What’s better now, renting a residential property or owning it?

You may have caught in the news lately that it’s better to rent now than own a property. But before you let that statement influence your decision, it’s a good idea to understand what it’s based on. In many cases, these reports assume facts that are not realistic for the average household.

For example, the methodology behind one of these reports says that renting is a more sensible financial option because it is possible to invest the money elsewhere. It assumes that renters will take the money they would have spent on the costs associated with buying a house or flat and put it into their investment portfolio.
It’s just that most people who rent simply don’t make these investments.
The fundamental problem with the rent and reinvest model is that many people simply rent an apartment and spend the difference. . .
And it is this condition that hinders their wealth creation, even to the point of destroying it.
That is why the difference between the net worth of the average homeowner and the average renter is so marked, even as much as a 40-fold difference.

So before you renew your rental agreement, think about the possibility of starting to build your wealth. If you’re unsure whether to continue renting or buy a house, work with a real estate and financing professional. Give us a call, we’d be pleased to help.