“Forever renting is very much a movement. It’s a lifestyle.
The article emphasizes that renters should squirrel away as much as possible in an index fund or other investments. Millennials and Gen Z need an article like this to tell them that renting is a lifestyle choice, so it’s okay to do.
My sophisticated aunt and uncle never owned a home. I’d like to ask my uncle why. He had a steady job as a teacher and she was an office manager. My uncle liked building things and working on projects, but must have done that all at school. It wasn’t the money. They bought a vacation property in the Poconos and had plenty of investments. The apartment they’d rented for decades was in a good neighborhood, nicely furnished and rather mundane.
Home-ownership is a traditional strategy for long-term wealth building. For people who aren’t planning to buy, creating a strong financial plan without building home equity requires a different mind-set.
This article is about finance and building long-term wealth, and not so much about the lifestyle. Owning a home is expensive. Along with mortgage interest and property tax, upkeep and maintenance costs are significant and hard to anticipate. Owning a home means owning a lawnmower, buying lawn treatments, painting, cleaning out the gutters and snow removal. A roof is good for 20 years, a hot water heater is good for 12.
When I lived in a nice apartment with many amenities, I needed a project. I bought a school bus to convert into an RV. That was fun, and we did take a couple of trips, but it was sold for scrap when commodity prices were high.
Being a creative guy, my home is my canvas. The upstairs bathroom and stairway walls are the only parts of the house that haven’t been renovated. Nothing was wrong with the house when I bought it. The previous owner was so meticulous, I worried that maintenance standards might slip.
Several years after having the house, the previous owner came by to visit. A wall had been removed from the back room and the room renovated into a comfortable solarium. It went from this to that.
Frank’s only concern was that I’d painted the garage doors. Apparently he’d put in quite a bit of work to restore them to natural wood.
My home is my compound.
People who don’t enjoy project or are irritated by maintenance might do better with a condo.
Night life and dining out are important to some. An apartment can be closer to the fun. Others, want to entertain at home. Having people over for dinner parties or barbecues works better in a home.
One nephew needs projects and likes to entertain. He is skilled in both. There is no renovation task that he wouldn’t attempt and he can run a smoker. He has the smallest house in a nicer neighborhood. Renting for him would be a way to exist, but not really live.
Another nephew likes night life more that renovation, and just bought a promising house in a quiet neighborhood. It’s not clear what motivated him, but he isn’t impetuous. Perhaps he wants to expand his range of skills.
Owning a home isn’t for everyone. Life is about knowing who you are, who you want to be and making decisions in your own interest. People who aren’t nuts about having that much responsibility should probably just rent. This NYT gives them permission to choose that as a lifestyle.