Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below.
Grant Cardone has built a multibillion-dollar real estate empire, but he has no interest in owning the roof over his head. The outspoken investor, known for buying and managing thousands of rental units, chooses to rent his primary residence—and says you should, too.
“I’d rather pay $2,400 in rent than $2,400 in mortgage,” he said in an interview with YouTuber Kevin Cooney, a clip that’s since made the rounds on TikTok. “Because I can get out of that rent every 10 months. That mortgage is 30 years.”
For most Americans, owning a home is the cornerstone of the American Dream. For Cardone, it’s just a liability wrapped in granite countertops. He doesn’t see the place you live in as a financial asset at all.
Don’t Miss:
-
The same firms that backed Uber, Venmo and eBay are investing in this pre-IPO company disrupting a $1.8T market — and you can too at just $2.90/share.
-
Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.” Here’s how you can earn passive income with just $100.
“If you live in your home and you pay the expenses of the home, that is not an investment,” he told Cooney. “That is an expense by definition. And by the way, your home should not even go on your net worth statement.”
Cooney agreed, pointing out the hidden costs that often blindside homeowners. “Our refrigerator breaks, I put a little thing in our portal; new fridge is getting dollied up there,” he said. “It’s a fixed cost.” He added that a friend of his always busts his chops for paying $4,700 in rent while the friend pays $3,500 on a mortgage—but for him, not having to deal with repairs or surprise expenses is worth the premium.
Cardone backed him up, saying that friend isn’t doing the full math. “He’s not counting his HOA fees, he’s not counting property taxes, he’s not counting out-of-control insurance, he’s not counting maintenance,” he said. “It’s 1% a year. Property taxes 2% a year. So that’s 3 points every year.” And then there’s the mortgage interest. “Pick a number. They all suck dude,” he added, referring to rates that can range from 3 to 7 percent.
Those costs aren’t imaginary. According to Bankrate, the hidden expenses of owning a single-family home now average over $21,000 per year—before mortgage payments. From property taxes to repairs, it’s a long list of things that drain your wallet without building equity.
Cardone’s stance isn’t about avoiding debt—it’s about who’s paying it. “I would rather pay 7% on a mortgage that a renter pays than 3% on my home that I pay,” he said. In other words, he’s fine with high interest—as long as someone else is covering it.
It’s a mindset he’s repeated for years. In a 2019 interview with DJ Vlad, Cardone delivered one of his most memorable one-liners: “I treat houses like hospitals—you get in, you get out.” His reasoning was blunt. “You could live in a house for 15 years with a 30-year mortgage and still owe what the house was worth when you bought it—or worse.”
Critics are quick to point out that Cardone profits directly from this philosophy. By encouraging the public to rent, he widens the pool of tenants for the very properties he owns. The cash flow goes to him, not the renters. But even if his motives are self-serving, the model is hard to argue with—own the asset, rent it out, and let someone else build your wealth.
That formula used to be reserved for moguls with deep pockets and a Rolodex of property managers. Arrived lets regular people get in on the game—owning slices of rental homes without lifting a wrench or hunting down tenants. You can get started with as little as $100, while they handle the headaches and you collect the passive income.
Cardone isn’t dismissing the value of homeownership—if buying a house aligns with your goals, that’s great. He’s simply pointing out that renting doesn’t deserve the stigma it often carries. For some, it’s the smarter financial move. For others, it’s about flexibility, avoiding repair headaches, or not wanting to chase down contractors every time something breaks. Maybe it’s about not being tied to a mortgage when life changes. Whatever the reason, owning isn’t the only path—and renting doesn’t make you any less savvy for choosing it.
See Next:
-
This HELOC lender lets you borrow, repay, and borrow again — all on your terms, and a mid-600s credit score could be enough to qualify.
-
‘Scrolling To UBI’ — Deloitte’s #1 fastest-growing software company allows users to earn money on their phones. You can invest today for just $0.30/share.
This article Grant Cardone Insists A Home Is ‘Not An Investment, It’s An Expense, By Definition’ — ‘I’d Rather Pay $2400 in Rent Than $2400 in Mortgage’ originally appeared on Benzinga.com
Terms and Privacy Policy
Yahoo News – Latest News & Headlines
Read the full article .
