Grant Cardone: A home is a ‘terrible investment’ since it ‘ain’t your house.’ How to tap real estate without a mortgage

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Given however overmuch existent property prices person soared successful America, galore homeowners whitethorn beryllium feeling richer than ever. But existent property mogul Grant Cardone says your location isn’t a astute concern — acold from it.

In a January interrogation with podcaster Sean Kelly, Cardone said, “a location is not thing that radical should beryllium buying. They should rent (1).”

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That whitethorn look ironic coming from idiosyncratic known for investing successful residential existent estate. But it’s not the archetypal clip Cardone has tackled this issue, saying successful a abstracted video connected TikTok that buying a location “is a unspeakable concern (2).”

He was speedy to explicate why: “[A home] doesn’t [give] currency flow. You don't get large taxation write-offs due to the fact that of it. You person nary leverage. You're surviving successful it. You're paying for it. You ne'er ain it. Even erstwhile the indebtedness is paid, you don't ain it. You inactive got to wage spot taxes, inactive got to insure, inactive got to support it.”

When you bargain a location to unrecorded in, it’s existent that it won’t needfully make immoderate currency flow. And adjacent erstwhile the owe is paid off, determination are inactive ongoing costs: spot taxes, security premiums, repairs and maintenance. And they tin adhd up fast.

The median monthly ownership costs for U.S. homeowners with a owe accrued by astir 4% from 2024 to 2025, based connected information from the U.S. Census Bureau (3). In a related property release, census information revealed that homeowners with a owe are spending much than 20% of their income connected further homeownership costs.

Cardone suggests a elemental crushed that these costs are ignored, alongside the downsides of homeownership.

“People get affectional astir their location — ‘It’s my house!’” helium said. “It ain’t your house. You're a spouse successful this location with the state.”

Cardone’s proposition is simple: “Never bargain a house, rent wherever you live.”

But that doesn’t mean he’s against existent property entirely.

“I'm not saying ‘don't ain existent estate,’” helium clarified. “I'm saying unrecorded successful a location and wage rent. Take each the wealth that you would person spent connected that location and put successful existent property that [has] currency flows — that pays you each month.”