Grant Cardone says young people should rent, not buy a primary home, and put that money into business or income-producing real estate instead. Hannah Hammond shares why she did it differently and bought a home young as an investment.
My advice to all.
Young people, never.
Buy a home ever, till you're super wealthy, then you buy a home. Till then, invest in yourself, invest in your business and invest in real estate to cash flows.
Now the audience is going to say, but where am I going to live? You're going to rent. You're going to rent where you live and you're going to take the money.
That you would normally use to buy.
A house and you're going to use.
That to build yourself, build your business, or invest in other real estate that pays you income.
I agree with Grant in this video. However, I did it a bit differently and I don't regret it. So Grant is saying to not buy a home ever until you're super, super wealthy and to just rent and use that money that you're going to save to a home to invest in yourself, in your business and in real estate assets that are actually going to put money in your pocket. However, when I was getting started at 18 years old, I sold a piece of real estate and I took that commission check and I did use it to buy my own home. One, because I did need a place to live. But two, I bought the home as an investment. I still moved into it, but I was able to take advantage of a lower interest rate, a longer term amortization and an easier financing process to be able to buy this property. And then I was able to also renovate it, live in it for two years, and then when I sold it after five years later, I didn't actually have to pay any capital gains tax on that $250,000 of capital gain that I had. So that's something that's really beneficial. If you are a new investor and you are looking to buy your own property, it can be a great way to take advantage of a lower interest rate and avoid capital gains taxes on your gain by buying your own house and living it for a short period of time.
