Renting Saves $400 Per Month Over Buying in 2025. Real Estate Mogul Grant Cardone Says Take Those Savings And Park It Here For Returns On Investment

Core Insights - Renting a home currently saves nearly $400 per month compared to owning, raising questions about the financial viability of homeownership in the U.S. [1] Cost Analysis - A financial planner calculated that owning a $430,000 home with a 6.75% mortgage rate results in total monthly costs of approximately $2,950, while renting a comparable property costs about $2,550, indicating significant savings in renting [2] - Hidden costs of homeownership, including property taxes, insurance, and maintenance, are often underestimated, with a 2024 Bankrate study estimating these expenses at around $18,000 annually [4] Investment Perspective - Real estate mogul Grant Cardone advocates for renting and investing the savings into income-generating properties, suggesting that capital tied up in a home should be utilized more effectively [2][3] - The opportunity cost of a down payment, such as $80,000, could yield significant returns if invested elsewhere, allowing renters to benefit from lower housing costs while potentially building wealth through cash flow [6] Flexibility and Mobility - Renting offers greater flexibility compared to homeownership, especially in a market with high mortgage rates and rising prices, which can lock up liquidity [5]