It’s Time to Embrace Renting

Personal finance

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Every single person I encounter thinks that home ownership is the best option. Nobody wants to rent. Renting is often viewed as “throwing money away.” Why would you want to throw money away when you can buy a home? That’s what everyone says about this topic.

I have different thoughts on this topic. I think that renting is a strong option. There’s absolutely nothing wrong with choosing to rent instead of owning.

What are the benefits of renting? Why should you consider renting instead of buying?

You can save money.

When you rent a place, you just pay your monthly fee and that’s all you have to worry about. The rest of your money can be put towards savings or whatever else that you want to do in life. You don’t have to put every single penny into your home. For some of us, we just need a roof over our heads.

Renting doesn’t come with any hidden fees.

As mentioned above, you only pay your rent and nothing else. A home comes with the following hidden fees that you would’ve never expected:

  • Increased consumption due to more expenses.
  • Property taxes.
  • Fixing equipment around the home.
  • The time it takes to do work around the place.

Can you handle all of those hidden expenses that come with buying?

You have the option to travel more.

As a home owner, you might get financially strapped dealing with the bills. You also don’t have any flexibility because you have to make your mortgage payments or else you lose your home. This limits your ability to travel or do anything interesting in life. I rented out my condo last fall so that I could have more money to play with and to travel. The first thing that I did was buy ┬áticket to Poland for a month all on my own.

Do you want to travel more? Would you rather spend the money on house-related bills.

Those are the benefits of renting. Now I want to ask you: why don’t you consider renting?

My experiment for today is simple. I want you to run the numbers. Don’t just follow your gut or listen to what conventional wisdom tells you. Do some actual calculations before making this decision. This means that you factor in all of the costs associated with buying a home. Then compare it to renting. Then factor in your savings/income.

Are you able to buy a home? Would you be better off renting for now? This is for you to decide after running the numbers.

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