Why Renting makes sense if you want to get ahead.

Rental Property

Rental Property

I admit that I come from a generation that says you must own your own home. Apart from a short period of renting when we were first married Cam and I have always owned our own homes. Later we decided to plan for the future by buying investment properties. At the height of our investing we owned two home and income properties in two very good suburbs in Auckland. We lived in the main house of one of the properties.

Then as most of you know, ‘ Shit happened ‘ and we lost everything. We had no assets, no income and no home. If it wasn’t for the financial support from my family we would have been forced to live in a caravan park ( and no I am not exaggerating )

One of the hardest things to cope with was becoming a tenant. We had to re home our family dog which really upset our daughter. We no longer could do whatever we liked with the house we lived in.

However over time the benefits of being a tenant started to make themselves felt. I was not spending my weekends working in the garden. I was not spending money all the time doing things to the house. I no longer had to worry about rates or insurance. Our living costs were fixed ( no interest rates to worry about ) and it was so easy to budget to live within our means. When things went wrong and we needed to move it was easy. No waiting to sell and looking to buy. We could rent in walking distance of our children’s school easily and move again when they decided that they hated it. Additionally if our finances took a hit we could move to cheaper accommodation without having to go cap in hand to the Bank Manager and face a mortgagee sale.

Then after many many years ( this year ) we were faced with the remote possibility of once again being able to buy our own home and it hit us. We didn’t want to. It makes a lot more sense to buy an investment property. Times are still tough, but we are getting there.

For the price of a 3 bedroom here in Auckland you can buy a brand new home and income in Tauranga. The rates in Tauranga are cheaper than in Auckland and there is a rental shortage in Tauranga. Certain suburbs such as? Welcome Bay have good capital gain.

Yes, renting is definitely for me as it gives me freedom. The freedom to move whenever I need to. It also of course allows me to live in a much nicer home than I could afford to own.

Too many people hit retirement age and discover that though they own their own home it cannot feed them. It is an asset but it does not produce any passive income.

Plenty of people are forced to keep working because they are asset rich and cash poor.

Renting makes sense, it really does.( assuming that you put the money you would otherwise have put into your own home into an Investment property )