The housing market has shifted in 2025. Home prices have stabilized in many regions across Canada, but only after years of rapid gains. Plus, interest rates are once again falling, as the Bank of Canada continues its easing cycle. (The current overnight rate is 2.5% as of September 2025.) Yet, housing affordability remains a major concern, leaving buyers divided on whether homeownership is a smart move or a costly emotional decision and prompting real estate investors to re-run their numbers.
Against this backdrop, real estate mogul Grant Cardone’s criticism of homeownership — calling it “a terrible investment” during an interview with podcaster Sean Mike Kelly — still stirs debate among Canadians weighing rent versus buy decisions.
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Cardone’s criticism of homeownership may sound ironic given how he made his fortune investing in residential real estate. But Cardone was quick to explain why: “[A home] doesn’t [offer] cash flow. You don’t get big tax write-offs because of it. You have no leverage. You’re living in it. You’re paying for it. You never own it. Even when the loan is paid, you don’t own it, no, you still got to pay property taxes, still got to insure, still got to maintain it.”
When you buy a home to live in, it’s true that it doesn’t generate any cash flow. And even once the mortgage is paid off, there are still ongoing costs: property taxes, insurance premiums, repairs and maintenance. And they can add up fast.
While mortgage rates have come down from 2024 highs — with 5-year fixed rates now hovering around 4.2% — homeowners still face hefty ongoing costs: property taxes, insurance, and maintenance. A recent Ratehub.ca analysis (1) shows that even with today’s lower rates, the average homeowner in major Canadian cities still spends over $3,000 a month in non-mortgage costs alone. For many, the emotional appeal of owning a home often outweighs its financial drawbacks.
Cardone says that what keeps people from recognizing the financial downsides is emotion.
“People get emotional about their house — ‘It’s my house!’” he said. “It ain’t your house. You’re a partner in this house with the state.”
Read more: Are you drowning in debt? Here are 3 simple strategies to help crush your balance to $0 in no time
‘Never buy a house’ says Grant Cardone
Cardone’s suggestion is simple: “Never buy a house, rent where you live.”
Cardone’s message isn’t anti-real estate — it’s anti-dead equity. Instead of pouring money into a property that doesn’t produce cash flow, he advocates investing in income-generating assets such as REITs, rental properties, or diversified stock portfolios.
“I’m not saying don’t own real estate,” he clarified. “I’m saying live in a house and pay rent. Take all the money that you would have spent on that house and invest in real estate that cash flows — that pays you every month.”
For Canadian investors looking to follow that logic, the key is finding assets that work for you, not ones you have to work for.
Invest in retail real estate, instead
Cardone pointed to retail real estate as one potential opportunity — but not all retail is created equal.
Even with e-commerce dominating consumer habits, retail real estate tied to essential goods and services — grocery-anchored plazas, pharmacies, and medical offices — continues to show resilience. Analysts report steady 2025 lease renewals across Canada’s top markets, as demand for in-person shopping and healthcare services remains stable.
Ben Mallah, another fellow Florida-based real estate mogul, says he focuses on what he calls “essential real estate” — specifically, “retail that the internet can’t hurt” and “Amazon can’t hurt.”
Before diving into any real estate investment, it’s smart to understand the market forces. One good option is to educate yourself, while tracking the trends, using stock analysis tools, such as The Motley Fool, which offers insight into top-performing REITs and dividend-paying property stocks, helping investors identify opportunities that align with Buffett- and Cardone-style “cash-flow first” investing.
Explore The Motley Fool latest REIT picks to start your wealth-building strategy, today.
Invest in residential real estate, such as apartments
Another type of real estate Cardone suggests? Apartments — a sector Cardone is heavily invested in himself.
Multifamily properties offer a key advantage: consistent cash flow. Unlike single-family homes, apartment buildings typically house multiple tenants, which helps spread out risk. If one unit sits vacant, the others can still generate income.
Turns out, despite fluctuations in interest rates and employment rates, apartment rentals remain a bright spot in 2025. With ownership still out of reach for many and immigration levels remaining strong, rental demand continues to push occupancy rates above 97% in major cities like Toronto and Vancouver. This steady demand helps make multifamily properties one of the most consistent income generators in the real estate market.
For those not ready to buy entire properties, CIBC Investor’s Edge offers a DIY route using real estate investment trusts (REITs), as well as real estate focused exchange-traded funds (ETFs). The platform provides powerful research tools, market data, and educational resources to help you evaluate opportunities like a pro — and build a diversified, income-focused portfolio.
Start learning and investing with CIBC Investor’s Edge.
Invest in farmland
Cardone also mentioned agricultural land — though with a caveat: It’s best suited for those who understand how to make it cash flow positive.
While farmland isn’t as commonly discussed as retail or apartment buildings, it can be a compelling long-term investment. The logic is simple: come what may, people still need to eat. That consistent demand makes farmland a resilient asset, often serving as a hedge during times of economic uncertainty.
According to Farm Credit Canada (2), the national average farmland value increased 9.3% in 2024. Overall, farmland values grow, on average, by about 5% year-over-year. While global trade tensions remain a wildcard, farmland continues to offer long-term value as a tangible asset tied to food production — a timeless necessity.
What 2025 means for real estate investors
The Canadian real estate market has entered a new phase. Prices have cooled, but affordability remains tight, and interest rates have finally dropped — opening the door for investors with patience and strategy.
Whether you choose REITs, farmland, or small-cap property developers, the key takeaway echoes Cardone’s advice: your home isn’t your best investment — but real estate can be, if it pays you back.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Ratehub: Monthly carrying costs when buying a home (1); Farm Credit Canada: 2024 farmland values in Canada: Continued, steady growth (2)
This article originally appeared on Money.ca under the title: Grant Cardone says ‘It ain’t your house!’ — but here’s how to make real estate a smart investment in 2025
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