'Take All Your Money And Invest In Properties That Cash Flow — Live In A House And Pay Rent' Real Estate Guru Grant Cardone Says Don't Buy A Home

Core Perspective - Grant Cardone argues that buying a home is a poor investment, especially in the current market with mortgage rates around 6.35%, which are at their lowest in nearly a year [1][5]. Group 1: Investment Strategy - Cardone emphasizes that homeownership does not provide cash flow, significant tax benefits, or leverage, and that even after paying off a mortgage, ongoing costs such as property taxes and maintenance remain [2]. - He advocates for renting instead of owning, suggesting that individuals should invest the money they would have spent on a home into income-generating real estate [2]. Group 2: Financial Implications - A 2024 Bankrate study indicates that the "hidden expenses" of homeownership can total nearly $20,000 annually when accounting for taxes, insurance, maintenance, and utilities, which could be better utilized in income-producing assets [3]. - The rise of fractional property platforms allows everyday investors to invest in rental properties for as little as $100, providing a way to earn passive income without the responsibilities of traditional homeownership [4]. Group 3: Market Conditions - Following a recent Federal Reserve interest rate cut, mortgage rates have decreased from nearly 7% to 6.35%, leading to median housing payments being at a nine-month low, although housing prices are increasing due to limited inventory [5]. - The market shows signs of fragility, with pending sales only up 0.8% year over year, indicating a struggle between affordability and supply shortages [5].