Grant Cardone says owning a home in the US isn’t an ‘investment’ if you live there — and he’d rather pay rent

Jing Pan

Thu, Jul 3, 2025, 8:36 AM 5 min read

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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.

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“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.