Grant Cardone warns of ‘biggest real estate correction’ in his lifetime within 12 months — here’s where he identifies ‘tremendous opportunity' for savvy investors
Prolific real estate investor Grant Cardone is sounding the alarm on significant changes within his industry.
During a recent conversation on Fox Business with host Charles Payne, Cardone shared a grim forecast for the real estate market.
Don't miss
Commercial real estate has beaten the stock market for 25 years — but only the super rich could buy in. Here's how even ordinary investors can become the landlord of Walmart, Whole Foods or Kroger
Car insurance premiums in America are through the roof — and only getting worse. But 5 minutes could have you paying as little as $29/month
These 5 magic money moves will boost you up America's net worth ladder in 2024 — and you can complete each step within minutes. Here's how
“We’re going to have the biggest real estate correction we've ever had here in the next 12 months,” he said. “It'll be monster, and it will hit Gen Zs in a way that they'll never touch that asset class again.”
The implications of major real estate downturns are profound, as evidenced by the Great Recession in the late 2000s — in which millions of Americans defaulted on their mortgages and lost their homes.
This time, however, Cardone believes the impact will be unprecedented and focused primarily on larger developments rather than single-family homes. And if Cardone’s predictions are true, a certain group of investors are likely to benefit from this correction.
Generational wealth redistribution
For most people, the single-family home is still thought of as the most accessible and familiar real estate asset. Multi-unit properties, by contrast, have typically been beyond the reach of the average American.
However, Cardone believes this dynamic is set to change.
“You have major institutions that are releasing assets back to regular, ordinary, everyday people,” he said. “Institutions are having to let those properties go because their debt is due.”
According to Cardone, this presents a tremendous investment opportunity for regular Americans. He even thinks it could serve as a gateway to substantial opportunities for all age groups, particularly Gen Z.
“This is true generational wealth redistribution,” he argues.
Read more: Car insurance rates have spiked in the US to a stunning $2,150/year — but you can be smarter than that. Here's how you can save yourself as much as $820 annually in minutes (it's 100% free)
‘I guarantee it’
Cardone is no stranger to making bold statements. After all, the man once called buying a home “the worst investment people can make.”
Instead, Cardone favors rental properties, seeing them as a more robust investment. In fact, despite anticipating a significant market correction, he remains confident about the future of this asset class.
“I'll make a prediction right now… real estate will be the number one [investment] category by the year 2026, for all age groups. I guarantee it,” he told Payne, outlining several of its advantages.
“It’s easy to leverage, protects you against inflation, benefits from rent increases, and provides cash flow that people have to have today,” said Cardone.
He makes a compelling argument: real estate is widely recognized as an effective hedge against inflation. As the price of raw materials and labor goes up, new properties are more expensive to build. This can drive up the price of existing real estate.
Well-chosen properties offer more than just potential for price appreciation. Investors also get to earn a steady stream of rental income. Plus, rental rates typically rise with inflation, further enhancing the investment’s value over time.
The best part? You don’t need to be a real estate mogul like Cardone to own rental properties. These days, there are many real estate investment trusts (REITs) and crowdfunding platforms that enable everyday Americans to earn rental income without becoming a landlord.
So, while there may be some facts to face for single-family homeowners over the next year, there could be a new investment to seize just a few blocks away.
What to read next
Cost-of-living in America is still out of control — use these 3 'real assets' to protect your wealth today, no matter what the US Fed does or says
Jeff Bezos and Oprah Winfrey invest in this asset to keep their wealth safe — you may want to do the same in 2024
Stop crushing your retirement dreams with wealth-killing costs and headaches — here are 10 'must-haves' when choosing a trading platform (and 1 option that has them all)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
