By Shannon Davis, Image Property
There is a common phrase in real estate, which is that “rent money is dead money”.
But this is not exactly true. Many people rent for long periods by choice. They do this because of its myriad benefits, while also concentrating on wealth creation at the same time. That might sound like an oxymoron, but it’s not. No one ever said you must own the house you live in. But it’s always a wise strategy to invest in something, whether its property or shares, to improve your financial future.
So, here are five benefits of renting.
- It’s giving you shelter
Shelter is an absolute need, right up there with oxygen! That’s why it’s such a good thing that housing is available for us in the form of renting until we have enough time or money to afford our own. Let’s face it, the alternative is living with your parents forever
- It’s saving you from capital loss
When there are disasters, and the world seems to be on the brink of economic collapse, you just keep paying the rent and not lose any money at all. When things break, you don’t even have to fix it.
- It provides flexibility
Most leases are for either six or 12 months, so you have the choice of staying or leaving. Young people especially often move around a lot, so it makes more sense to have the housing flexibility to do so. Also, mortgages run for up to 30 years and you need every bit of that time to pay it off.
- It lets you try before you buy
If you have to move for study or work, then renting allows you to dip your toe in the water to get a feel for the area. You truly don’t know an area until you have lived there for an extended period. By renting first, you can work out whether that suburb is somewhere you want to live for the long-term and even which streets are the ones that you admire and can afford, the most.
- It’s a lifestyle decision
Some people will rent forever but they will put their money elsewhere. Most probably already have property investment such as rentvestors. They may have all their money tied up in businesses or they might prefer the flexibility of renting for their entire lives. Regardless of their motivations for renting, they understand that they must create wealth along the way and regularly dedicate funds to achieve that.