As reported by Yahoo Finance, Grant Cardone, the controversial financial guru and author of the recently released book "The Wealth Creation Formula," is shaking up the real estate market with his unconventional views on homeownership. In an Instagram post, Cardone revealed that he and his wife, Elena, are selling the Florida beachfront mansion they purchased from fashion designer Tommy Hilfiger in 2021. The couple is listing the luxurious 10,275-square-foot estate for an eye-popping 646 Bitcoin (BTC) or approximately $44 million, a steep price tag that far exceeds the $28 million they paid for the property just a year ago.
The mansion, located at 605 Ocean Blvd. in Golden Beach, Florida, is a tropical paradise with six bedrooms, a sprawling pool, and direct access to a 100-foot private beach on the Atlantic Ocean. Cardone and his wife have lavishly renovated the property, enhancing its outdoor spaces with a new cabana, beach house, deck, and pool, as well as installing stunning ocean-side windows and doors and upgrading the landscaping. The couple's meticulous renovation has transformed the mansion into a modern beachfront oasis.
Despite his current real estate endeavors, Cardone has been a vocal critic of homeownership, arguing that it traps individuals into a single location for decades. In an interview with GoBankingRates, Cardone called homeownership "a terrible, terrible investment" and "a trap." He explained that buying a home ties you to a specific place for upwards of 30 years, limiting your flexibility and opportunities for relocation. This contrasts sharply with the flexibility and adaptability offered by renting, which allows individuals to easily change residences as their circumstances or career paths evolve.
Cardone further criticizes the notion of buying a home as an investment, asserting that the return on investment is significantly lower than other assets like the S&P 500 or bonds. He points out that once you make a down payment on a house, that money becomes "dead" and stops growing, while you're also responsible for servicing the mortgage debt every month. To recoup your investment and make a profit, you would need to see a staggering return of 70% on the sale price, after accounting for real estate commissions and insurance costs.
As Cardone puts it, "You have to make almost 100% in 10 years just to break even — and you lost your mobility."
Cardone's unconventional views on homeownership have sparked debate within the financial community. While some applaud his willingness to challenge traditional wisdom, others criticize his simplification of a complex issue. However, there's no denying the impact of his message. By publicly flipping his luxurious mansion so quickly after purchase, Cardone is putting his money where his mouth is, embodying the flexibility and adaptability he advocates for.
As the real estate market continues to evolve and options like renting and co-living gain popularity, Cardone's perspective on homeownership may resonate with an increasingly larger audience.
In a world where financial freedom is the ultimate goal, perhaps the true measure of success lies not in owning a home, but in having the freedom to choose where you live and how you allocate your resources.
Comments