He also said, “Unless you have 20 million bucks in the bank, in cash, you have no business buying a house.”
Cardone is not the only one being critic of buying a home. There are a number of experts who consider buying a home a liability in real estate rather than something profitable.
Yet, most of the people consider owning a home an American dream. With that said, it is worth stopping down for a bit and pay attention to what the experts have to say. You may not agree with those experts but at least you will have some solid grounds for buying a home rather having just an obsession. With that said, my article is about providing a counter-argument to the financial gurus who consider buying a home a liability.
It depends on the location
Is it really worth spending your money for a home purchase? The answer is that it depends upon where you live.
There is no denying the fact that owning a home brings a lot of troubles. Besides making the mortgage payment on time, you may have to paint the walls, repair the roof, replace the carpet and do some plumbing. As the property gets older, the expenses also increase.
Nevertheless, buying a home is still a cheaper and profitable deal in most of the areas in US. For instance, let’s suppose the cost of a single family home you are going to buy is $75,000. The mortgage that you pay for it would be $500 per month. The same house, when you rent it, could cost $1000 per month. Imagine spending your life as a renter while keeping this equation in mind.
Does owning a home really make you immobile?
One of the primary reasons Cardone considers owning a home an obstacle in the way of your earning is that it makes you immobile. According to him, “To make money today, you need mobility.”
Now, there are many homeowners out there who have been earning well while living at where they would live. Although, it is really fun to move across the county and explore yourself from different perspective in order to improve your skills, it doesn’t necessarily have anything to do with sacrificing the dream to own a home.
In fact, there are some very good reasons to say that owning a home can actually be your ticket to freedom, contrary to what financial experts would say. If you keep renting, you will have to pack up after every year, bear the moving costs and pay higher rent every month. Furthermore, you will not be allowed to move until your lease is expired. So, renting doesn’t necessarily provide the freedom.