‘America will become a renter nation’: says billionaire Grant Cardone. Making the most of the market without a mortgage

Core Insights - The article discusses the shift towards renting in America, suggesting that individuals should invest the money saved from not buying a home into real estate that generates monthly returns [1][2][5] - High mortgage rates and rising housing prices are creating challenges for potential homeowners, with predictions that housing prices will continue to increase over the next decade [2][7] - Various investment strategies are presented, including crowdfunding and fractional ownership, which allow individuals to invest in real estate without substantial debt or direct property management [10][20] Group 1: Renting vs. Buying - Cardone argues that renting may become the new norm in America, with individuals renting not only homes but also cars and potentially clothing in the future [1] - He highlights that rents are approximately half of mortgage payments, and renting incurs fewer costs such as no down payment, minimal insurance, and no property taxes [2] - The current economic environment, characterized by high mortgage rates, is making homeownership less accessible for many Americans [7] Group 2: Investment Strategies - Crowdfunding platforms allow individuals to invest in real estate with lower barriers to entry, enabling ownership of a percentage of properties without the need for direct management [10][11] - Multifamily real estate investing is recommended for diversification, with Cardone suggesting starting with 32 units to mitigate the impact of vacancies [13][14] - Fractional ownership platforms provide opportunities to invest in high-quality rental properties with lower capital requirements, offering monthly rental income and tax benefits [20][21] Group 3: Market Conditions - The Federal Reserve has maintained interest rates between 3.5% and 3.75%, while 30-year fixed-rate mortgages remain high at 6.1%, contributing to the affordability crisis in the housing market [3][4] - Predictions indicate that mortgage terms may extend significantly in the future, potentially reaching up to 100 years, as a response to the current economic conditions [8]