this post was submitted on 09 Dec 2023
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[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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[–] londos@lemmy.world 143 points 1 year ago* (last edited 1 year ago) (4 children)

He assumes an average monthly rental cost of $1354, and 3% rent increase annually. I have lived in apartments where they increased the rent 10% one year and 15% the next.

Even putting that aside, ok, by the time you're dead, say it works out to the same amount spent. But as an owner, you've now invested in a generational asset. Renting now means your kids and theirs will also likely rent.

Gtfo.

[–] SuiXi3D@kbin.social 48 points 1 year ago (1 children)

I’d kill for my rent to only be $1354.

[–] Semi-Hemi-Demigod@kbin.social 18 points 1 year ago

That's about my mortgage payment.

[–] stolid_agnostic@lemmy.ml 17 points 1 year ago (8 children)

You’re forgetting that elder care will eat up that wealth.

[–] Semi-Hemi-Demigod@kbin.social 13 points 1 year ago* (last edited 1 year ago) (2 children)

Which is the problem we have: For way too many people an asset capable of depreciation is their main or even only retirement savings. So reducing the price of housing will be a problem for a lot of local and state taxpayers.

Not saying it's right, just saying how it is.

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[–] umbrella@lemmy.ml 79 points 1 year ago (3 children)

owning several properties for renting and not needing to actually work is the real fancy bullshit.

did anyone tell that to this leech?

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[–] HawlSera@lemm.ee 76 points 1 year ago

"Freedom is overrated, people are happier when they pick cotton." Slave Owner

[–] mp3@lemmy.ca 67 points 1 year ago (15 children)

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.

[–] Cornelius_Wangenheim@lemmy.world 21 points 1 year ago* (last edited 1 year ago) (8 children)

Also, your mortgage payments don't go up every year, assuming you're not a moron and got a fixed rate mortgage. And eventually they stop altogether.

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[–] ZombiFrancis@sh.itjust.works 63 points 1 year ago (7 children)

"Renting makes me money."

Okay, work backwards from there.

FFS these people.

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[–] notannpc@lemmy.world 58 points 1 year ago (1 children)

Every time I see articles about this my knee jerk reaction gets more and more unhinged. Regardless, the world would be a better place if people like this were dead.

Thats the nicest way to say it. These people fucking suck.

[–] 5in1k@lemm.ee 14 points 1 year ago

They’re living piñatas and it’s time to pop em.

[–] jordanlund@lemmy.world 57 points 1 year ago (6 children)

Give me a rental with a fixed monthly price for 30 years and I'll consider it.

[–] jj4211@lemmy.world 21 points 1 year ago

Also with a refund if you move out, in fact often giving you more money than you paid.

Yeah that goes down as keep paying it and can be leveraged against your debt, and is designed so you don't have to pay rent when you're retired

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[–] andrefsp@lemmy.world 55 points 1 year ago (17 children)

Oh, I have something to say about this.

About 7 or 8 years ago I bought my house. I had friends of mine showing me articles that basically had the same "renting is better than buying" message bullshit.

You don't really need much brain power to understand that is absurd. Paying loads amounts of money for something that will never be yours is obviously stupid in the long term.

The thing that made me very upset at the time is that my friends drunk the cool aid of these very same article and didn't buy a property when they had the chance... Now, 8 years after, they are all struggling to buy properties except now is a lot more expensive.

The house you live in should be YOURS and no-one else.

[–] CancerMancer@sh.itjust.works 17 points 1 year ago* (last edited 1 year ago) (1 children)

Bought around 7 years ago as well, got told the same things. I said I was taking a bit of a cost hit now to lower my costs in the long term because my mortgage payments will never go up the way my rent payments were.

Fuck me I had no idea things would get this bad, and boy am I glad I got into a home when I did. It really shouldn't cost that much to rent, this shit is absurd.

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[–] Sagifurius@lemm.ee 13 points 1 year ago* (last edited 1 year ago) (3 children)

In a very specific scenario, with a very large amount of running the numbers, as a high income person with low personal expenses and a very good investment advisor, I could see how in certain situations/locations where mortgage rates are much higher than rental rates, that you get better fiscal results investing than paying that mortgage. That was a very rare situation 7 years ago, even more rare now. Where I lived ten years ago, I could not possibly afford the mortgage but I could the rent. These days there the situation has reversed and they're both sky high regardless.

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[–] derf82@lemmy.world 51 points 1 year ago (7 children)

If renting doesn’t make sense at half of what it costs to pay the mortgage, how does the mortgage make sense

Where on earth is renting cheaper than a mortgage?

Let’s say it’s in Orange County where the house is $800 grand," Cardone said. "You’d have to sell the house for $2 million just to pay the interest bac

As opposed to paying even the same in rent, where you get NONE of it back?

assuming a 3% annual increase in rent

Lol, what planet do they live on?

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[–] dylanmorgan@slrpnk.net 47 points 1 year ago

Guillotines.

[–] FlyingSquid@lemmy.world 38 points 1 year ago (2 children)

And he personally owns how many houses?

[–] Hereforpron2@lemmynsfw.com 24 points 1 year ago

And coincidentally wants people to rent them.

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[–] theodewere@kbin.social 37 points 1 year ago (1 children)

he didn't become a real estate billionaire by telling people the truth about real estate

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[–] whoisearth@lemmy.ca 37 points 1 year ago* (last edited 1 year ago) (2 children)

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.

[–] CosmicCleric@lemmy.world 21 points 1 year ago (10 children)

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.

[–] milicent_bystandr@lemm.ee 28 points 1 year ago (34 children)

Yes and no. Ownership is valuable. But the flexibility to live and move with less responsibility is also valuable.

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[–] Empricorn@feddit.nl 12 points 1 year ago (3 children)

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...

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[–] someguy3@lemmy.ca 36 points 1 year ago

"Anything but paying me and making me rich is bullshit" - Toddler billionaire throwing a tantrum.

[–] jaybone@lemmy.world 31 points 1 year ago (7 children)

This is not the first time I’ve seen media stories within recent years pushing this idea that renting is better than buying.

This is the absolute stupidest most transparent lie the rich are trying to pull to fuck us. Sure we don’t see all the shady shit with lobbying and and all the details of inflation bullshit. Those are easier to keep mysterious and hide the exact details.

But this rent thing, that’s the dumbest most demonstrably false lie they have ever tried to spread. If anyone is believing that shit, god help them.

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[–] bustrpoindextr@lemmy.world 30 points 1 year ago* (last edited 1 year ago) (7 children)

Aight let's see. Mortgage is a fixed rate over an agreed upon term that ends with you owning the property, rent increases every year, you have no control over the property and you get fucked constantly.

Yup, totally the same thing.

Also my mortgage for my 1/2 acre property with 1500 sqft house is $50 less per month than my 900 sqft poorly constructed "high end" apartment rent was about to spike up to. You know, after renters protections were removed during the pandemic.

Quick edit: furthermore, it took me until I was 30 to buy a house. In that time I spent 170k in rent, when I started renting the property I'm currently living in was worth 140k. That's pretty easy math right there. Just like... Come on.

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[–] Cornelius_Wangenheim@lemmy.world 29 points 1 year ago (3 children)

The simple retort to this is that every renter is paying for a mortgage: their landlord's.

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[–] Fedizen@lemmy.world 28 points 1 year ago* (last edited 1 year ago) (1 children)

Housing can't be both an investment vehicle and affordable. This guy is essentially saying "let's just nix the affordable part". Absolute vampire.

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[–] psycho_driver@lemmy.world 28 points 1 year ago (5 children)

I think we should conquer his mansion and turn it into a commune.

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[–] zcd@lemmy.ca 27 points 1 year ago

This turd should be one of the first to go

[–] ExLisper@linux.community 27 points 1 year ago (7 children)

A friend of mine worked in Switzerland for couple of years. It's pretty much impossible to buy anything there because everything is owned by investment founds. He worked with two Swiss guys. One got lucky and married a women that inherited a piece of land and was able to build his own house. The other one was renting. According to my friend the levels or resentment and jealousy expressed by the latter were staggering. They pretend it's a good model but in reality they know being forced to rent sucks. Don't let this model become reality in other places.

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[–] jwagner7813@lemmy.world 24 points 1 year ago (3 children)

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.

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[–] captainlezbian@lemmy.world 22 points 1 year ago (3 children)

Yeah but at the end of 30 years the bank lets me keep the place and they never raise the price

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[–] Burn_The_Right@lemmy.world 22 points 1 year ago

Billionaire landlords breathing public air is just fancy bullshit. The air on this planet is not for them. They have not earned it.

[–] slurpeesoforion@startrek.website 19 points 1 year ago (2 children)
[–] NickwithaC@lemmy.world 24 points 1 year ago

Put him on the menu

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[–] Sagifurius@lemm.ee 18 points 1 year ago (1 children)

I also, like to troll the poors.

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[–] nodsocket@lemmy.world 17 points 1 year ago (1 children)

Grant Cardone is famous for spouting BS. Whenever the media needs a good controversy they just wait for him to open his mouth.

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[–] Rockyrikoko@lemm.ee 16 points 1 year ago

But you're not renting the home from the bank, you're renting the money you borrowed so you can own your own home

[–] OldWoodFrame@lemm.ee 12 points 1 year ago (3 children)

It is always wrong if you're saying to just buy or just rent. Neither is the better financial move for everyone.

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