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

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Renting a home now saves nearly $400 per month compared to owning, according to new analysis, sharpening the debate over whether the American Dream of homeownership still makes financial sense.

Financial planner Kirk Reagan calculated that on a $430,000 home with a 6.75% mortgage rate, property taxes, insurance, and maintenance push total costs close to $2,950 a month. Renting a comparable property came in at about $2,550. That gap, he said, shows "a significant monthly cost savings to rent."

It's the kind of math that real estate mogul Grant Cardone has been pounding the table on. Cardone, who has built a massive portfolio of rental units, says the smarter move is to "rent where you live" and direct capital into properties that actually generate income. "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," he told followers in a recent Instagram clip.

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It’s a perspective that has fueled the rise of platforms that allows everyday investors to do what Cardone suggested. Services now exist that let individuals put that $400 in monthly savings that Reagan identified into income-producing properties; a nod to Cardone's argument that money tied up in a home should be working harder in real estate that pays you back.

The true cost of ownership

Beyond mortgage payments, experts stress that the hidden costs of ownership are often underestimated. Christopher Stroup of Silicon Beach Financial points to property taxes, insurance, and upkeep as equity-eaters that can erode returns faster than expected. A 2024 Bankrate study pegged those "hidden expenses" at roughly $18,000 annually.

And unlike a rental contract, those obligations don't disappear when the loan is paid off. "Even when the loan is paid, you don't own it. You still have to pay property taxes, insure it, maintain it," Cardone said.

Renting also preserves flexibility at a time when mobility matters. With mortgage rates still above 6% and prices climbing in many markets, committing to ownership can lock up liquidity that might be better used elsewhere.

Reagan noted that with an $80,000 down payment, the opportunity cost alone is high. Invested at an 8% annual return, that capital could grow while a renter benefits from lower monthly housing costs. For households thinking beyond the math, that difference can be redirected into income-producing assets, creating the very kind of cash flow Cardone argues builds wealth.

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Renting doesn't just buy flexibility, it can also buy time. Time to let the market stabilize, time to deploy capital into assets that cash flow, and time to build wealth outside the four walls you live in.

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Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Arrived Homes

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Worthy Bonds

For those seeking fixed-income style returns without Wall Street complexity, Worthy Bonds offers SEC-qualified, interest-bearing bonds starting at just $10. Investors earn a fixed 7% annual return, with funds deployed to small U.S. businesses. The bonds are fully liquid, meaning you can cash out anytime, making them attractive for conservative investors looking for steady, passive income.

IRA Financial

Self-directed investors looking to take greater control of their retirement savings may consider IRA Financial. The platform enables you to use a self-directed IRA or Solo 401(k) to invest in alternative assets such as real estate, private equity, or even crypto. This flexibility empowers retirement savers to go beyond traditional stocks and bonds, building diversified portfolios that align with their long-term wealth strategies.

Range Wealth Management

Range Wealth Management takes a modern, subscription-based approach to financial planning. Instead of charging asset-based fees, the platform offers flat-fee tiers that provide unlimited access to fiduciary advisors along with AI-powered planning tools. Investors can link their accounts without moving assets, while higher-level plans unlock advanced support for taxes, real estate, and multi-generational wealth strategies. This model makes Range especially appealing to high-earning professionals who want holistic advice and predictable pricing.

American Hartford Gold

For investors concerned about inflation or seeking portfolio protection, American Hartford Gold provides a simple way to buy and hold physical gold and silver within an IRA or direct delivery. With a minimum investment of $10,000, the platform caters to those looking to preserve wealth through precious metals while maintaining the option to diversify retirement accounts. It's a favored choice for conservative investors who want tangible assets that historically hold value during uncertain markets.

This article 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 originally appeared on Benzinga.com

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