I am a happy renter. I like to send an email or a text message with “something broke, please fix it” to someone and then not worry about it anymore.
I’m also not exactly in a place to buy a house. I have debts to pay off, then there’s the problem of coming up with $40,000 for a down payment.
Coming up with that kind of money seems so improbable. At least in the next couple years, anyway.
I just read this article, that states “entrepreneurs should not buy houses” and I think I agree. For now, anyway.
One of my favorite tools is the New York Times Rent vs Buy interactive graphic. Click here for the fun. My rent is $825 per month, and I wouldn’t buy unless I could buy something around $225,000. According to the graphic, I should not buy. Even playing around with it and increasing my rent to $1200/month and then the buying price of $400,000, I should never buy. Or at least not in the next 30 years.
My five reasons for renting:
- Renting is not throwing money away. In fact, continuing to rent could help decrease my monthly spending.
- Renting helps keep me living a simple, frugal life. I mean, I wouldn’t buy a one-bedroom anything, but I’m happy to rent one. In fact, I like living in small spaces. It’s cozy.
- Renting makes me flexible. Soon, I’ll be debt free, so without anything tying me to any particular place, I can be as flexible as I want. Move to ________ for a while? Why not?
- Renting means I can live in as many neighborhoods as I want. Even if I never leave Portland, I’d have the opportunity to see what it’s like to live in any neighborhood.
- Renting keeps the clutter down. Renting is, by nature, temporary. Moving helps decrease clutter, since I never ever want to move things I don’t use.
Maybe I am an entrepreneur. I certainly know that I could use money to get the caramels up and running, and definitely not spend the amount of a down payment!
I know that there are things that may change my mind. I’m single, and dating someone who lives in another town. If I could get him to move here (and by “get him” I mean “find him a job here”) then I would love to buy a house with him. Or rent one.
If I have children, maybe I’ll want to buy a house. But it might just be better to rent when there are kids spilling things all over the place!
Home owners, if you had it to do again, would you still buy?