American homebuyers have been feeling the pinch on their budgets due to rising interest rates and continually high home prices. This challenging situation has made it more difficult for them to afford their dream homes.
Grant Cardone, a prominent figure in the real estate industry, predicts a future where longer mortgage terms will be crucial. As someone who has established himself as a successful mogul, his insights carry weight and should be taken seriously. By recognizing this emerging trend, individuals can better prepare themselves for the changing landscape of homeownership and make informed decisions about their financial futures.
“The savior of America will not be lower prices, it will be longer mortgages,” he said in a recent TikTok video.
“In your lifetime, you will see mortgages go from 30 to 40, 50 and maybe even 60 years. You could, if you live long enough, see a 100-year mortgage in America.”
Cardone, while acknowledging the importance of mortgages, raises valid concerns about their potential impact on achieving genuine home ownership.
“A mortgage is just a fancy way to say you own some sh-t that you don’t own,” he explained
Cardone envisions an exciting future with remarkable changes in how we live and consume. He believes that the trend of renting will become the new normal, extending across various aspects of our lives. With this shift, individuals can enjoy greater flexibility and freedom in their choices, embracing a lifestyle that suits their ever-evolving needs.
“America will become a renter nation,” he predicted. “You will rent your cars, you will rent where you live, you might even rent your clothes in the future.”
@grantcardone Do You Think We Will See A 100 Year Mortgage In America?
♬ original sound – Grant Cardone
If you’re still interested in venturing into the world of real estate, it’s worth noting the numerous benefits it offers. With its reputation as a hedge against inflation, a reliable source of passive income, and an effective way to diversify your investment portfolio, real estate can be a lucrative and secure long-term option for you.
Even in these uncertain economic times, there are smart ways to invest in real estate without having to take on excessive debt. Let’s explore three effective strategies that can help you make wise investments in the real estate market.
- Invest in publicly traded REITs (Real Estate Investment Trusts): REITs are like giant landlords that own income-producing real estate and pay regular dividends to shareholders. They are publicly traded and offer liquidity and flexibility in terms of investment size.
- Invest through crowdfunding platforms: Crowdfunding platforms allow individuals to invest in real estate projects, from rental properties to commercial buildings. Some platforms cater to accredited investors, while others are more accessible to the general public, allowing smaller investments.
- Invest in real estate ETFs (Exchange-Traded Funds): ETFs provide diversification by holding a portfolio of real estate-related stocks. Investors can access real estate exposure without the need for in-depth stock picking. Popular real estate ETFs like Vanguard Real Estate ETF (VNQ) and Real Estate Select Sector SPDR Fund (XLRE) offer broad exposure to the real estate sector.
These alternative investment options offer ways to participate in real estate without the need for traditional mortgages and property ownership. Each approach has its advantages and considerations, and investors should conduct their research and consult with financial advisors before making investment decisions.
