As one of the few Real Estate guys here on YouTube, I felt it was worth addressing and responding to Gary Vee’s thoughts on homeownership - and this is my view. Enjoy! Add me on Instagram: GPStephan
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So lets start here, and I think this was the main statement that got a lot of people shook: Home ownership is a bad use of capital.
The answer to this is debatable - there are situations where he is very much right, and home ownership is a TERRIBLE use of your money. But there are situations where home ownership can be TREMENDOUSLY more profitable than anything else you do. So how do you know which category you fall into?
Well:
If you’re buying a home to impress your friends - I think that goes without saying, that’s stupid.
If you’re buying a home because you want to say you “own a home” - chances are, that’s not a smart move.
If you’re maxing out what you can afford just to buy a the largest home you can - Ummm…no.
If you want buy a house to live in, but you also want the flexibility to move around as often as you like, wherever you like - Then I have a feeling, you’re better off renting.
If you’re running a business where every single dollar you invest BACK into that business doubles your profit - well, it’s safe to say, then you should focus on that BUSINESS and not tie up capital in a down payment buying a house, and I think Gary is right.
On the other hand:
If you’re buying a home because it’s undervalued and you can fix it up to make a profit - chances are, that’ll be good move.
If you’re buying a home because it’ll be a cash cow rental property after you’ve lived in - that’s a good move.
If you’re buying a home because you’ve crunched all the numbers and discovered the NET cost to own is CHEAPER than renting - then you should absolutely go for it, and buying a home can be a smart financial move.
Here’s the point I’m getting at though - your INTENTIONS and REASONING for home ownership should be the main topic of discussion, not the act of buying a home itself.
And unfortunately, the biggest problem I see with home ownership is that nearly EVERYONE considers their home an INVESTMENT, when in fact, very few people EVER truly run the numbers to determine whether or not it’s ACTUALLY a good use of money.
In order for a home to be an INVESTMENT to me, it needs to be something I can buy under market value - it needs to be something I can fix up to further increase the value - it needs to be something that cash flows - and it needs to be something that would get me at LEAST a comparable return to investing in the stock market. Now, do MOST people think of any of this when they buy a home? The answer is NO.
So why do people call their home an investment, anyway? For most people, owning a home just acts like a forced savings account, where every month you put some money away where it’s safe.
The thing is, when you begin viewing home ownership as an INVESTMENT FIRST, PLACE TO LIVE SECOND - it’s like starting to see the entire world in the matrix, where you notice the things most people don’t. Once you start viewing home ownership as not a GOAL to accomplish, but whether or not it’s a viable INVESTMENT - you begin filtering out all the non cash flowing properties, all the homes that barely make a profit - and instead, you can focus on few homes that becomes a money making machine. It’s also important to COMPARE that money making machine with other investment opportunities you have access to, and then decide from there - based on your risk tolerance - if it’s a good move or NOT.
And unfortunately, like I said, almost no one does this.
And uhhh…yeah. That’s my response to Gary Vee.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
Merch: http://www.GrahamStephanStore.com/
GET $50 OFF FOR A LIMITED TIME WITH COUPON CODE: THANKYOU50
The Real Estate Agent Academy: Learn how to start and grow your career as a Real Estate Agent to a Six-Figure Income, how to best build your network of clients, expand into luxury markets, and the exact steps I’ve used to grow my business from $0 to over $125 million in sales: https://goo.gl/UFpi4c
Join the private Real Estate Facebook Group:
https://www.facebook.com/groups/therealestatemillionairemastermind/
How To Live For Free Videos:
https://youtu.be/PobcKgC2QFg
https://youtu.be/m6tSUsB12QM
https://youtu.be/mmusZ66uH7A
So lets start here, and I think this was the main statement that got a lot of people shook: Home ownership is a bad use of capital.
The answer to this is debatable - there are situations where he is very much right, and home ownership is a TERRIBLE use of your money. But there are situations where home ownership can be TREMENDOUSLY more profitable than anything else you do. So how do you know which category you fall into?
Well:
If you’re buying a home to impress your friends - I think that goes without saying, that’s stupid.
If you’re buying a home because you want to say you “own a home” - chances are, that’s not a smart move.
If you’re maxing out what you can afford just to buy a the largest home you can - Ummm…no.
If you want buy a house to live in, but you also want the flexibility to move around as often as you like, wherever you like - Then I have a feeling, you’re better off renting.
If you’re running a business where every single dollar you invest BACK into that business doubles your profit - well, it’s safe to say, then you should focus on that BUSINESS and not tie up capital in a down payment buying a house, and I think Gary is right.
On the other hand:
If you’re buying a home because it’s undervalued and you can fix it up to make a profit - chances are, that’ll be good move.
If you’re buying a home because it’ll be a cash cow rental property after you’ve lived in - that’s a good move.
If you’re buying a home because you’ve crunched all the numbers and discovered the NET cost to own is CHEAPER than renting - then you should absolutely go for it, and buying a home can be a smart financial move.
Here’s the point I’m getting at though - your INTENTIONS and REASONING for home ownership should be the main topic of discussion, not the act of buying a home itself.
And unfortunately, the biggest problem I see with home ownership is that nearly EVERYONE considers their home an INVESTMENT, when in fact, very few people EVER truly run the numbers to determine whether or not it’s ACTUALLY a good use of money.
In order for a home to be an INVESTMENT to me, it needs to be something I can buy under market value - it needs to be something I can fix up to further increase the value - it needs to be something that cash flows - and it needs to be something that would get me at LEAST a comparable return to investing in the stock market. Now, do MOST people think of any of this when they buy a home? The answer is NO.
So why do people call their home an investment, anyway? For most people, owning a home just acts like a forced savings account, where every month you put some money away where it’s safe.
The thing is, when you begin viewing home ownership as an INVESTMENT FIRST, PLACE TO LIVE SECOND - it’s like starting to see the entire world in the matrix, where you notice the things most people don’t. Once you start viewing home ownership as not a GOAL to accomplish, but whether or not it’s a viable INVESTMENT - you begin filtering out all the non cash flowing properties, all the homes that barely make a profit - and instead, you can focus on few homes that becomes a money making machine. It’s also important to COMPARE that money making machine with other investment opportunities you have access to, and then decide from there - based on your risk tolerance - if it’s a good move or NOT.
And unfortunately, like I said, almost no one does this.
And uhhh…yeah. That’s my response to Gary Vee.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
What was your budget like pre home ownership?
idek why gary clown is famous
nailed it!
Gary Vee would recommend this considering he pays his employees chump change
If you’re married and have kids, if you’re 28, you need a home
Great Video. And I think honestly, the very biggest takeaway starts at Minute 11. 🙏👍
He just wants to live in a box of basketball cards.
that's a bad advice.
entrepreneurs are most of times broken, buying real state is not that bad if you know what are you doing.
if you get the money for downpayment and put on some random business you end up broken often.
Hi Graham, Another great video, I bough a house at 28 years of age. I use to stay with my sister but she moved, and moved and I kept needing to pack up my stuff and move, I felt very unhappy moving so much so I had full time job, I did zero research took a walk in the part where myself and my sister was renting a house and came across and middle age nice lady she carry down payment for me and I paid her $98.00 a month but it was in year 1985. I am not sure a person can find these types of deals in today time but it turn out to be great deal. It took me awhile to pay the house off but time 2007 I got it paid off. And I enjoy it plus I spend money like crazy was not good in that part but
I felt I did ok without doing to much research. Graham, I must admit I had no idea what I was doing.
I was born in 1950's but Life for me was pretty much live for the moment. I travel a lot hang out with family and friends I felt lazy did not work hard found the easy job possible. Bought costly cars
and being all about enjoying the moment. But I truly get to sit here watch all the young peoples great videos young people seem so smart these days. Thank You for sharing.
Facts I agree with Gary V why be trapped in a 30 year mortgage and some missed place pride, now if your plan on making a investment that’s different
I actually have to agree with Gary Vee here. If you’re young and need to be mobile, haven’t settled down, there are much smarter investments out there. Buying a home as an investment is like putting all of your money into one stock, without considering the market of that stock, and hoping to make a great return.
Point to Gary Vee. Home ownership is a trap
Do people really do things to impress friends? Serious question.
Graham just explained how the 2008 housing bubble happened
So where I live, a 10% LTV on a 150k property has a far cheaper mortgage payment than renting an equivalently priced house. Would you say its better to buy given that renting is more expensive?
I cant stand Gary Vee
I like on picture you Black or white
To add on, I enjoy home ownership quite a few for reasons that have nothing to do with "investment", though that should be a consideration. I just enjoy having a space that I can remodel as I see fit (within reason), and home projects, while sometimes frustrating, are extremely gratifying when complete.
lord, have mercy on the haters who dislike the video 😉 anyway very very very very very very very high iq person in terms of business in real estate. nice work grahm.
First of all stop begging for likes and subscribers…🖕
Gary is such a scam put people don't acknowledge the fake taking action behaviour that he puts in the ppl mind
I love when people use Gary's name to get views because he's more successful than the person criticizing his strategy…
Do you reccomend while saving up for a down payment on a rental house, you should save that up in cash? Or something to get a return during that year or so it takes you to save in stocks, or bonds?
Yooo don't skip leg days ever again hahah. Love your videos though keep it up bro
From Gary Vee's initial statement; sounds like he's describing the concept of "renting"
This is the best video on this topic ever
Gary Vee must calculate how much one person will pay in rent between age 18-43 (as he suggested). My house can you pay 3,6X over in 25 years. I counting my own payed off house just like a bank account (house is still here and sellable), but now saving 900€ every month on not existing rent (alternative living cost), keeps +900€ (income tax free) profit on my account. SAVED MONEY AND HEALTH IS THE BEST INVESTMENTS (because goverment is not figured out take taxes on those, jet). Greetings from Finland!!!
Sipping my 20 cent iced tea ……..
I watch the ads just to increase the ad revenue for graham 🤷🏻♂️
I find it ridiculously funny when you get into that "haters commenting that I'm wrong" in your videos. That voice over effect is hilarious!
"…but GRAHAM, YOU'RE WRONG BLAH BLAH BLAH…"
lol😂😂