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A survey by LendingTree shows 94% of Americans consider homeownership part of the American dream. But real estate tycoon Grant Cardone thinks otherwise.
“No matter how much you guys complain about rent, it is still half of what it costs to live in that piece of s— house that you call the American dream,” Cardone says in a post on his YouTube channel. “A house is a terrible investment.”
The data supports his claim: Bankrate analysis reveals buying a home is 37% more expensive than renting, with renting being the cheaper option in all major U.S. metros.
Cardone’s argument? Skip homeownership, save the difference, and invest in assets with better returns.
Rental properties
While Cardone criticizes owning a home for personal use, he’s a staunch advocate for owning rental properties. “A rental property will always make more money than a house will,” he says. That’s because rental properties generate cash flow, offer tax advantages, and appreciate over time — making them a triple threat for investors. In the third quarter of 2024, the average gross rental yield across the U.S. is 6.1%, according to GlobalPropertyGuide.
For those who want the benefits of owning rental properties without the headaches of being a landlord, Arrived is a strong alternative to applying for a mortgage.
Arrived offers SEC-qualified investments in rental homes and vacation properties starting at just $100. Their platform handles all the details, from property management to tenant interactions, so you can focus on building your portfolio. It’s a simple and affordable way to enter the real estate market, even if you’re not an accredited investor.
If you are an accredited investor and looking for higher-end opportunities, DLP Capital specializes in private real estate funds tailored for accredited investors, with a focus on high-demand rental markets.
DLP Capital’s proven ability to identify high-potential properties allows investors to benefit from real estate’s long-term appreciation and consistent cash flow.
Unlike owning a home, which ties up resources without generating income, investing in rental properties through firms like DLP Capital gives you a potential stable revenue stream, regardless of fluctuating market conditions. This is ideal for diversification and financial growth.
Commercial real estate
Also, real estate investors are not restricted to residential properties.
Grant Cardone emphasizes the importance of investing in assets that generate consistent returns, and commercial real estate perfectly aligns with his philosophy of making smart money moves.
Commercial real estate such as data centers, malls, industrial warehouses, farmland and grocery-anchored retail centers could offer higher yields.
These properties tend to perform well, even during economic downturns, thanks to their necessity-based nature. First National Realty Partners (FNRP) deals in commercial real estate and provides accredited investors access to those assets which include buildings leased by major retailers including Walmart, Kroger, and Whole Foods.
You can engage with experts, explore available deals and easily make an allocation, all through one personalized portal.
Stocks
Stocks have long been a reliable vehicle for building wealth. Historically, the U.S. stock market has outperformed the housing market.
From 1992 to 2024, the S&P 500 delivered annualized returns of 8.41% — a significant edge over the 6.1% annualized return for the housing market. And that’s before factoring in reinvested dividends, which can boost the S&P 500’s performance to an impressive 10.24%.
For investors looking to harness this growth, having the right tools and insights is essential. That’s where Moby comes in.
Moby is an investment research platform authored by former hedge fund analysts who distill complex market data into actionable stock picks. Over the past four years, Moby’s recommendations have outperformed the S&P 500 by an average of nearly 12%. Their easy-to-understand reports are perfect for investors who want to make informed decisions without getting lost in financial jargon.
You can become a wiser investor in just five minutes — and their expertise is supported by a 30-day money back guarantee. But knowing what to invest in is only half the battle. You also need a platform that simplifies the investment process.
Public stands out with its commission-free structure, fractional share investing, and user-friendly interface.
Unlike robo-advisors, Public provides control without automated management, promoting transparency by rejecting payment for order flow in favor of an optional tipping model.
If you’re looking for a community-driven approach, with real-time insights and social features that empower users to make smarter financial decisions, this might be hard to beat.
Cryptocurrency
Cardone isn’t shy about highlighting cryptocurrency’s potential, noting that “any cryptocurrency” would have outperformed the housing market historically.
To be fair, comparing crypto to real estate isn’t exactly straightforward. Over the past 12 years, Bitcoin has delivered a 100.68% compounded annual growth rate when measured in U.S. dollars, according to Curvo.
But crypto is notoriously volatile, and not all tokens are created equal. Failures like FTX and LUNA remind investors that risk management is crucial. If you’re considering dipping your toes into the crypto waters, Robinhood offers a straightforward way to get started on its commission-free platform.
Robinhood makes investing in cryptocurrency simple and accessible, even for beginners. With features like automatic investing, in-app guides, and the ability to buy fractional shares starting at just $1, it’s easy to diversify your portfolio without a large upfront commitment.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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