Hitting Your Financial Goals While Renting

Owning a home is not a requirement to obtain financial security. This is a discussion of when it can be okay for investors to rent forever instead of straining their budgets to purchase a home. In this article, I will explore how to reach your personal financial goals while renting.

House Poor

The term house poor in this context refers to your housing costs taking up almost your entire budget, not leaving any room for discretionary spending or savings. A 2021 Bankrate study found that 64% of millennials have regrets about their home purchases and one of the biggest regrets was ongoing costs. Not only are mortgage interest rates much higher now than in recent history, but homeowners are also responsible for a lot of costs that renters don’t need to worry about. You must pay property taxes, get homeowner’s insurance, and plan for unexpected maintenance. Renters, for the most part, do not have significant surprise costs above and beyond rent. If the toilet breaks, renters call the landlord. If there’s mold, renters call the landlord. Homeowners do not have the luxury of passing maintenance costs on to someone else.