Grant Cardone says owning a home in the US isn’t an ‘investment’ if you live there — and he’d rather pay rent
Kevin Cooney/YouTube
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.
To buy or to rent? It’s one of the most enduring financial debates — and for good reason. For most people, buying a home is the biggest financial decision they’ll ever make.
While the choice is deeply personal and depends on individual circumstances, real estate mogul Grant Cardone says there’s no debate at all.
“I’d rather pay $2,400 in rent than $2,400 in mortgage, because I can get out of that rent every 10 months — that mortgage is 30 years” he said in an interview with YouTuber Kevin Cooney.
Cardone points out that renting offers more flexibility. Lease agreements are shorter and easier to break than the time-consuming process of buying and selling a home. But for him, the bigger difference is how many expenses you’ll have.
“If you live in your home and you pay the expenses of the home, that is not an investment. That is an expense by definition, and by the way, your home should not even go on your net worth statement,” he told Cooney.
Cardone elaborated that homeowners are on the hook for HOA fees, property taxes, ongoing maintenance — and what he called “out of control insurance.”
Those costs can add up quickly. According to a new study by Bankrate, the “hidden costs” of owning a typical single-family home in the U.S. amount to $21,400 in 2025 — covering everything from property taxes and insurance to maintenance, repairs and utilities. And that’s all on top of mortgage payments.
To be clear, Cardone isn’t opposed to owning a property. After all, he’s a seasoned real estate investor who has built a fortune through property deals. But there’s a key distinction: He’s only willing to take on debt when it’s tied to an income-generating asset.
“I would rather pay 7% on a mortgage that a renter pays than 3% on my home that I pay,” he told Cooney.
That’s a bold statement. While many homeowners chase the lowest mortgage rate possible for their primary residence, Cardone believes they’re missing the point. From his perspective, it’s not about the rate — it’s about who’s covering the cost.
Still, it’s important to note that not every rental property will generate enough income to fully cover the mortgage — especially in today’s market. Whether or not the rent offsets your costs depends on several factors, including the property’s location, purchase price, interest rate and local rental demand.
Plus, even if you own a rental property, you’re still on the hook for the usual homeowner expenses — and finding reliable tenants is no guarantee. In fact, being a landlord isn’t exactly hands-off work — managing tenants, maintenance and repairs can quickly eat into your time (and returns).
The good news? You don’t need to buy a property outright — or deal with leaky faucets — to invest in real estate today.
Read more: This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here’s how to buy the coveted asset in bulk
Crowdfunding platforms like Arrived have made it easier than ever for everyday investors to access the real estate market.
The process is simple: Browse a curated selection of homes that have been vetted for their appreciation and income potential. Once you find a property you like, select the number of shares you’d like to purchase, and then sit back as you start receiving positive rental income distributions from your investment.
For accredited investors, Homeshares gives access to the $35 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
Or, you may want to explore First National Realty Partners (FNRP), which allows accredited investors to diversify their portfolio through grocery-anchored commercial properties without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Thanks to Triple Net (NNN) leases, accredited investors are able to invest in these properties without worrying about tenant costs cutting into their potential returns.
Simply answer a few questions — including how much you would like to invest — to start browsing their full list of available properties.
Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. Subscribe now.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
CNN — For months, more than a dozen Hill Republicans have been sounding the alarm about the steep Medicaid cuts in President Donald Trump’s sprawling agenda package, which is now just hours away from becoming law. North Carolina Sen. Thom Tillis called cuts to Medicaid “inescapable.” Missouri Sen. Josh Hawley called Republicans’ targeting of Medicaid
U.S. President Donald Trump said he was “very disappointed” with Russian President Vladimir Putin following a phone call on July 3, during which the two leaders discussed the ongoing war in Ukraine. Trump told reporters he “didn’t make any progress” and accused Putin of showing no willingness to stop the fighting. Trump also said that
CNN — South Korea has recently been hit by another surge of lovebugs. But romance is certainly not in the air for residents of Seoul and neighboring Incheon city, who have been plagued by these pesky insects in recent weeks, as rising temperatures due to climate change spur their spread. On Friday, dozens of government
Ukrainian President Volodymyr Zelensky accused Russia of launching one of its largest air attacks almost immediately after the July 3 call between U.S. President Donald Trump and Russian President Vladimir Putin. “This was one of the most large-scale air attacks—deliberately massive and cynical,” Zelensky posted to X on Friday morning, July 4. He said Russia
Can Trump help repair Israeli ties with Lebanon, Syria?(AP Photo) While the dust is still settling after the 12-day-war between Iran, Israel and the US, diplomacy across the Middle East is on the rise. According to Israel’s Prime Minister Benjamin Netanyahu, “the victory [over Iran] opens the path to dramatically enlarge the peace accords.” Already,
By Shane Croucher is a Breaking News Editor based in London, UK. He has previously overseen the My Turn, Fact Check and News teams, and was a Senior Reporter before that, mostly covering U.S. news and politics. Shane joined Newsweek in February 2018 from IBT UK where he held various editorial roles covering different beats,
Dirham-to-rupee rates hit monthly low for UAE NRIs, prompting analysts to suggest holding off on fund transfers for better returns/Image: ANI Indian expats in the UAE planning to send money home may want to wait a few more days. The Indian rupee has climbed to its strongest level in a month, making dirham-to-rupee rates less
China’s Foreign Minister Wang Yi reportedly told the EU’s top diplomat Kaja Kallas on July 3 that the country cannot afford for Russia to lose the war in Ukraine amid fears the U.S. would shift focus towards Beijing, the South China Morning Post (SCMP) reported, citing sources familiar with the conversation. As the war in
