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:
“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.
