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Sean Cate
Sean Cate
January 10, 2024 ·  3 min read

Self-Made Millionaire Says You Probably Shouldn’t Buy a Home Unless You Like Wasting Your Money

Being able to buy a home has for a time long been synonymous with the American dream. It has symbolized stability, success, and financial security. However, the narrative is being challenged by self-made millionaire Grant Cardone, and echoed by other financial experts like Robert Kiyosaki, who question the wisdom behind investing in a personal residence.1

Buy a home: An Illusion of Wealth?

Grant Cardone, a prominent figure in real estate, deems homes as liabilities rather than assets. He emphasizes that there is a financial drain that homeownership can have, “Owning a home takes money out of your pocket: mortgage payments, property taxes, and repairs are just a few of the many expenses that come with homeownership.”

A common misconception is the belief that when you buys a home it guarantees a profitable return. However, Cardone and experts alike emphasize that after accounting for expenses like interest, taxes, and real estate fees, the actual return might be significantly less than anticipated.2

Rethinking Investment Strategy When You Buy a Home

Cardone’s stance pivots towards viewing homeownership as a lifestyle choice rather than a financial investment. He encourages prioritizing building income-generating assets before considering purchasing a personal residence. Grant lays it out pretty bluntly, “Unless you have 20 million bucks in the bank, in cash, you have no business buying a house.”

Grant Cardone’s personal experience adds weight to his argument. Despite his success in real estate, he realized that investing in rental properties rather than a personal home significantly contributed to his wealth accumulation.

The allure of homeownership often overshadows the substantial costs associated. Cardone breaks down the financial implications, emphasizing that while home values may appreciate, the accrued costs can significantly diminish the apparent gains.

“True real estate investments provide you with monthly passive income — or cash flow — after all the mortgage payments, property taxes and maintenance,” Grant says. The absence of cash flow limits the property’s financial potential and ties its value solely to the housing market’s fluctuations.

Additionally, compared to income-generating real estate, the tax benefits of when you buy a home for personal residence are limited. Cardone continues, ”when you go from investing in your house to investing in income-producing real estate, the tax benefits skyrocket.” This creates a stark contrast in favor of investing in income-producing properties, allowing for favorable tax deductions.

Read: Family Rejects Huge Offer From Developers To Keep Their Land And ‘Dream Home’

A New Perspective on Wealth Creation

While the dream to buy a home remains alive for many, Grant Cardone’s perspective challenges the traditional notion of it being a direct path to wealth accumulation. Instead, he suggests exploring alternative investment avenues, such as commercial real estate or the stock market, to build substantial wealth.

Grant Cardone’s stance on homeownership aligns with renowned financial educator Robert Kiyosaki, emphasizing the importance of distinguishing between assets and liabilities. Kiyosaki’s teachings in “Rich Dad Poor Dad” underscore that when you buy a home it can hold personal value, but it might not always serve as a sound financial investment. The investment mogul had this to say, ”I am not saying don’t buy a house. What I am saying is that you should understand the difference between an asset and a liability.” “

Grant Cardone’s insights, backed by personal experience and echoed by other financial authorities, urge individuals to reconsider the traditional belief that homeownership equates to wealth creation. Instead, they propose a shift towards strategic investments that generate income and offer favorable tax benefits, ultimately fostering long-term financial stability.

In essence, while the emotional appeal and societal norms surrounding homeownership persist, Cardone’s advice prompts a critical reassessment of its true financial value. By challenging conventional wisdom, he advocates for a more pragmatic approach to wealth creation, suggesting that true assets are those that generate income and contribute to long-term financial growth.

In the realm of personal finance, Grant Cardone’s counsel serves as a thought-provoking guide, encouraging individuals to discern between financial security and the emotional allure behind deciding to buy a home.

Note: The insights presented in this article are derived from the viewpoints expressed by Grant Cardone and Robert Kiyosaki and are not intended to discredit the value of homeownership but rather to provoke critical thinking regarding its financial implications.

Keep Reading: These Are The Disgusting Reasons Why You Should Never Wear Shoes At Home


  1. Self-made millionaire: Don’t buy a home.” CNBC. Kathleen Elkins. June 18, 2017.
  2. Self-made millionaire: ‘Don’t buy a home—unless you can afford to waste money’.” CNBC. Grant Cardone. August 11, 2022.