Cardone says US mortgages should drop to 3% to fix housing

American productivity warrants the lowest interest rates on earth. The United States possesses the dominant global currency, yet citizens struggle under the weight of unaffordable mortgages. The government possesses the tools to fabricate synthetic, low-interest money backed by federal guarantees. Slashing rates to a fixed 3% would restore affordability and stability to the domestic market. While some critique the cost of such subsidies, current geopolitical spending often exceeds these figures with fewer tangible benefits for the American taxpayer.

The Renting Advantage in Premium Markets

In cities like Miami and Las Vegas, the financial math of homeownership has fundamentally broken. Renting currently costs roughly 50% of a comparable mortgage payment. Beyond the principal and interest, homeowners face Homeowners Association (HOA) fees, property taxes, and insurance premiums that can exceed the cost of rent alone. Savvy residents avoid 'dead money' tied up in equity, opting instead for the mobility and amenity-rich lifestyle offered by modern apartment complexes. This shift reflects a broader preference for walkable neighborhoods and immediate access to services over the traditional suburban commute.

Tax Inequity Between Families and Investors

Federal tax codes currently favor institutional giants like Blackstone over the individual homeowner. Real estate moguls like Grant Cardone utilize bonus depreciation to write off massive percentages of an asset's value in the first year, often resulting in a zero-dollar tax bill. These rules should extend to single-family homes. Allowing a primary resident to accelerate 27 years of depreciation into the first year would provide an immediate, transformative tax write-off. Current laws also trap homeowners by preventing them from claiming capital losses on primary residences, even as they are taxed on gains that haven't been adjusted for inflation since the late 1990s.

Reimagining the American Asset

The government should eliminate the $750,000 cap on mortgage interest deductions and significantly raise the capital gains exclusion. Donald Trump has signaled openness to these aggressive tax maneuvers, including accelerated depreciation for individuals. By treating a home more like a business investment and less like a tax liability, the government could unlock massive consumer spending power. If an average worker receives a $400,000 write-off, that capital stays within the local economy, fueling growth rather than vanishing into federal coffers.