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Buying and owning a house is often considered a significant financial investment and a milestone in personal wealth building. However, economist Peter Schiff believes that this notion is simply not true.
During a recent appearance on the Iced Coffee Hour podcast, hosted by Graham Stephan and Jack Selby, Schiff was asked about the common belief that, for many, a house represents their primary means of saving.
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Schiff, who runs Euro Pacific Capital, strongly disagrees with this perspective.
“A house depletes your savings. It’s a money pit,” he said. “It’s crazy the amount of money that a house costs you.”
Proponents of homeownership often argue that property values appreciate over time. For example, the average sales price of new houses sold in March 2025 was $497,700, compared to $492,700 in February, according to the U.S. Census Bureau.
But not everyone is convinced that this trend tells the whole story.
“People think, ‘Oh, the house appreciates’ — not always,” Schiff cautioned. “It’s inflation that’s doing it. All that’s happening is your land is keeping pace — but houses don’t.”
This raises an important point. If inflation is the main driver, is owning physical property the only way to benefit from rising real estate values?
Not necessarily.
Here are a few other ways to invest in real estate without the burden of a mortgage, maintenance or timing the market.
From $500,000 to $1 million?
If you bought a house years ago and sold it today, chances are you will receive more than the purchase price.
However, Schiff cautions that these sales often have significant caveats.
“Even if somebody tells you, ‘Oh, here’s this house that I sold for $1 million and I bought it, whatever, 10, 20 years ago for $500,000,’” he said. “If you think about all the money they put into that house over that period of time, they may not have made any money.”
He explained that houses can require significant upgrades, which can be costly.
Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it
For investors who want exposure to the real estate market without the headaches of ownership, maintenance and costly upgrades, the U.S. home equity market offers opportunity.
This $36 trillion market has historically been the exclusive playground of large institutions.
But Homeshares is changing the game by allowing accredited investors to gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
The fund focuses on homes with substantial equity, utilizing Home Equity Agreements (HEAs) to help homeowners access liquidity without incurring debt or additional interest payments.
This approach provides a hands-off way to invest in high-quality residential properties with the added benefit of diversification across regional markets. Minimum investments start at $25,000.
With risk-adjusted target returns ranging from 14% to 17%, the U.S. Home Equity Fund could unlock lucrative real estate opportunities, offering accredited investors a low-maintenance alternative to traditional property ownership.
Buying vs renting
The choice between buying and renting a home hinges on factors like your finances, lifestyle, local market trends and interest rates. While home ownership is a personal decision, Schiff believes one option often makes more sense.
“It depends on your circumstances and where the home is located,” Schiff said. “But for a lot of people — and this has been the case for a long time — renting is a better option.”
His advice? Save the money you’d spend on homeownership and invest it instead.
Schiff also points to government policies that have skewed the housing market, such as tax breaks for mortgage interest that aren’t available to renters. Add a sharp rise in interest rates — from about 3% three years ago to nearly 7% today — and the case for buying can become weaker for many.
Beyond the purchase price, homeownership comes with hidden costs like maintenance, upgrades, insurance and property taxes.
But you can still benefit from rising real estate values and generate income — without being a landlord.
One option is tapping into this market by investing in shares of real estate through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, potentially earning passive income without the headaches of being a landlord.
How it works is simple: Browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
