Renting vs Buying | When Renting Is The Better Option

When it comes to real estate investing. It's a good idea to know when you should rent vs buy. In this video we talk about when renting is better than buying. I've had a few people ask recently whether they should rent because we're in a seller's market or should they still buy.

A case for renting

I've also had people ask whether they should sell their house right now and I answer that in another video you can check out here: https://youtu.be/KtemqplLofs

There are really only two circumstances that I can think of where it makes more sense to rent than to buy. The first circumstance is when you're over 60 AND you have no heirs. At this point in your life, you want to just enjoy it. Well, I'm a believer that you should enjoy your life no matter what age you are, but definitely during this time. You don't want to have to deal with maintenance, and repairs, and you might decide you want to live somewhat of a nomad's life and travel. It's much easier to accomplish these things when you rent.

If you have no heirs, you have no one to inherit your property anyway once you pass away, so it doesn't make much sense to buy in this scenario.

The other scenario I'd say you might want to rent over buying is kind of the opposite of the first. It's if you're really young, 18-25 and you're trying to figure out where you want to be in this world. You may also want to travel before the responsibilities of kids; or just explore to see what city or town you'd like to live in. In this situation it also makes sense to rent because you can't know whether you like a place unless you live there for a few months to a year.

Once you've established that you really enjoy a place, then you can make the decision to buy real estate or property there and set some roots down.

So that's it! Yeah, you can sell your home in a seller's market and wait for a crash, but that's speculative investing. You have no idea when that's really going to happen and if you rent for $2,000 per month and 4 years go by, that's almost $100K just down the drain! Whereas if you bought something, even if you paid the same in mortgage payments, you'd be able to write off the interest and property taxes if eligible. As long as no major renovations need to occur, you're spending less money in the long-run.

Let me know if you can come up with any other ideas when it makes more sense to rent over buying.

Thanks for watching!
#rentvsbuying #realestateinvesting

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