not. I wouldn't look at it as an investment because there's no chance of profit. It's a dope Savings account, though

Not every investment will be profitable breh...A college degree comes to mind, even though it is technically an investment, theres no guarantee one will profit from it and infact one could be in the negative which is typical now days depending on the degree..But at a basic level, a college degree just like a single family home is still an investment based on the expectation and potential financial gain in someway (including calculating the costs of potential rent one would pay in a given area).

 

[☑︎#VoteDemocrat]

 

[Pimp]

I watched the interview and what Grant Cardone says is true. People are so dumb it goes right over their head

 

[TDUBB]

Looks like ur boy is in trouble

 

[BlackJesus]

Worst advice ever. One more reason to think for yourself

 

[ahomeplateslugger]

Not surprised. Anyone giving that advice is clearly an idiot. Lol at investing in a house being dumb.

 

[TDUBB]

 

[Cynic]

Looks like ur boy is in trouble

He needs to come with stronger receipts than fired media buyers ...

I do agree that raising money from retail investors probably wasn't a good play

 

[Cladyclad]

I owned my home for 6 years outright. Paid 12k in homeowner taxes over those 6 years. If I stayed in my apt for those 6 years. I would gave that apt complex over 60k that I would never see again.

 

[CouldntBeMeTho]

Owning a house outright with no mortgage or payments is one of the few things that could potentially save someone right now