Recently, Gary Vaynerchuck told his throngs of listeners that home ownership no longer makes sense in his world economy. As someone who likes people to believe everything he touches turns to gold, this should raise a few eyebrows…
While Gary is certainly looked upon as someone with street smarts who has made some very good business decisions, I am not sure that his real estate advice makes sense for everyone.
Apparently, Gary’s “kinship towards real estate agents” is cool when he’s being paid big dollars for spouting how effective Vine or Snapchat are for making real money. Of course, the fact that he’s an investor in Snapchat had nothing to do with him telling real estate agents how awesome Snapchat is. Right?
“I’ve always felt a sort of kinship towards real estate agents because, to be great in that industry, you have to have some real entrepreneurial tendencies.”
Gary Vannerchuck – Using Only Snapchat To Sell Real Estate
Is home ownership right for everyone? Probably not. For people who move from city to city often, for people who like to have freedom to move from job to job or travel a lot, the costs of buying and selling homes as a short term “investment” might not be a great fit, that is why you should learn multi-family real estate to make the right investment.
However, historically, home ownership has been a decent investment for many Americans. Chris Smith pointed this out to Gary today, as well.
One example I have is from personal experience: My wife and I purchased a house when we got maried. We were looking for a place to call home. A stable environment for the family we were about to start.
We purchased a home utilizing a 15 year mortgage. In the blink of an eye, we realized that our home was nearly paid off. Instead of paying a mortgage for a landlord, we had been quietly stashing away hundreds of thousands of dollars.
After 13.5 years had passed, our kids were heading to middle school. We came across a home that was super close to where they / we would be spending a LOT of time over the next several years. It was closer to where they would go to middle school and it was less than a mile from where they would eventually go to high school, so we decided to move.
Because we had nearly paid off our mortgage instead of leasing a home, we were able to “leverage” a much larger home into a lower monthly payment. In our way of thinking, a nicer home with a larger yard for our kids made a lot of $ense for our family.
Before we got married, I had owned more than 30 homes and found real estate to be a good part of my long term strategy. Of course, I’m no Gary V if you look at my financial statement. But I know I wouldn’t trade my world for his…
Gary seems to say that investing in the stock market and cryptocurrency is better than in real estate. It’s all about the right timing when investing in cryptocurrencies, so be wise and collect as much knowledge as possible by staying updated on the latest cryptocurrency & bitcoin news.
While I don’t necessarily want to disagree with him, I do wonder if more millionaires have been created from home ownership or from the stock market. Sure, many of the 1%ers like Gary have made FORTUNES by leveraging their stock investments, but how many every day people obtain financial security from the long term investment of where they live? Finding the best Canadian stocks to buy, or simply learning how to buy stocks, can be a challenging endeavor, at https://www.stocktrades.ca/ you will find the best possible Canadian stocks .
Interestingly enough, one of the companies represented by VaynerMedia is Berkshire Hathaway Home Services. Yes, the real estate firm. Gary likes to talk about how he loves “people and the relationships I have with them” (i.e. REALTORS and others in the industry) … I kind of wonder how they are feeling about their deci$ion right about now.
So, while the foul-mouthed Gary Vaynerchuck says you’d be a fool to invest in a home for your future, that doesn’t necessarily mean his advice is right for everyone.
While I appreciate the fact that Mr. V speaks his mind, I am sure he’d be open to hearing a different philosophy from someone who is normally a little less vocal than he is…
Update: Gary V Writes A Rebuttal
Shortly after making the video above, Gary decided to clarify his position by writing “One Man’s Point of View.”
As a media guy who loves taking checks from real estate agents, he apparently decided to clarify his position to people who disagree with him.
Some of my favorite nuggets of wisdom from his rebuttal talk about how important it is to make people think you are a big deal. You see, renting a larger home is a great status symbol find your perfect property to rent using this apartment questions. In some worlds, it is also really important to drive a fancy car so that you can impress people by spending capital where it really helps. Fancy cars, Instagram and status symbols…
Here’s a fun quote that I found interesting…
“If you’re driving a Lamborghini, you’re signaling a lot of things about yourself to other people, and people love doing that for a variety of reasons.” Gary V
Another great piece of advice to entrepreneurs is to make sure they know the importance of living in a better place. You know, a place where a different entrepreneur takes your money from you every month…
Instead of using that capital on a down payment, they can use that money to pay higher rent for a better place. – Gary V
I love how real he gets with us by saying “With the way Instagram ads are underpriced right now, I almost wish I didn’t own a home so I could spend more money on ads.” Because, I am 100% certain that he stresses out about not having the money to buy Instagram ads.
I LOVE that Gary talks about hussle and working hard. That should still be the American way. I just feel like he sounds foolish when he talks about an industry he knows very little about.
This justification article seems to want to play to the people in our industry who disagree with saying home ownership is a waste money. Maybe even a small attempt to try to keep his speaking gig$ alive in our industry?
“Too many entrepreneurial people in their 20s – 40s are taking cash out of their business to put towards buying a home, and it’s limiting the amount of success they could have.”
I wonder how many 20 somethings listen to gurus and sink all of their eggs in a basket that never pans out? When they burn that capital and the landlord decides to sell the fancy rental home they are using to impress their friends, what happens next?
Another question to ponder: Do you prefer to pay your mortgage or your landlord’s mortgage?
I also wonder how many people get rich by trying to impress their friends with fancy cars and large homes they don’t own or can’t afford? Look, Gary Vaynerchuch is probably a pretty smart dude and he has made a LOT of money. BUT, in my opinion, he shold leave the real estate talk to real estate professionals. Unless, of course, he wants his audience to be living in a (fancy) van down by the river…
The Phoenix Real Estate Guy was started by Jay Thompson, and I have a little blogging problem... he liked to say...
Spot on. Thx for sharing.
Thanks for stoppig by, Mark! 🙂
Hi Nick – I couldn’t agree more with what you’ve written. H-O-M-E means so much to so many, and I think most people dream of owning their own home. I don’t understand Mr. V’s point of view on this, but everyone is entitled to their own opinion. I will always believe in real estate and owning it, and I love helping buyers start their own real estate portfolios. Real estate is and has been the foundation of a lot of the greatest wealth in this country. Sure, there’s a lot of money to be made in the stock market, and I invest in the stock market as well, but I firmly believe that owning real estate is a much more solid investment. Your post is right on the mark.
Thank you, Ann.
I have a feeling that many people believe the same thing as we do. 🙂
Thanks for stopping by!
He should NOT give real estate advise. Especially on how to sell real estate.
but, but, but… he (and his ego) knows all! 🙂
Everyone is entitled to say something really stupid on ocassion. I’ve never vested much time in listening to Gary V. I always had a hard time getting beyond his incessant expletives, but that’s just me. No doubt his speaking engagements will decrease significantly in the near future…..
Hi Rich,
It’s not just you. I really don’t pay a lot of attention to people who talk like that. There’s (imo) a difference in “being real” and using f-bombs a dozen times per conversation you have. It’s just a personal decision.
To each, their own. He’s a “successful” guy and I wish him well. There’s just not anything I will ever want or need from him. I’m sure he’d feel the same way about me. 🙂
Always good to hear from you, my friend!
Once again, nailed it. When home ownership makes the difference for millions across generations in their ability to retire, raise families and send kids to college. I will take
My home ownership and save my next conference registration for someone who actually believes in all parts of our economy.
amen, sista! 🙂
I find it interesting that he said this. I think you have to take about half of what he says on any given day and throw it out. Most of his thoughts are just that–thoughts. They’re not truth yet so many fall at his feet and worship. So ridiculous. Home ownership is the building block of wealth for so many people. I’m wondering how his sister feels about this now that she’s just starting her real estate career? I’d like to be at their family dinner table to hear the discussion and how it might impact her income.
Thanks for stopping by, Shawn.
We certainly agree that home ownership matters.
Sad thing is everyone here only looks at statements like his as how it effects them, truth is that home ownership is not a good investment.
I know I know you know a guy who made a billion dollars on a single house…but seriously in today’s market prices are inflated, jobs are moving (if you are good enough to be sought after) and the housing “professionals” we are we are not doing anything to change the fact that most of the real estate industry is starting to look like a shady used car lot of characters.
But keep holding on to that “we don’t need to change” mentality and things like Zillow will just make all those “professionals” obsolete. Now back to bragging about how you make the world a better place everyone!
Thanks for your amazing words of wisdom, “James”
I forgot I need to put my resume on here to be one of the cool kids.
Well I can tell you that I have been doing this longer and better than most of you, but you keep holding on to that hope and dream that you are above change.
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Thanks Nick for great share! However, that’s just his ideas. I am not sure that there are many people will agree with him.
I agree with you Nick. It’s not necessary that if you are investing in a real estate it is useless. There are many examples that depict that investing in the real estate actually makes sense and is a competitive industry.
I’ve been following Gary for years and I do like him a lot, but couldn’t disagree more on this. After years of renting and bouncing from one apartment to another, dealing with noisy neighbors and some less than honest landlords, buying a house was the best decision I’ve ever made. Regardless of whether it was a good investment, what I’ve gained in peace of mind is priceless.