For some people, having to pay rent can quickly eat up their disposable income and keep them from meeting their long-term financial goals. But for others, this price may be worth it in exchange for more freedom, privacy, and healthier relationships with family.
And for those who don’t want to compromise on space and location, paying rent is worth the money you get in transportation savings, convenience, and time.
Of course, if your finances permit, buying is usually a much better choice than renting. This is because it is aimed at accumulating assets.
Additionally, as an asset owner, you have the bargaining power to rent the property for additional income or sell it to free up future capital. During periods of sustained inflation, having an asset in your name, especially an asset that keeps up with consumer inflation or rises faster, is more profitable in the long run.
Leases are at the discretion of the landlord. But if you are the owner instead, you can do whatever you want with your property.
Dawn Cher, also known as SG Budget Babe, runs a popular personal finance blog. have a real estate license.
