When Renting Makes More Sense Than Buying // 10 Reasons

Timecodes:

0:00 - Intro
0:08 - Lower Upfront Cost
1:26 - Lower On-Going Cost
2:51 - More Bang For Your Buck
4:43 - Frees Up Cash For Investment
5:32 - Fundrise Flagship Fund
7:32 - Minimal Maintenance
8:54 - Saves Time
9:49 - Lower Risk
10:53 - Flexibility
11:54 - FREE 1-Page PDF
12:11 - Access To Desirable Neighborhoods
13:05 - Access To Amenities

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DISCLAIMER: I am not a financial adviser. These videos are for educational and entertainment purposes only. I am merely sharing my personal opinion. Please seek professional help when needed.

[youdeservethis]

I got divorced a few years ago and am 54. Instead of buying a house, I am renting and putting my money in investments. I plan on moving to Thailand in a few years and don't want to be tied down to a house.

[wgarnsey]

I will never own my residence again. I wish I had done this years ago. We sold our 4 br/4 ba home in Silicon Valley and moved into a 1 br/1 ba furnished apartment. I've never been happier. Our house was a pre-WWII Craftsman style home in a quiet tree lined neighborhood. The neighbors thought we were crazy. What was crazy was the total cost of ownership. Forget the mortgage, the utilities (especially water in CA), constant repairs, time spent cleaning, yard service and especially filling the space with stuff we don't use. I think I have easily freed up 3 hours a day plus all day Saturday. My time is now spent with my wife, taking day trips, building a side business and going for long walks.

Also, now that I have turned 60. I don't want to sink money and time into a home that I cannot commit ten years to. We are in San Francisco now, but want to spend time in Europe and SE Asia. We could never do that when we owned our home. Yes our property did appreciate, but that extra money would have appreciated more if we had just put it into a stock index fund.

[jeffro]

Everyone always talks about how renting is so amazing because everything is the owner's responsibility. In my experience that has been a HUGE problem! The A/C went out in my apartment in 100+ degree summertime and it took a week to fix! I then rented a home after that and I was told the owner wanted to move back in just 10 months later and to vacate the day the lease ended. Very inconvenient time of life for me too. Then finally the last place I rented, the owner called me and told me he was selling the place and I needed to move again. But instead of moving I bought it from him! I've never been happier owning and I don't even plan on renting again. Yeah if the A/C breaks it's my responsibility but I have 24/7 repair coverage so it's my decision on when it's fixed. Now I'm happy, conformable, and living life my way instead of being at the mercy of landlords. Not everything in life is financial.

[dappster]

Ive owned and cashed out on 3 homes. I now rent. If you are a type A personality you may find renting liberating. I have so much more mental space now that I am not responsible for my dwelling.

[robyn]

Financial planning is like navigation. If you know where you are and where you want to go, navigation isn't such a great problem. It's when you don't know the two points that it's difficult

[CAZUAL]

Tae, this is one of the clearest and most indepth videos I have ever seen on this subject! THANKS!!

[TheDarkPlace-pt]

Renting is better in terms of not having to deal with a mortgage, taxes, or maintenance, and you have more flexibility to move around, especially if you’re not sure about your future or if something happens with your job. You won’t feel the stress of being a homeowner.

[mpjsac]

Bought a condo in 2023 in CA after years of renting. The difference from our total out of pocket for the condo versus renting a similar unit is $400, but our condo has a lot more space and features plus it’s in a great neighborhood. Not sure how we lucked out in this terrible market but it feels like the best decision for our growing family. I would have wanted a single family but the condo is what we can afford now and we are content here.

[anacap]

The #1 reason I simply can't understand why people push home ownership is the idea that "You are throwing money away by renting." Last time I checked paying rent puts a roof over your head. Or perhaps they'd rather hold onto their rent money and live on the streets.

[mihoda]

I did a full tax statement for owning v renting on a direct comp (same model home, same block). Ownership costs 2.5-3x more than renting for me. For reference: East Bay in the Bay Area. Berkeley/Albany.

[g.burney]

Always enjoy this young man's content for my wife and I it's a different school of thought. Our home is paid for we have zero debt. I guess renting is ok for others but if you are paying close to 3 grand a month for rent your basically helping the LLC owners pay off their mortgage for their loan. Kinda old school but having no debt gives you peace of mind

[davidkay]

The reason I rent is because I am disabled. I can’t fix broken water heaters or roof problems. I don’t cut grass or shovel the driveway.

[keralitopolitano]

This is very helpful! Love your video, Charlene! Thank you for the tip

[JDM]

Another consideration at least where I'm living is I can rent a place much closer to my work than if I purchased (within my price range) the closest place I can get is 30min drive each way so I cycle in everyday and that's about $400-500 saved each month right there also in favor of renting for my situation.

[carlosgarcia]

I'm 63 and been renting for the past 9 years, at the same place. I am very fortunate to have a landlord that has great morals, and principles, and will respond quickly if there's a problem. No first and last, no deposits. Never been late on a payment. Love it.

[SOURCEwt]

I rent in NJ 20 mins outside Manhattan. My rent has been $985 for 13 years. It's a 2 bedroom apartment. This year it finally went up, but I fall under rent control so it only went up 3%. It's now $1014 if I stay here 5 more years and they max my increase each year of 5%. It won't even break $1300. I'm raising 2 kids with the wife and we have been banking and investing like crazy.

[albertogonzalez]

Been renting for 10 years bc I can’t afford a home and it sucks. Neighbors and their dogs stomp above me, amenities are always broken, garage is always being broken into. And this is at a “luxury” apartment

[bobodapopper]

What I really want to know is what hair product you use? 😂 Always great content, thanks Tae 🙏

[ZorakWars]

In my city you can rent a 3-bedroom home for about $3400/mo. The price of buying that home is 20% down on 1.2million ($240k + closing costs) and a 7% interest rate mortage that is $960k which is $7, 798/mo with taxes and fees (no maintenance) included at a 6.7% interest rate. The math depends entirely on your local market.

Imagine all that extra $240k + $4, 398/mo going to a broadly diversified index fund instead of an "'asset" that appreciates at 1% real per year historically (with 1% real maintenance per year). This is why the millionaire renters are becoming more and more common in HCOL areas.

[Daniel-qxbg]

What I have found is that people that have a strong opinion, one way or the other, will never change how they think, no matter how great your arguments are. They are just looking for confirmation on their choice.