High-profile real estate investor Grant Cardone is taking President Biden to task for his proposed tax credit for first-time homebuyers.
In an X posting, Cardone questioned the logic behind the $5,000 tax credit for two years, arguing that it is near-worthless in today’s housing market.
“Is Joe dumb or does he just think his constituents are?” Cardone tweeted. “Or maybe this is simply the problem with career politicians who have never actually paid bills, run a budget or managed their own money?”
To prove his point, Cardone offered the costs that first-time homebuyers face today. He stated a $35,000 annual mortgage payment will need $5,000 in insurance per year, $5,000 in property taxes, and $8,000 in PMI – a $63,000 total for the year, which becomes $1.59 million over 30 years, provided there are no increases in assuming taxes, insurance and maintenance on the property.
“The median monthly mortgage payment is up 78% since 2021 to $2894,” he continued. “Plus insurance + property taxes + pmi + down payment x 360 months. So what does our president Joe Biden propose? A $5000 tax credit. Do the math Joe?”
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If Grant Cardone doesn’t think $5,000 per year is enough, he should put his money where his mouth is and start chipping in.
That will cost tax payers. Nothing is free.
Biden is a sleep at the wheel and his administration is probably the worst since the Carter administration. It’s like a dog chasing its tail the whole while Wasting OUR Taxpayer Dollars 💸 on Worthless programs.
Career politicians should NEVER BE ELECTED, which was our First mistake. Balance the budget and focus on America and Americans, how many BILLIONS have we wasted on 22mill illegals?!?! That TAXPAYER MONEY should go to Americans First!
Thanks Biden!!
Vote Left and You’ll have NOTHING left!
Amen to that!! ☝🏻
Totally agree!
At least Joe is trying……
Try by wiping out the middle class population.
I think the point is that it is a senseless idea that does nothing for new home buyers. Getting the interest rates lowered would be the better place to start providing help for new home buyers. Grant Cardone is not responsible for the problem; Biden is, so that is where the fix should come from.
One word answer – “yes.”
“High profile investors” are a big part of the problem. Programs like USDA, FHA, etc. make home ownership possible and anything that will further help owner/occupancy to happen helps keep the country from becoming even more of a “have” vs “have not” place. No thank you Mr. Cardone.
He’s using an average mortgage payment, but first time buyers looking in lower price points aren’t buying homes with an average mortgage payment, so “the math” doesn’t equate. With that said, $5000 doesn’t make much of a dent in our area. Back in 2008 the $8000 tax credit was a little more helpful, but the prices were a lot lower then.
I agree with you Micki and Lori
One has to give either house prices or the interest rates
It just cost so much more for first time home buyers than it used to. And because it cost so much the first-time home buyer is not necessarily a single person or a couple. It’s a couple with kids already so they are looking for more space
Joe Mama- Right on. The government has NO money but ours. Is it fair for Big Government take away our choice of how to spend it?
Lori- Yes, a lower interest rate would help. More sellers would be willing to move on and give up their LOW old rates.
Also more ‘kids’ are bouncing back after college, living at home and saving money. Maybe the extended family will come back?
Private Equity companies buying up whole subdivisions across the sunbelt does nothing to help either, competing with individual buyers, and it’s the lack of available inventory driving prices up.
The haves and have nots seem to be Big Government & out of control Companies VS the rest of us ordinary people.
Amen!
I agree homebuyers need some sort of credit. Very difficult for young families. Throw child care into the mix!!
$5,000 for property taxes? No such thing on Long Island
Sad world …
Cardone’s numbers are inflated and incorrect. When I google his phase, “median monthly mortgage payment.” the median monthly mortgage payment is $2222.
Housing costs and interest rates are up. Buyer lose bids everyday by less than $5000. I think it will help and have never met a first time buyer that wouldn’t want $5000 to help them buy a house. It is a benefit to any community to increase home ownership and worth the federal government assist. We will get every penny back in future taxes.
Presidents don’t have influence on the fed to lower interest rates, although I think Biden should replace Powell.
In addition to the incorrect median payment that you mentioned, do you know how he got the 35k+5k+5k+8k= 63k? In my calculations it =53k.
If Biden is so dumb, why does America have the best economy in the world?
Why has the stock market reached 40,000 for the first time in history?
I agree that 5k is a miniscule in todays market but it is better than nothing!
Agreed and all this in a very challenged and unstable environment at home and abroad. I am 80 yr young and don’t recall similar challenges and success.
The problem is this doesn’t address the primary issue we have in real estate, inventory shortages. There doesn’t seem to be an issue with demand. ,Although it has tempered with increased interest rates, buyers are still seeking homes, there just isn’t anything to sell them. Providing buyers with a tax credit will only increase demand as it becomes easier to buy.
How about an incentive to help sellers. Provide an exemption to capital gains tax on the sale of investment property if a property is sold to an owner occupant. Another suggestion, allow owner occupants that have mortgages at less than 3.5% to borrow for their next home at 2% above their current rate, this helps with the payment shock of doubled interest rates.
I agree with Bo. Our interest is now 3.5 and we are thinking about relocating in a few years. So 2% above what we have now would be great. Everyone thinks that the interest rate is really high, remember back in 1981-82 interest was at 17%, I was selling real estate back then, tough times!!
Any money for Buyers would be welcomed, as there is a lot of expenses with moving.
As usual Cardone makes the numbers work to justify his intentions.
And it is $53,000 … the majority a write off.
The “High Profile” investor has no idea what the 1st time buyer faces.
Another $5,000 in tax credits matters, added to the slim write offs a W-2 employee gets.
The interest paid on $35,000 in mortgage payments, and $5,000 in taxes is conveniently omitted from Cardones math. Another $5,000 helps.
Biden got the Bipartisan Infastructure Bill passed employing tens of thousands of middle and low income Americans.
That Helps them buy their 1st home.
Rump ignored a horrendous pandemic for months and lied continually about it.
Biden has a Border Bill with Bipartisan support and Rump nixed it for political gain.
Biden hasn’t been Indicted 4x, hasn’t sat for weeks (months ?) in a Courtroom, or been Convicted of anything, Rump has.
Rump ran up 7 Trillion in National Debt, helped by giving tax breaks to those who could most afford to pay their fair share.
High Profile Real Estate investors have no room to talk about help for the 1st time Home Buyer.
Their interest is to keep them renting.
Corporate greed has driven inflation as much as the examples set by Rump.
He campaigned on the genius he brings by not paying taxes, well that’s the key to his fines in the New York case.
Why attack a small tax break for the 1st time buyer.
It doesn’t effect his bottom line … unless they buy their 1st home.