Why Rich People Rent

Written By:
Haley Sacks
(aka Mrs. Dow Jones)
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If you've been rocking with me financially for a while, you know that I LOVE the rent vs. buy debate. I am famously a MILLIONAIRE who RENTS! And some of my new readers 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

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But enough about me, what’s best for you? Let’s weigh the pros & cons and scroll to the bottom to use my new rent vs. buy calculator:

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Renting allows you FREEDOM. And when you're young… like me (is 32 young? Don't answer that…) Freedom is EVERYTHING! I don't know where I will be in 3-5 years, so I wouldn't 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 homeowner 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 from a financial perspective.

"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.

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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 mortgage payments and renovations are going towards an overall investment at the other end of the tunnel.

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Need to figure out if renting or buying is right for you right now?

Use my rent-to-buy ratio calculator!


Need to figure out what rent you can actually afford?

Use my rent affordability calculator!