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If you don't get in the game of home ownership and you rent in your 20s and you rent in your 30s, you're going to
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turn around in your 40s and having not built any net worth. >> Am I not better off renting and
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investing in the stock market versus buying a house? >> I want to bust this myth because what
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happens is people come on, they go, "The stock market over the last 20 years has
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averaged over 10% annually." People go, "The returns are better in the stock
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market than real estate." Yeah, but that's not apples to apples comparison.
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Why? When you buy a piece of real estate, when you buy a home, people don't typically pay cash for their first
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house, they put down 20% and they borrow the other 80%. Take a $200,000 home, you
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put 40 grand in, $200,000 home goes to 400,000 in 10 years. This has happened to so many people in the last 5 years.
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So, they've made 200,000 in profit. They didn't put in 200,000, they put in 40.
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So, they got a five times return on their down payment. They go to sell their house.
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They don't pay taxes on the gain because when you own a home, at least in the
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United States, you own a home for over two years. If you're single, you get $250,000 in taxfree gains. If you're
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married, you get over half a million dollars in taxree gains. You get tax deductions on the mortgages. So, what
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happens is people come here and they go, "You know what? You shouldn't be you
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shouldn't be tied down. You need to be flexible when you're young. You don't
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want to have the responsibility and you should take the extra money and you should put it in a mutual fund. And
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you know what happens in the real world, Stephen? People don't do that. They rent
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an apartment that's nicer than what they can afford and they spend all their
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money and then they turn around in their mid30s and they have no equity because they haven't bought anything and they
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also haven't saved money. It is an absolute freaking myth that people take this extra money that they could have
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used to buy a house and they're going to put it in the stock market. They don't
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do that. Certain influencers that are out there promoting the idea that renting is better than buying a home.
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And when you look into why do these people promote it? Either A, it's a stick because it gets them clicks on the
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thumbnail, b they're selling something else. They're trying to get you to
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invest in their real estate. They're selling you in a coaching program. They're selling you, you know, to come
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to their live event. But I'm telling you, when you look at average Americans,
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average, I'm talking about ordinary Americans, when you look at where their wealth is, it's in home equity and it's
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in the stock