Why Millionaires Rent
So I'm sure you've already heard the news but..I'm moving. TO DUMBO. No, I didn't buy a place. I will be renting! Again! I know, it's probably nonsensical to you that your financial guru is in fact signing another lease, but hear me out! Historically, there are way better places to invest your money than real estate in New York City, plus buying a home is just not for everyone.
There are a lot of pros and cons to real estate investment, and I want to walk you through them. Here are the the pros and cons of renting vs buying:
Renting vs. Buying
#1 Benefit of Renting: Yearly flexibility. You're not tied down to your place and are able to see where the wind takes you with your career, neighborhood, and overall life events. Also, you don't have to deal with home owner stuff & can just call your super to handle any issues that occur.
#1 Benefit of Buying: You're building equity in a property that you can resell (hopefully) at a later date for a profit. Your monthly payments towards your mortgage and any tweaks you make to the home are going towards an overall investment at the other end of the tunnel.
7 Questions to Ask Yourself Before Deciding to Rent or Buy
☑️ Do I have enough money for a down payment to buy a home?
☑️ Do I see myself in this living situation long term?
☑️ Do I see work changing in the next few years which could affect the location I need to live in?
☑️ Do I really want to be my own landlord? (or do I realistically need a building manager to come change a light bulb for me)
☑️ Do I need the space that a house provides or is a 1-bedroom apartment really all I need right now?
☑️ Do I see buying a house as a future rentable investment?
☑️ Am I taking care of other more important expenses like debt and an emergency fund before I'm thinking of making an investment in real estate?
At the end of the day, renting vs buying is 100% a personal financial decision that you can't compare to others in your life. For this time in my life, I find it best to invest in other ways until I have a more permanent situation that I feel it's appropriate to buy real estate. But for now, catch me roaming the streets of Brooklyn with Mystery enjoying this next chapter of my NYC rich girl life!
P.S. You don't need to invest in a home to grow your wealth!