Before I get to the nitty-gritty of this post, I just want to say that everyone’s situation is different. There is no right or wrong answer in the rent vs buy argument. Watch out for the folks that try to tell you that there is. I know about home value appreciation and all the other so-called pros for owning a house, but I’m 100% for renting right now. There’s a lot of advantages to renting right now for me. Some people understand my take on the topic and others don’t. I even have friends who were homeowners but sold their homes because they realized homeownership was overrated.
In the past, owning a home was a part of the American Dream. It’s 2019, and that dream has turned into a damn nightmare for a lot of people. With rising costs, a lot of folks just can’t afford their mortgages. Others can, but that’s about all they can afford. They don’t have enough money saved for emergencies or for vacations. At 35 years old, I’m content with renting for the next few years while I continue to get my finances in order which means paying off this debt and increasing my streams of income. I want to share several reasons why I will be renting for the next couple of years. Hopefully, you’ll understand and see these benefits of renting.
I am in DEBT!
I’m currently still in debt. I’d have to be dumb as hell to add more debt to my situation right now. I still have over $60,000 worth of debt right now. How could I add another $150,000 – $200,000 to that amount? That doesn’t make any sense to me. Some people say there is good and bad debt. I disagree. All debt is bad in my opinion. At the end of the day, it all has to be paid off. I honestly don’t give a damn what other people ( The Joneses) are doing. My primary goal right now is to eliminate my debt. Adding a mortgage to it won’t help me.
Why be tied down?
Why should I be tied down to a house in a city that I may or may not be interested in living in a couple of years from now? I’m still not sure if I found an area that I want to settle down for the long haul yet. I love living in the city, but it’s getting more and more expensive. Who knows what may happen in the future. I could get a job or opportunity that could require me to work abroad or move. Having to worry about a mortgage would add more stress to the situation. My friends at Rich and Regular recently had a dope post on Instagram about homeownership. Check it out here. Being able to move freely is one of the biggest advantages to renting.
Because I’m renting, the only thing that I’m paying for is the deposit, rent, utilities and renters insurance. If I owned a home, I’d have to make a down payment, pay the mortgage, closing costs, property taxes, and deal with items that break on my own. For example, right now, if my refrigerator went out, I’d call my landlord and have another within 24 hours. That actually happened a few years back. If I owned, I’d have to waste time looking for a new fridge and pay for it with my own money. Right now, I’d rather let someone else deal with it.
I love convenience. Renting does that for me. If something breaks, maintenance will come and fix it. I don’t have to worry about using my hard-earned money. Right now I couldn’t imagine having to pay for maintenance items with my own money right now. Because I’m using the majority of my money to pay off my debt, that would deplete my emergency fund. I’m trying to grow that amount, not make it smaller. Another thing is that I don’t have to worry about cutting the lawn or doing any other type of yard work. While I have no problem doing it, I’d rather continue to use my time to do other things such as thrifting.
I’ve said this once, and I will say it again. Travel is my anti-drug. With a house, I wouldn’t be able to travel as much. One of the benefits of renting is that I’m still able to travel without stressing about it. For me, life is about experiences. Travel is one of the best experiences out there. I’m not trying to give that up. In fact, Travel is the only thing I didn’t give up when I started this debt repayment. It’s a decision that I’m glad I did. It means that I have to work harder to make being debt-free a reality. Just this year alone, I had two vacations where I was gone for 8 days each time.
In the past, I used to think that homeownership was the easiest path to wealth. Now, I’m not sure. The picture above shows that 15% of millionaires got their wealth through Real Estate. Look at how 50% of millionaires generated their wealth. They did it by becoming Business Owners. That’s my plan. I’m essentially betting on myself. The way that things have been going the past two years, I like my odds.
As I get older, I’m sure my thoughts on renting may change. The advantages to renting may change. I will probably want to own once I get married. Also, as my income continues to grow, it will make buying easier. That is something that I will worry about a little later, though. For the record, I’m not anti-homeownership. I just know that it’s not for me at the moment.
Here are a few posts that I found interesting
My friend and his wife recently sold their home. They offer a great perspective.
Do you rent or do you own? What advantages to renting do you believe?
Jason Butler is the owner of My Money Chronicles, a website where he discusses personal finance, side hustles, travel, and more. Jason is from Atlanta, Georgia. He graduated from Savannah State University with his BA in Marketing. Jason has been featured in Forbes, Discover, and Investopedia.