Transcript
A (0:05)
Is this smarter to rent than to own right now? Well, it depends on what you're talking about. I mean, you'd never rent bed sheets, washcloths, or a mattress. Joke's on you. You ever stayed in a hotel? Cause that's exactly what you did, brah. Disgusting. That's disgusting. That's why I bring my own sheets. Life hack. Life hacking, man. But when it comes to whether you should rent or buy your home, the answer? Not so simple. Because for a lot of people, including plenty, renting is the smarter move. And today, I'll explain why. We'll debunk some of the biggest myths about renting and look at three major reasons why renting ain't so bad after all. So why are we digging into this today? Well, I've recently come across a finance trend pioneered by a group of people who call themselves forever renters. Basically, these folks are beginning to question whether home ownership is all it's cracked up to be. And I have to say, some of the reasons are more than valid. Let me show you what I mean. Roll the tape.
B (1:00)
Owning a house and buying a house and taking out a mortgage and taking on debt ain't all that it's cracked up to be. The Realtor association of the World has done a great job of saying renting is throwing away money. Because that's what the American dream was 50 years ago. Buy a house, two car, garage, picket fence, 2.2 kids. That's what the American dream is. The American dream today is economic freedom. Pick and choose wherever the hell you want to go, keep it moving, and stay flexible, and keep your overhead low. So what people forget is that. All right, you know that if you're going to buy a place, first thing you're going to look at is the mortgage payment, right? So typically, in the last six months, it's gone from 3% to 6%. That's double. I'm not a mathematician, but I'm pretty sure three to six is double. But the three things that people forget about when they go to buy a house, and for those of us that have bought a house, they get it. Now, those of us that have not is what I call the big three expenses. That's your taxes, your maintenance, and your insurance. Those are three things you do not have to pay for if you're renting.
A (1:57)
Okay, now you guys know I am pro home ownership, but this guy, he's onto something, despite the fact that he willingly got in front of a camera wearing a literal undershirt. And also, the Realtor association of the world 100%, not a thing. He is right though, that renting comes with a lot of pros and three main ones come to mind. Number one, he mentioned this flexibility. Renting means you can move whenever you want, or at least when your lease is up. No realtors, no open houses, no waiting six months while strangers critique your choice of honeycomb backsplash tile. Just pack up, sign a new lease, hit the road. So if your job changes, your life changes, or you just decide you're done living in Elkhorn, Wisconsin, you can pack up and bounce. Pro number two, less responsibility. Freezer, stop freezing. Not your problem. Dryer, stop drying. Again, not your problem. Swiper, no swiping. That's swiper's problem. Husband, stop wearing his ring in public. Probably I would look into that if I were you. Something's going on there. I always had red flags about Brad. Not Chad though. Chad. He's a real one, but for real. One of the major benefits of renting is that paying for repairs, maintenance and renovations falls under the landlord's responsibility often. Same goes for landscaping. So if popping Willys on the John Deere ain't your thing, renting could be for you. Pro number three, it's technically cheaper. The median home listing price in America right Now is about $440,000 on a 30 year mortgage. With 20% down at 6.75% interest rate, you can expect a monthly pay of close to 2,300 just for principal and interest. That's not including property taxes and homeowners insurance. By contrast, the typical rent for a two bedroom apartment in the US is just under 1,400 bucks a month. And yes, I know you're not building equity when you rent. We'll talk more about that later. But just thinking about the short term, renting is often way cheaper, especially if you have roommates. Which is why it's usually a much better option for the youth of America just getting started in their careers with a smaller income. And I practice what I preach here. I had roommates all the way up until I was married, so I've lived this out. So when you stack all three of those benefits together, more flexibility, less responsibility, and more affordability, renting seems like a pretty good option. So don't listen to people who say renting is throwing money away. Listen, the truth is, renting can be one of the smartest financial decisions you make right now. Especially if buying a home would stretch you too thin. For starters, it's not throwing money away because you're getting something in Return. These people aren't saying this about haircuts. Oh, it's a waste of money. You're just gonna have to pay it again next month. And you don't own anything. None of the hairs are yours. The barber owns them. Now, I own a very slick pompadour light with a hard part and a fade, thank you very much.