“Renting is throwing away money” is a common saying, right? Is this really true? Every time you make a rent payment, doesthis mean throwing away money? Well, this is an important question asked by many people.
In today’s article, we will answer this question and give you all the necessary information that will help you make an informed decision on the topic.
Know what you pay for
You must understand what you are paying for. You pay rent to have a place for sleep and have a roof over your head. Since you do not own the unit, it does not means that you are throwing your money away.
You must know that you pay for tranquility and peace of mind as you fully understand you have somewhere to eat, sleep, bathe, and store your personal belongings. Unluckily, living is not cheap in the U.S. and there is a high cost to this. However, by the time, you will get used to it.
You are more Flexible
By renting, you are not throwing your money away. With rent, you are strategically and financially more flexible than with house ownership. You have to put your house on the market in case you want to switch homes. Likewise, you have to search for a new home. This is a lengthy procedure and takes a long time. Also, it cost you more money between the real-estate and lawyer fees. You, on the other hand, are more flexible as a renter. You don’t need to wait for longer while switching locations. However, this also depends on the lease contract.
Future work situation
If you are a young person, you have a lot of opportunities to take benefit of. You have to explore the world as you can’t limit yourself to the local town. Some people think it is not a good idea to choose a life destination at a young age.
However, we think that most young people, today, want to work in a foreign country or seek employment opportunities across the U.S, Canada, and Europe. Settling down in one place can hinder your objective, especially in terms of exploring new employment opportunities.
Your financial situation emphasizes how much do you make? More interestingly, it focuses more on how much do you save. This is true as we all the significance of saving and how it helps us spend our lives. You must get your finances on track before transitioning from renting to house ownership. To optimize your finances, you must do the following.
Increase your income: Do you think you are earning enough money? Are you making enough effort to earn the money you deserve? Are you looking for a dream job? Do you want to start your business? If yes, don’t think about owning a home now. Renting, at this stage, is a viable option.
Save more money: You can save money through renting. When you earn more and know how to pay down the debt, you start learning how to save money. Saving more money allows you to build up slowly for a future mortgage down-payment.