Rental property billionaire says buying a home (with a mortgage) is "fancy bullshit" and you should rent instead
Rental property billionaire says buying a home (with a mortgage) is "fancy bullshit" and you should rent instead
[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)
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Not exactly the wrong message but definitely the wrong messenger.
Wrong message and factually incorrect.
How? Mortgage is the same risk exposure as rent with a "landlord" who holds even less responsibility to maintain the quality of the place than in a rent arrangement.
A mortgage broker is not a landlord. Not even close.
They hold 0 responsibility because they don't own the property.
How? It's called building equity. Every payment you make contributes toward your ownership of the property. Something you can borrow against at a low rate or cash in at any time.
When you move out of your lease you take nothing with you.
A loan is not the same thing as rent, see the other response for a start on details.
No.
Rent will be a bit higher than comparable mortgage payment.
A mortgage payment actually ends one day.
If you move out, you get to sell your house and get a lot of money "back" compared to renting, maybe more than you put in even.
Even without selling, you have "equity" you can leverage to have secured debt at very attractive rates.
Absolutely, 100% the wrong message, because it isn't correct even slightly.
How exactly? A mortgage is in practice rent to the bank, complete with them getting to evict you if you turn out to not be able to pay, not to mention that the landlord at least hypothetically is responsible for providing repairs and appliance replacements.
How? Because in about 1.5years, I will own outright the house that I'm "renting" by paying off my mortgage. When's the last time you can say that about some spot you were renting?
Also, my "rent" is about 5x less than any renter in the area is paying for a similar house.
I live in a 5br 3ba house on 5 wooded acres inside a national park.
My mortgage is about halfway done, the house is currently worth about 60% more than I paid for the house and the total rent (ahem, excuse me) MORTGAGE PAYMENT, including escrow for insurance and taxes is $1790 a month.
I live 22 miles from the Washington Monument as the crow flies.
And you think I'd be as well renting an apartment?
This house rents for more than double what my mortgage costs, and at least a third of that payment is expenses that will always exist (taxes/insurance)
Utliies range from $77 to $220ish per month.
This is a whole lot of privilege.