Let's Talk Renting
If you know me, you know that there are few debates I love more than the rent vs. buy debate. Mostly because of the shock on people's faces when they find out I am a RENTER! (In fact, I just re-signed my lease for a pro-rated three years and am in full redecoration mode). And to some of my new readers, I know you might be thinking: A financial pop star? Throwing money to a landlord every month?
I know, I know, but I really am a firm believer that buying is not for everyone. Even Warren Buffett, my boyfriend, said…
Now with all of that being said, I HEAR all of you homeowners on your love for owning. So let's settle this debate…shall we?
Renting allows you FREEDOM. And when you're young… (like me) Freedom is EVERYTHING! I don't know where I will be in 3-5 years, so why would I buy property? What if I am in Nicaragua with a hot chef raising poodles? Anything could happen! Another reason to rent is that you don't have to deal with home owner stuff like leaky pipes & can just call your super to handle it. And, my favorite reason of all, is that the stock market has historically out-performed the real estate market. So if you're looking at real estate as an investment- think again. Renting & investing your “down payment money” instead is actually a wiser choice.
"Stocks have returned, on average, about 8% to 12% per year while real estate has generated returns of 2% to 4% per year," says Peter Earle, an economist at the American Institute for Economic Research.
Buying a home is great if you're looking to put down roots. It's cute to raise a family in a home you own, people love that shit. Plus — depending on where you buy (Austin?) you could make money when you sell your house eventually. Yep, when you buy property you are famously 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.
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!
FINAL PSA 🚨 If you're renting LIKE ME- don't be a dummy!! MAKE SURE YOU HAVE RENTER'S INSURANCE! It's one of those things that you don't know you need until you have it... trust your girl.
Happy renting (or buying!) Do you, boo!!!