First Person: How I Saved Money by Giving Up My Home Mortgage for Monthly Rent

I was always taught that a home is the best investment I would ever make. That notion may be true for some but there are an increasing amount of people like myself who reap the benefits of renting. I have owned a home in the past but I now rent and I love it.

What’s Your 30 Year Plan

Do you know what you’ll be doing 30 years from now? If so you are the exception. I have no idea what part of the world I will be living in 10 years from now. In order to reap the maximum benefits from owning a home you have to commit to living in or at least owning the property for the duration of the mortgage. I was one of the lucky few who were able to sell their home for a profit several years ago. I made a small profit but when I think of all the money that I put into the property, I would have been better off renting a home for those years.

Routine Maintenance

During the time I owned my house the cost of maintenance and home improvement were enormous. I spent about $4000 per year on things like lawn maintenance, plumbing, broken garbage disposals, home upgrades and replacing household appliances. That’s just the beginning. If you need a new air conditioning unit or a new roof it could drain your checking account very quickly. Renting is worry-free in most of these areas. The townhouse that am currently renting takes care of all lawn and building maintenance. If something breaks, the simple fix is to call the landlord. I currently save thousands of dollars a year in routine maintenance.

Bang For Your Buck

I pay about $1000 per moth for a four bedroom 1700 square foot townhouse that is located alongside the ninth hole of a beautiful golf course. The home I used to own was in a decent neighborhood but was only 1400 square feet. My old mortgage payment after property tax was just shy of $1500 per month. That cost does not include the constant maintenance costs that I incurred when I owned the home. In my current situation I am paying $6000 less on my fixed expenses and am saving about $4000 per year on property maintenance. My net cost is about $10,000 less for the year and my current home is larger and much nicer than the home I used to own. The only stress associated with renting my townhouse is where I will spend all the money that I’m saving.

Owning a home is a wonderful choice for some people. When my grandparents bought their home they knew for certain that they would live there for 30 years. They ended up living in the home for 50 years. In situations like theirs, building equity in a property and paying it off is a no-brainer. As the workforce becomes more geographically diverse and mobile, people like me who can afford a home will likely continue to reap the benefits of renting.


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