The 7 Real Estate Lies Experts Tell You

It’s getting tough to hear. Today, on the exercise bike, I listened to an “expert” tell everyone that interest rates have never been this high and that Canada is a horrible place to invest. You needed to go to the United States to buy a cash-flow rental property, and he would lead you to that promised land.

Other idiots tell you that buying a house to live in is a good idea whenever you can. According to them, owning a home is an investment, and you should buy now to cash in. Again, this is idiotic advice. Let me give you my list and get it out in the open. Hopefully, by doing this, I won’t have to keep these idiotic thoughts in my head.

1. Interest rates have never been this high. Nope. Average interest rates over time are about where they are now. Interest rates have been up close to 20% in the past.

2. A home you live in is an investment. That is a lie unless it is a duplex where you live in one half and rent out the other (which would be a 50% investment). Nothing about owning your own home comes close to qualifying as an investment.

3. Forget the 30% rule. It’s not relevant today—more idiot advice. You should spend no more than 30% of your family's gross income on your shelter costs. Whether you rent or buy a home, all prices to live under that roof can’t exceed 30% of your income. If that formula doesn’t work where you want to live, move somewhere else. If you are whining that you can’t, let me get a box of Kleenex for you. There are many places in Canada and the United States where the 30% or less rule works.

4. Cash flow properties don’t exist today. While that is true in many places, pockets of opportunities exist. If you can’t find one, wait as long as necessary.

5. You must buy real estate when you can, or you will miss out. That is a significant lie that can cause a lifetime of financial pain. You can wait for as long as you can find a great deal. You buy real estate when the value is significantly greater than the price asked. That’s it. Simple.

6. If you are in Gen Z or your 30s, you DESERVE a great house—a total lie. You deserve what you earn, without mommy or daddy footing the bill or living in the basement so you can afford that multi-million-dollar mansion as your first house. Shame on you for draining their wealth; remember, Karma is tough. Who will live in your basement to support you when they pass on?

7. Investing in Real Estate or buying a house is easy. That's the biggest lie they tell you. It is not easy. It is complex, and you need the right lawyer, real estate professional, lender, appraiser, inspector, and seasoned investor. The majority of North Americans buy high and sell low when it comes to real estate and investments.

I’ve asked one of those podcasters to let me debate or discuss his ideas with him so we all better understand them. I'm not sure he wants the Truth about Real Estate to be out there. So that is my version. Be careful.

To learn more about this or other topics, subscribe to my podcast on iTunes or wherever you get yours.

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