Call me stupid, call me dumb, call me mad .. but I like to rent a home rather than own one.
These days renting a home is a popular option for many. It has distinct advantages over the buy -> mortgage -> own a home scenario.
… I’m waiting for the question.. you know, the one that goes.. “But isn’t rent dead money?” It may be considered dead money, but then so is paying interest on a home loan. With the average home loan, only a small portion of the monthly payment is actually paying off the home. The bulk of a typical monthly mortgage payment is INTEREST. AKA “Dead Money”.
Another argument used to support home ownership is all about building wealth or capital. The core principal of this argument is that house prices should rise continually. So by owning a home you also take possession of an asset that is increasing in value. Every dollar over the sale price is clear profit .. sweat!
As long as the price of housing keeps rising that is. Can you ever think of a time when house prices dropped? Umm.. wait .. the GFC.. that’s right house prices not only dropped they had the proverbial sh*t kicked out of them. Let’s face it only a small hand full of people were able to predict the impending financial hurricane. Which means the bulk of our leading financial brains had no idea what was going on. So although there is the potential for wealth or capital creation through home ownership, it’s a gamble. Prices may go up, but then again they might not.
I have enough trouble splitting the bill let alone grappling with my debt to equity level or my total amortised costs. Phew that’s too much for me, I’ll just rent, it’s easier. No maintenance, insurance or property taxes too pay. The freedom to move when I want and to where I want and the ability to rent a home in a location I could never afford to own.
You don’t have to own a home to make a home. To me my home is where I am, where I sleep and where all my things are. I can still get most of the joy a home has to offer, I can decorate and garden. If my needs change rather than deal with renovating I can just move to a more suitable place. All much easier than having to sell and then buy again..
The major drawback to home rental is the fact that renovations or improvements are probably not possible. There is no escaping this fact but there are ways to get around it. For example, I have always wanted to get a hot tub. The idea of soaking myself in dreamy hot bubbling water is very attractive. But I rent so that idea is out. The landlord is never going to let me install a hot tub. I could just accept this situation or I could think of alternatives. In this situation the alternative I came up with was a portable hot tub. I bought my hot tub from this website www.portablehottubfinder.com . This type of hot tub is perfect for renters. It can be quite easily setup and requires no handymen or special skills, because they are portable they can be packed away when not in use. As long as you have some space then almost every rental home could be improved with the addition of a cheap hot tub.
If you find another more personal drawback to renting then think about it. In what ways can I achieve the desired outcome without upsetting the landlord.
Renting offers much more freedom and flexibility than owning a home. This blog is a celebration of that freedom. Within it’s pages are a collection of ideas and inspirations. An eclectic collection to stimulate the mind and to help discover the joys of a renting lifestyle.