My Issue w/ Grant Cardone's statement to never buy a house

[Luke Terry]

I enjoyed episode 250.  Congrats guys on making it.

I think Grant had some good content to challenge my paradigm on investment strategy.  However, his view on not buying houses doesn't make sense for the following reason (I know he's echoing something Robert Kiyosaki said as well so I'm countering some credible voices).

Anyway, it costs more to rent an equivalent home than what you would buy.  In addition, you're accumulating equity while paying off your house if you buy.  So his argument that the equity you have in your home could have been used for another cash producing investment isn't completely true.

Case in point, Let's say you buy a $300K home, so you're out the $70K in down payment and closing costs.  So it's true that is money you can be using for an investment.  On the other hand, your P&I + insurance + taxes for your home is probably at $1,900/ month, whereas for an equivalent home to rent you're looking at $2,500/month +, a difference of $600/month.  Over the course of 5 years, that's $36K in rent savings + $30K in equity you've paid into you home which nets you at about even.

So a better answer is if you want to like the sexy life style and move around every year or two, then he's right, you shouldn't buy, but if you plan to stay somewhere longer because you have a regular job, etc. then there's a breakeven point where it makes sense to buy, especially when you add in other benefits like being able to draw a line of equity on your house and tax write offs on mortgage interest.

Trulia has a great tool to calculate the break even point between rent vs buy on any property.

https://www.trulia.com/rent_vs_buy/

I'm curious to know what others think.   Cheers

https://www.biggerpockets.com/renewsblog/biggerpoc...

[Joel Owens]

If you have been around enough people in your lifetime there is one universal truth. People like to live their lives all differently. Some groups or people have more commonalities and interests than others but not all 100% the same.

Some people enjoy constantly being on the move because TO THEM that is living. To someone else like me.......... : ) I do not like to constantly move houses or places. Born and raised in GA. I do like to travel and see new places but love coming back home to where my roots are.  

Everybody has a filter and thinking process with their brain on how they view living and the world. That tends to change as we age and have more life experience.

Money IS NOT everything folks. It really just isn't. Everyone puts on their clothes the same way each day.

I do know people of huge wealth. I have read stories of some people in their 60's and 70's in age obsessed about money. In the interview they talk about how they would rather be worth 50 million today and have lived many amazing memories from their 30's to 70's in age then have worked themselves around the clock to have 200 million but not experienced much in life.

Money is only one component of life. Balance is what is key.

Some mentors I go to for advice are very wealthy. They share with me that in their 30's to 40's in age they focused 60% on the business, 30% family, 10% mentoring or helping others.

Middle age 50's,60's they did about 45% business,40% family, and 15% mentoring.

In their 70's now they do about 20% business, 50% family, and 30% mentoring to help others.

They still work on large projects however have trained up others over decades to run their businesses for the most part.

TIME is one of the most precious commodities.

Majority of the population see their home as retirement and something to work for. It instills a sense of pride in a community and area. There is a big emotional component to people's choices and living. It is NOT all about just the dollars folks. As mentioned cost of living and rent to purchase and owning ratios differ across the country. I listened to the podcast a bunch of great points were made.

Grant seems to have a message and way of living life that he wants others to embrace and follow. They can take some, all , or none of what he does and try to make it their own.