3 Reasons I’m Fine With Renting Forever

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I’ve been a renter for my entire adult life. Find out why I don’t feel pressured to buy a home and how I’ve still been able to build financial success. [[{“value”:”

When you live in the United States, you eventually hear about how renting a home is a terrible financial decision. You’ve probably already been subject to the typical cliches. You’re throwing money away by renting. You’re paying your landlord’s mortgage. Real estate is the best path to building wealth and long-term financial success.

There’s nothing wrong with renting or owning a home, but you shouldn’t buy one because of pressure from other people. I may buy a home one day, but I’m also fine with the idea of renting forever. Even though lots of people criticize renting, there are a few reasons I personally love it.

1. It allows me to invest more

Buying a home is more expensive than renting in most major cities. Research by Visual Capitalist found that the average cost of buying a home is $2,697 per month, while the average cost of renting is $1,845 per month. That’s $852 more per month to buy.

This has been true for my personal experience, too. I’ve lived in the United States and abroad, and it’s consistently much more expensive to buy than to rent.

By renting, I’ve been able to invest much more money. I’m spending less on housing each month, and I also haven’t needed to set aside money for a large down payment. The key is using the money you save by renting to invest.

To show what kind of impact this can make, imagine that instead of using $30,000 for a down payment on a home, you invest it. You’re also able to invest an extra $852 per month. After 30 years invested at an 8% annual return (in line with the stock market’s average), you’d have $1.46 million.

2. I don’t need to handle repairs and maintenance

As a renter, I’m responsible for keeping my place clean and in good condition, but that’s it. If the dishwasher or the HVAC system stops working, I just call my landlord and let them handle it.

That’s a big deal for me. I’m a writer. Home repairs are not my specialty. I don’t want to spend my free time watching YouTube videos on how to fix a sink or calling contractors and scheduling repairs. Not only do I save time on repairs and maintenance by renting, I also save money, since I’m not the one who has to pay for them.

3. It’s much more flexible

If you’re sure you want to spend at least 10 years in one place, buying a house could be a good decision. You’ll have stability and the freedom to do what you want with your home. But I haven’t been sure about staying in one place. I love being able to move to a new city without the complications of selling a home.

That’s largely because of my personality. I like seeing new places, and I value flexibility more than stability. But it’s also because of my experiences moving around and staying in lots of different homes over the years.

I’ve learned that what initially seems like a dream home often has issues you only discover after living there. In apartment buildings, I’ve had to deal with noisy neighbors who start doing construction at 8 a.m. on a Saturday. I’ve also stayed in new, supposedly high-end homes, where it later became clear that the construction company cut corners and used cheap materials. In situations like these, I’ve always been thankful that I was only renting.

It’s your decision

None of this is to say that renting a home is better than buying one. Each option has its pros and cons. It’s more about which option fits you, your personality, and your financial situation.

But there’s much more pressure to buy than there is to rent. No one tells homeowners that they’re throwing money away. Don’t let the pressure convince you to make a decision you regret.

Buying isn’t necessarily a better financial decision, and it’s entirely possible to be successful as a renter. I’ve rented my entire adult life, and my net worth is above average. If you manage your money well, including saving and investing regularly, you’ll be successful whether you rent or own your home.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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