Education is Freedom
Paulo Friere
The Wealthy Renter: How to Choose Housing That Will Make You Rich
by Alex Avery
“The secret to renting is in what is done with the difference between what a homeowner spends on housing and what a renter spends.”
We have all been marketed the “American Dream” of home ownership in one alluring form or another. Real estate agents, mortgage brokers, family, friends and the government promote home ownership as a safe, attractive and sure-fire path to personal wealth, with the accompanying status synonymous with success. Pursuing this dream, for the vast majority of us, necessarily entails taking out substantial loans with banks. The risks and consequences of such a financial commitment are barely explained to us, and critical thinking on this decision is quickly washed away with the phrase, “why rent when you can buy?”
As with many forks in the road you’ll approach along life’s journey, the right choice for you depends on your individual goals and circumstances. Alex Avery, a Canadian real estate analyst and home owner himself, lays out the case that renting can be the more sound investment strategy and life choice, particularly if savings can be invested in other avenues. In reality and unbeknownst to many, the term ‘renting’ is also applicable to the more common road when considering that funny little thing called ‘interest’.
Realise you have a choice when it comes to the place you call home, and approach that choice from a position of knowledge and strength.