UNITED STATES—Is it smarter to buy or is it smarter to rent? That is a question people ask themselves time and time again when it comes to property or housing. I’ve made the argument in the past and I will continue to argue it the rest of my life. Owning property is the greatest asset a person could have because it is such a tradable commodity.
I know plenty of people who are actually renting apartments, and I totally understand that. There are some parts of the country where the notion of purchasing a home seems nearly impossible. Why? Well it’s expensive to live in New York or Los Angeles, and purchasing a property for millions is just not an option for most Americans. So to ensure they have a place to lay their head, the only option is to rent. I think I get more frustrated not only with the thought that when you rent its money that goes to someone else’s pocket, but the fact that you pay so much sometimes for so little.
Yes, when you rent, and I have done so on more than one occasion, you tend to not have to pay a water bill or certain utilities as those are covered by the landlord so that is a plus. In my lifetime, I have rented TWICE, during college and a few years after college. Now, I’m in the mix of saving money to purchase my own home. I know so many people who don’t even consider the thought of buying, renting is there go to. For those who think it’s NOT possible, eliminate that notion from your head. It is possible, it may not be easy, but the thought of buying your first home can indeed happen.
For most people that rent, they don’t have to worry about certain utilities, you don’t have to worry about house insurance, you don’t have to worry about property taxes, so there are indeed some benefits in the long run. That is especially true, if you are hoping to save money by renting in hopes to buy. My apartment in college was one of the best deals ever. I mean doing the summer, rent was only $300 per month, and then I had to pay for electricity and cable. Cable was optional, so I didn’t have to have it, but what are you gonna do? I think things were even sweeter about a year ago when I had my apartment where I was paying $650 a month, and ALL of my utilities gas, light, water, internet and cable were included in my bill.
Yeah, when I mentioned that to several people, they noted I should never move or get out of my apartment lease. I mean the apartment was decent, but at the same time I wanted more and something slightly larger. The idea of a small confined space is something I grapple with. I want to be able to move around and jump rooms if I please America.
Now, we’ve spend so much time talking about renting, we need to discuss the importance of buying. Now, I’m someone that believes owning real estate is a great thing. However, I’m not the biggest advocate of renting property out. Why? You have to deal with tenants, and tenants can be unpredictable; you never know if you’ll have the perfect tenant or the one from hell. I’ve heard SO MANY horror stories from people who had tenants who destroyed the property or invited vermin and bugs that are difficult to get rid of. On top of that, in most regions you can’t just get rid of tenants without at least a 30-60 day notice. Yeah, all it takes is 1-day to destroy a person’s property and most could care less about it; they don’t own the home.
That may be one of the negatives when it comes to owning, but at the same time America, look at the pros. You have property and it’s something you can fix up and actually sell. I’m a firm believer of flipping properties and selling them to make a buck. You don’t have to worry about tenants, you get the opportunity to help someone who is looking to buy and you put yourself in a situation where you can continue to add money to the money that you already have. So many people might suspect that buying is not an option, but it takes time, a vast majority of Americans don’t come into wealth, so you have to build up on it. If you can buy, you should absolutely consider it as an option people.