Buying a house is the worst investment! A wealthy American venture capitalist said "Just buy Bitcoin," should Taiwanese people still buy houses?

robot
Abstract generation in progress

Famous American real estate and venture capital tycoons Grant and Gary Cardone discussed the housing market and asset allocation on the Bonnie Blockchain program on June 23. They made strong criticisms of the enduring topic of "buying a house as an investment" and advocated for legislation to "prohibit referring to buying a house as an investment."

The two brothers openly admit that the first half of their lives was spent renting, instead relying on leveraging operations and Bitcoin (BTC) to build their wealth. They further reveal the secrets behind the data of the American housing market, pointing out the current distortion of market interest rates and liquidity, and propose a new asset allocation concept that combines real estate and Bitcoin.

The family suffered a severe blow during childhood, and the two brothers realized that "buying a house is not an asset."

Grant recalls that when he was 10 years old, his father passed away suddenly, and his mother immediately sold the house that his father had worked hard to buy. He said:

"Mom must have been sad at that time, but she was very scared because the house would only bring burdens."

Gary stated that his mother compared prices everywhere to save money, yet she was unable to earn money and lacked control over the economy. This made both of them understand early on: "Maintaining the status quo is useless; just having a house won't make you wealthy."

Buying a house is the worst investment; it doesn't have cash flow and won't be treated as an investment operation.

Regarding whether buying a house is really an investment, Grant directly retorted:

"Buying a house is definitely the worst, the worst, the worst investment."

He believes that buying a house not only does not generate cash flow, but also lacks liquidity and will tie down one's life. Grant also said that even if house prices triple, the other half would not say to sell and make a 300% profit. In other words, a house bought for living purposes will not be treated as an investment.

Gary also stated that many Americans are tied down by the 4% ultra-low mortgage rates, and even when there are better job opportunities, they hesitate to move away from their original city. He laughed and said:

"This is just exchanging one's life for a little interest rate benefit, which is simply not worth it."

Seventy percent of Americans are holding onto their homes with low-interest mortgages.

The two brothers also revealed that currently, 70% of homeowners in the United States have a mortgage interest rate of less than 4%, and 30% of them buy homes directly with cash. If you were to buy a house now, you would have to pay about 5% in mortgage interest, but the cash you have if deposited in the bank would only earn 0.25% in interest income.

The reason why housing prices are currently holding up is that it is possible to get an 80% loan. Once banks become conservative in the future and no longer provide such high loan ratios, overall housing prices will plummet by 40%.

BTC does not require tax or utility fees, and the annual return could be as high as 15%.

Instead of being tied down by a mortgage, the two brothers actually prefer buying BTC. Gary joked:

"I have never received a call saying that the Bitcoin roof is broken and needs fixing."

They stated that the average annual return of real estate over the past 100 years is only 1%, excluding unseen costs such as repairs, taxes, and relocation. They also believe that investing in Bitcoin is more efficient, as it does not require those aforementioned costs, and the average annual return could be as high as 15%.

Grant further added that BTC can be purchased regularly without worrying about trading frequency and timing of exit. He also joked that his child has moved 17 times and the child is not afraid of embarrassment, only cares about whether the "pillow is soft enough."

To invest in real estate, buy over 20 rental properties, and then use the money to buy BTC.

However, the two brothers do not completely deny the investment value of real estate; they just emphasize that one should not treat their own home as an investment. Therefore, they advocate for commercializing property management, such as buying more than 20 units at once for rental, establishing a stable cash flow, and then using that to buy BTC.

They are trying to create a "mixed asset" model that combines real estate with Bitcoin as collateral to obtain more efficient leveraged loans.

In 2025, rental pressure in the Taiwan real estate market will increase, with interest rates and lending restrictions suppressing speculation by investors.

For the people of Taiwan, the issue of "buying a house or renting a house" is still under continuous debate. Currently, the overall Taiwanese housing market is showing a high-end consolidation trend in 2025, with a slowdown in price increases and even slight declines in some areas, but overall housing prices remain at historical highs. On the rental side, influenced by rising housing prices and interest rates, rents continue to rise, increasing the living pressure on renters.

According to the Ministry of the Interior's real estate information platform and statistics from multiple real estate agents:

Housing Price Trend: Overall, it shows a consolidation at a high level, with slight declines in Taipei, New Taipei, Taichung, and Kaohsiung, while Taoyuan experiences a slight increase due to construction and first-time homebuyer demand.

Transaction volume: The number of transactions and pre-sale volumes in the six metropolitan areas have significantly declined, indicating a cooling market.

Rent: Continuing to rise, with an annual increase of 2.5%, reflecting strong demand for rental housing and increasing pressure on renters' lives.

Housing loans and policies: Rising interest rates and strict lending restrictions suppress speculation by investors, with the market gradually dominated by owner-occupier demand.

Economic Environment: Steady economic growth provides some support for the housing market, but uncertainties still exist globally and across the Taiwan Strait.

As of the latest data statistics in 2025

This article states that buying a house is the worst investment! A wealthy American venture capitalist says "buy Bitcoin instead," should Taiwanese people still buy houses? Originally appeared on Chain News ABMedia.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)