February 2023
This philosophy has become an epidemic among those who are less financially literate. The exact opposite is true.
By virtually any measure, renting is cheaper than owning. Comparably, high-rise condo living is cheaper than single family housing. The fact that some are able to argue differently by offering incomplete information to those less informed does not change this reality.
Owning a home does offer advantages for those who can afford it. For the rest it means living an unaffordable lifestyle with future consequences.
For the vast majority, rent is less than mortgage payments. Saving this difference provides some combination of greater financial security and more disposable income. Renters don’t pay property tax or condo fees. They don’t pay to replace a roof, repair broken pipes or replace the furnace. Total annual savings is likely in the tens of thousands of dollars. Invested properly over decades this amount combined with government benefits may be sufficient to pay for retirement.
Renters don’t benefit from rising home prices nor do they risk loss of property value in a declining market. They have greater flexibility to relocate if the desire or opportunity arises.
High-rise condo living offers many benefits. Combining this with renting, while not for everyone, offers a way to dramatically reduce expenses and save for the future.
