[Mortgage Is ‘Just A Fancy Bullsh*t Word For Paying Rent For 30 Years To The Bank,’ Says Real Estate Billionaire Grant Cardone — Here’s Why Renting Could Be A Better Financial Move
](https://finance.yahoo.com/news/mortgage-just-fancy-bullsh-t-171148202.html?guccounter=1)
“Freedom is overrated, people are happier when they pick cotton.” Slave Owner
Housing can’t be both an investment vehicle and affordable. This guy is essentially saying “let’s just nix the affordable part”. Absolute vampire.
He’s literally one of the people making home ownership unaffordable.
LMAO, considering big business is buying up homes literally for this purpose, I’ll take what he’s saying with a grain of salt.
Does that mean we should over extend on buying a house that’s outside of our means? Absolutely not, but at the same time, housing is still way overpriced and since shit is barely regulated, both from a seller and a purchasers standpoint, there’s a lot of regular people getting stuck with a lot of shitty options for living situations.
Grant cardone is one of the slimiest cunts in the billionaire class, and that’s a high bar
You can safely discount anything he says, because it is always self-serving
Just a grain? I say whole mine. I bet he “owns”.
At least enough salt for 3 tequila
There is no right or wrong answer when it comes to rent vs own. Do what is best for you
What I will impart to people here though is always look where the message is coming from. Therein you glean some of the answer.
I mean, that’s kind of how it used to be. “No right or wrong answer, do what works for you.” I wasn’t really in a long-term career at the time so I rented, as a choice. Now housing has gone up so much, almost no one my age can afford to buy a home. And because we’re locked-in to renting, property owners are raising rents, every year to increase their profits. And because we’re all spending so much money just for shelter, we don’t have it saved up to purchase even a cheap home. It happened to me several years ago, it happened to me during the pandemic, it happened during crazy-high inflation, and it’s still happening. They know they have a (almost literal) captive audience. I can’t even afford to move to a different area, and if I did, who’s to say they wouldn’t also start jacking up my rent after the year-long lease is up.
My other choice is to live on the streets. Home-ownership isn’t perfect and has its unique challenges, but ultimately it gives you something renters don’t have: stability and security. We’re fucked…
I mean, you do also have the option of moving to an area with cheaper house prices, y’know leaving behind all of your friends, family, favorite places etc. plus you’d probably have to trade the cost of your home for driving a lot more and therefore buying cars more often if you move to small town America where houses are affordable.
Not to mention leaving behind your source of income…
Are…are you me?
There is no sight or wrong answer when it comes to rent vs own. Do what is best for you
Putting money into your own ownership, versus putting money in for somebody else’s ownership, is a very straightforward scenario examination, to determine which one is better for you.
Yes and no. Ownership is valuable. But the flexibility to live and move with less responsibility is also valuable.
Yes and no. Ownership is valuable. But the flexibility to live and move with less responsibility is also valuable.
It’s not a matter of responsibility, you’re responsible for making a payment each month, either way, so that cancels out.
Your paying the same kinds of money out of pocket each month in either case. You might as well own what your emptying your wallet for when you’re done, than not. Wealth begets wealth, it snowballs.
In understand your point. It costs money to buy, sell, and broker house/mortgage. People have to live in their houses (in a normal economy) for like 3-5 years before even making a break even point on home. Just bought my first house and we’re drowning in interest at the moment. Rents will fall faster when interes rates change than we will be able to refi. BUT it’ll be better for us in the long run.
It costs money to buy, sell, and broker house/mortgage.
Its true that you need to save up the initial down payment. But in the long run it’s smarter to do so, than renting.
People have to live in their houses (in a normal economy) for like 3-5 years before even making a break even point on home.
It’s definitely not a short-term investment, unless you really try to play the real estate market.
But I’m not speaking towards trying to turn a short-term profit, just not having a short/long-term loss.
Put it another way, whose mortgage would you want to pay off, yours, or someone else’s?
Finally, real estate prices continue to always go up, so even if you had to sell short-term where you’ve been paying mostly interest you could probably sell the property for more value to make up the difference.
Just bought my first house and we’re drowning in interest at the moment.
All home loans are mostly paying interest up front, it’s not into the later years of the loan when you start paying substantial principle payments.
A neat trick is to always make an extra small principal only payment with each month mortgage payment, and that can change a 30 year loan to an 18 year loan.
Just make sure the write in the memo field on your check “principal only payment”, or else the loan company will try to just take that extra money and put it on the interest only portion of the loan (they’re tricky that way).
Rents will fall faster when interes rates change
Historically rental costs have always gone up, and not down.
Did you mean the monthly mortgage payment amount on a home loan?
BUT it’ll be better for us in the long run.
Ownership truly is better.
This is all neglecting that after that 18-30 years, you don’t have that payment. Also, if you get a home that is much closer to your annual income, you can pay it off in a much shorter time. With the way properties are going right now that is almost a joke to say, but here I am, living on a dream. Also, having dealt with slumlord landleeches charging me $1k/month for a house that would have sold for $30k five years ago, I can honestly say that I never want to be subjected to a landlord again. Banks may be scummy, but they are heavily legislated scummy. Also, I would much rather be responsible for my house than some asshole. The house has mold, sparking outlets, the foundation is cracked in multiple locations, and huge cracks are forming in all of the walls as the house warps working towards collapse. And when I brought this all to the landlord’s attention they tried to illegally evict me and raised my rent by $125/month. We immediately started viewing new places. My wife is pregnant, and if that baby has a single birth defect I am suing these two into oblivion.
This is all neglecting that after that 18-30 years, you don’t have that payment.
I don’t understand this sentence?When you’re done with the loan and it’s paid off you don’t have to make any more payments, so I’m not sure what you’re trying to express?Edit: I understand now. It was implied in what I was saying, so not being ignored. I was assuming people would know that when a mortgage is done being paid off you no longer have to continue to make payments.
Also, if you get a home that is much closer to your annual income, you can pay it off in a much shorter time.
Oh totally agree. I was suggesting 30 because most people seem to only have enough money to make a down payment on a 30-year loan. If you can get a 15-year loan that’s much better.
I personally always got 15-year loans, because with those loans you end up paying the least amount of interest on. Thirty year loans are horrible, considering how much interest you have to pay versus principal, which is why I would suggesting you try to pay it off faster than the 30 years by paying a little bit extra every month with extra principal payments.
It’s not just money. Ownership means taking care of the house, and dealing with the buying/selling process. Would you advocate that university students buy a house for three years then sell again?
A good rental means you’re paying the landlord to take care of things for you.
I agree in the long term, since we always need somewhere to live, that personal ownership is better; but if you’re moving a lot, or perhaps depending on your job situation, I think renting is a valuable service for many people.
Would you advocate that university students buy a house for three years then sell again?
Assuming a university student had enough income, yes, most definitely. But most people buy houses after college, as they are busy paying for/off college first.
But realize that monthly rent payment is going to be about the same price as a monthly mortgage payment.
I agree in the long term, since we always need somewhere to live, that personal ownership is better; but if you’re moving a lot, or perhaps depending on your job situation, I think renting is a valuable service for many people.
Well just realize that you’re losing money by taking advantage of that service, and then, yes, it is valuable service, but also a more costly service.
Is it more convenient for you to have food already cooked delivered to you? Yes, of course. Will it cost you more money, will you lose more money, than if you went to the grocery store, got the ingredients, brought it home, and cook the food yourself? Most definitely.
The point I’m making is don’t pay somebody else’s mortgage off, pay your own mortgage off.
A good rental means you’re paying the landlord to take care of things for you.
While strictly true, and I do not mean to be insulting, but that is a very financially dumb thing to say.
As I mentioned previously, you’re giving your money to the landlord so that he can earn more money for himself, versus getting your own property and earning money for yourself.
Make your money work for you, and not for someone else. You earned that money.
Is it more convenient for you to have food already cooked delivered to you?
I mean, that’s exactly my point. Services exist to cook and deliver food. Sometimes they’re desirable, sometimes they’re even economically profitable for the customer.
Housing is different from food, and more important/worthwhile to own. But housing-as-a-service is still, I think, a valuable option to have.
In my experience, financially it’s also a valuable option.
Make your money work for you, and not for someone else.
And yet, money is nothing in itself, unless you’re a true capitalist. You’re giving money to a landlord for him to provide you a service. You could instead invest that money in property and do the work of being your own landlord, and reap the benefits of that too.
And yet, money is nothing in itself, unless you’re a true capitalist.
I f’ing hate bots/people who waste my time with nonsense.
Grossly oversimplifying home ownership.
It was a Lemmy comment. I don’t think you should expect a college course lecture on the subject.
Ultimately though, the comment stands. You’re either enabling somebody else to be more wealthy, or you’re enabling yourself to become more wealthy. The choice is yours.
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You’re either enabling somebody else to be more wealthy, or you’re enabling yourself to become more wealthy. The choice is yours.
I know you’re just stating an opinion, but that last sentence is downright insulting to me.
(I’m including above the whole statement and just bolding the part that you included when you did your reply.)
I meant no disrespect. I personally was a high school dropout from a broken home (and the emotional baggage that goes with that) but was still able to purchase a house, so I know it’s doable.
Having said that, I wasn’t judging you personally. I wasn’t even addressing you directly. I was just expressing a generic opinion about the pros and cons of purchasing versus renting to a wide audience. If that statement felt like an insult to you personally, then you need to look within.
I wish you well and happiness.
its kind of not. we own now. its great. everytime we pay our mortgage, which feels exactly the same as when we were paying rent, we are in essence saving that money as we get it back when we sell this place (which is all contigent on how much its worth when we sell etc).
when we were paying rent, we paid the landperson’s mortgage off month by month, making themmrew wealthy. upkeep is always a part of everything you own.
Spoken like someone who has never had a surprise maintenance issue pop up unexpectedly that costs multiple times your monthly mortgage.
True, you need to be able to afford to home while you’re living in it, but you make all of that up and more when you sell the property.
Also, your “costs multiple times your monthly mortgage” comment is a rare thing. Usually its just a couple of hundred dollars type of repair, and its a few times in a year.
Put him on the List.
Put him on the menu
Grant cardone is one of the slimiest cunts in the billionaire class, and that’s a high bar
You can safely discount anything he says, because it is always self-serving
“Renting makes me money.”
Okay, work backwards from there.
FFS these people.
owning several properties for renting and not needing to actually work is the real fancy bullshit.
did anyone tell that to this leech?
Grant cardone is one of the slimiest cunts in the billionaire class, and that’s a high bar
You can safely discount anything he says, because it is always self-serving
Cancer-free is “just a fancy bullshit word for not mortgaging your house to buy my medications,’ says cancer drug manufacturer. Here’s why having cancer could be a better financial move (for me).
At least you get something in return for “paying rent” to the bank. Paying rent to a landlord is just paying someone elses mortgage, for no return whatsoever.
I hate to tell you this, bud, but one day, you’re going to die. You can’t take that house with you. Use your money to travel, and live.
Yeah! Once you’ve spent all your money traveling you can just sell your… oh wait.
And you’re still going to die. Live doing what you want to do, or on your knees in debt before the bank. Your choice.
More like:
Live on your knees past retirement age or take out an early 9mm retirement plan before you’re too old to work.
“Debt incumbent home owners don’t go on strike”
He’s not exactly wrong. If you have a mortgage, you do not really “own” anything and essentially have a “landlord” through your lender.
You may not just be mad at renting/landlordism. Your ire may be for the generalized concept of private property.
If you have a mortgage, you own what you paid (except interests).
If you bankrupt and are unsolved on a mortgage, and they take the house, the house is sold in an auction, the bank gets what’s remaining in the mortgage, but the rest is yours.
The point being that your place of residence, the place where you possibly stake your roots and raise your family, is not fully yours and can just as easily be taken away if you suffer any type of financial misfortune or fail to keep up financially with the market around your community.
The relationship to your lender is very similar to a renter’s relationship to their landlord.
Equity is a benefit, surely, but indebting yourself for 30 years in a location you may have compromised for is the other side of it. And your relationship to a higher authority who truly owns your property remains (until the debt is paid, of course).
Inherently, it all comes back to private property and one’s relationship with its owners.
The relationship to your lender is very similar to a renter’s relationship to their landlord
Is it though? Landlords typically have hot opinions on what you do with the property. Banks don’t care so long as you don’t literally destroy it. When I rented I felt stifled in things like modifying my place, adopting a dog, painting walls, etc. Owning my place feels a lot better even if it costs a lot more.
I get what you say kind of from a financial sense but even then it’s radically different. You can pay extra every month to get a mortgage finished early. Each year you get more and more equity and are in a better financial spot. When a lease renews your landlord has the option to say “I want more money, so you have to pay extra now” or just straight up refuse to let you live there anymore, and at the end you have nothing. And a foreclosure is a much lengthier process with more outs for a homeowner than an eviction is for a renter.
He’s not exactly wrong. If you have a mortgage, you do not really “own” anything and essentially have a “landlord” through your lender.
Except there is an end to those payments after which you do actually own the roof over your head.
Plus, the lender doesn’t want to “renovict” you or pull any of the other bullshit that typical landlords try to get away with.
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This turd should be one of the first to go
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I also, like to troll the poors.
In other news, the job market is overrated and you’d all do better to come and work at my factory in perpetuity as indentured servants.
He’s right as far as mortgages go, which is one of the most abusive financial albatrosses a person can wear. Nobody tells people that they’re going to actually pay 3 to 4 times the amount they bought the house for when they sign the papers.
But where does he even get the idea that rent is less than a mortgage at this point? That’s sure not what it looks like to me.
You only pay 3-4x what the house is worth if you stay in the house for 30 years and pay the minimum payment. If you pay extra on the principle - because your income went up over the last 10 years - you pay less. If interest rates go down in that time and you refinance, you pay less.
