America will become a renter nation': Grant Cardone warns the US could see 100-year mortgages

[Tom D]

big row house city. the problem with too many tenants on the street block, if you own your home, are the ones who don't pay attention to the outside front of their house. in the lower income areas where there is predominance of tenants the street trash makes it look more ghettoish. this big city i can tell by the amount of trash on the street that there are a lot of tenants.
the best we can hope for our kids is to own a house, or to leave them 1 free and clear. the revolution in the old soviet ussr was caused by the peasants not owning anything. if you don't own anything, then it's easy to want to take from those that do.

 

[Carnivore]

Based on my quick research, e.g. looking at the Wikipedia information --- he is best described as a Scientology follower, car salesman, training coach shyster. Hardly an expert in economics. He has fired many who worked for him and refused to follow Scientology. He has a troubled past, to say the least. He does have Scientology behind him, for what that is worth.

Hundred year mortgages? Come on, you can't take that seriously.

Well, we may see a 100 year mortgage some day far in the distant future in this country. It is highly doubtful now in our country because we have millions of undeveloped land area.

https://www.sciencedirect.com/science/article/abs/pii/1061951895900047#:~:text=The%20100%2Dyear%20Japanese%20residential%20mortgage%3A%20An%20examination%E2%98%86&text=The%20home%2C%20encumbered%20by%20the,grandchild%20in%20a%20multigenerational%20fashion.

 

[RCA]

Well, we may see a 100 year mortgage some day far in the distant future in this country. It is highly doubtful now in our country because we have millions of undeveloped land area.

https://www.sciencedirect.com/science/article/abs/pii/1061951895900047#:~:text=The%20100%2Dyear%20Japanese%20residential%20mortgage%3A%20An%20examination%E2%98%86&text=The%20home%2C%20encumbered%20by%20the,grandchild%20in%20a%20multigenerational%20fashion.

To quote from your Japanese article:

"Through the use of simulation, the conclusion is reached that the 100-year mortgage has failed to increase the affordability of homes. Instead, affluent homeowners are more likely to employ long-term mortgages as an estate-planning tool to reduce inheritance taxes."

In other words, it is just a gimmick for the ultra-rich to evade taxes and expand their current assets. Note:

1. The buyer will have to be rich enough that he can be reasonably sure he will not be forced to sell a 100-year mortgage home in order to move to another location because of work or some other extraneous reason. In other words, he is rich enough to own at least several luxurious residential estates.

2. Such a home is likely in such a good location with such good improvements the owner can be very sure that his descendants will want it as well.

3. The 100 year mortgage gives the buyer the ability to own a far more luxurious estate than he would be able to afford otherwise.

4. Such mortgages drive up the cost of luxurious estates putting them beyond the reach of less fortunate buyers. They are only beneficial to the ultra-rich: Those with net assets over $30M.

The Geographic Distribution of Extreme Wealth in the U.S.

More than one in four dollars of wealth in the U.S. is held by a tiny fraction of households with net worth over $30 million. Nationally, we estimate that wealth over $30 million per household will reach $26 trillion in 2022 with roughly one-fifth of that amount ($4.5 trillion) held by billionaires.

itep.org

 

[Non Sequitur]

Like it or not the world is going through change, the likes we have never seen. Nobody really knows where we are headed. Nobody knows 30 years from now how different segments of the population will be earning their income and how much these various segments can earn. Most raw productivity will be done directly by AI and robots. People will be at best AI managers - at worst human AI monitors or even worse: Unemployed.

Yep.