We know that sounds a little over the top. But after sharing a Grant Cardone script last week, people went crazy in the comments. 

Sure, we get it, not everyone likes Cardone. Just because we shared one thing he said, doesn’t mean we agree with everything he says. 

That brings us to his advice for Gen Z. 

Grant Cardone’s advice to anyone under 30 years old

On Sunday, December 10th, Grant Cardone sent out an Instagram post with the title, “Grant Cardone’s advice to anyone under 30 years old

My advice to all young people: Never buy a home—ever—until you’re super-wealthy. Then you buy a home. ‘Til then, invest in yourself, invest in your business, and invest in real estate for cash flows. 

Now, the audience is gonna say, ‘But where am I gonna live?’ You’re gonna rent. You’re gonna rent where you live, and you’re gonna take the money that you would normally use to buy a house, and you’re gonna use that to build yourself, build your business, or invest in other real estate that pays you income.

Grant Cardone

So, to paraphrase, unless a 20-something person is super-rich, they should NOT buy a home to live in. But they should buy homes as investment properties to rent out for income. 

While his advice got plenty of love in the comments, not everyone was on board: 

  1. “Buying a house is investing in yourself tho.” — CMGVFML (@cmgvfml)
  2. “Uncle G, I love you man but this ain’t it brother, not everyone can do what you said because you have to already made it to do this advice. It always easy for rich people to do things meanwhile at least 45% others can’t even afford to rent an apartment in todays world. I think this advice belong to the 1% of people like you man. Love💯” — John Edoard (@dapper_johnn)
  3. “I get where he’s coming from but for people that don’t plan to invest in real estate, owning a long term home is the best investment the average consumer can make.” — Jim Hocking (@jimhocking)
  4. “My mortgage is way lower than the average rent. I’m not sure it’s an advice that applies to everyone.” — Laura Salazar G (@laurasg1122)
  5. “But my mortgage that I got 3 years ago is significantly cheaper than renting. I have $200K worth of equity. And I have such a large amount of property compared to the home, that I built an office on the same property and do my business from there and don’t have to rent office space. Not sure this information applies to Southern California.” — Grant Me Peace @instagrant_hypnohealer

We hesitate to call advice “bad” if it can actually bring benefit to someone. After all, it’s not a bad idea to invest in real estate for the sole purpose of earning rental income.

But considering a homeowner’s net worth is substantially higher than that of a renter—75 times greater, according to Divvy—telling 20-somethings they should NOT buy a home to live in even if they’re financially capable of doing so…is definitely not the best advice. 

At least, it qualifies as bad advice for Gen Z home buyers who are ready and able to buy and maintain a home they intend to live in. They don’t have to be super-rich, though, in today’s market, they do need to bring in more than the median U.S. income to realistically afford a median-priced home. 

Nothing says they can’t embrace house-hacking to earn rental income while still living in the home. But nothing says they have to, either. 

That’s a decision each homebuyer has to make, based on their unique circumstances. 

“Invest in yourself” 

For some readers, Cardone’s advice to “invest in yourself” sounds contradictory after he’s just told them not to buy a home to live in. 

True, he does encourage his audience to invest in rental properties—which, someday, they could choose to live in. But his advice would seem to shut down the idea of renting a duplex or townhome and renting out the attached units while living in one of them. 

That is, after all, what some Gen Z investors have done and continue to do to build their real estate/investment portfolio and earn rental income. And we’ve applauded them for it. 

For many would-be buyers out there, of all ages, renting makes more financial sense for the time being, so they can pay off debt, build or repair their credit, and improve their financial well-being overall in preparation for buying a home. 

This is especially true of those who’ve been turned away by lenders due to low credit scores or high debt-to-income ratios. 

We agree there’s nothing wrong with people putting homeownership on hold to work on improving their financial situation while they rent for as long as they need (or want) to.

As their go-to real estate guide and educator, you can still be part of their decision-making process. For one, you can help them develop a timeline that will motivate them to make financial decisions that align with their goals

Blanket solutions for all would-be buyers and investors of a certain age make attention-grabbing headlines. But they rarely qualify as good advice. It’s all about the context

Get to know your clients well enough to understand exactly what they need from you.