Buy or Rent Your Nest

Welcome, dear readers, to the latest financial hot take. While strolling around a neighborhood, have you ever asked yourself: should I buy or rent? 

Buying a home is still painted as the ultimate American dream, but it may not be the best option for everyone. Let’s take a closer look at the two sides of this coin.

Before diving in, at the Budget Pigeon, we acknowledge a ton of institutional problems with who gets to pursue homeownership, and the effect it has had on creating conditions destructive to us all.

Yaaahs to Owning

Ok, let’s start with some unexpected news: even Suze Orman, our parents financial TV guru personality and GLBTQ icon is easing off her advice to always always always invest in property.

But if you are single, or partnered with no kids, buying a home provides a sense of stability and long-term investment. And if you do have kids, it is still the best way to force yourself to build generational wealth – so money for your kids when you leave this earth.

The power of homeownership is why governments and banks have been so eager to control who gets to have a loan – if you were able to navigate this system and have bought property, know and acknowledge that it is a dream of many generations over hundreds of years…

House is Money Made Flesh

A house is a physical manifestation of “value” – a thing you can touch, see every day and live in. This is a lot more real than the abstract way we tend to live. From digits on your bank account to the digits you copy and paste in various software to fill that account.

A moment of capitalistic national pride: living in the United States provides you an almost 100% guarantee that your property is yours as long as you pay for it. This is not something you get with stock market or crypto investments. A house might go down in value, but it will never be ‘worthless’ – and can act as a mental grounding to build on top of. I’d argue, a better investment than an NFT any day.

Renting Queen

On the other hand, renting allows for more flexibility and less commitment. You don’t have to worry about repairs or maintenance costs, and you can easily move to a different location on a dime. This is the option for those that want to soar free, and are not concerned with building a stable place for a family.

If you’re young at heart, or your zodiac sign is full of fire, a house might seem like a rock tied to your leg: something to keep you from moving on a moments notice for an opportunity of a lifetime. 

Maybe Both Options Are Bad?

Buying is bad because the upfront costs of buying a home can be impossible – but dear reader – be wary of alarmist voices. Down payments, closing costs, and ongoing maintenance expenses can indeed quickly add up. However, owning a home forces you to build equity over time. Life is risk: precious things are precious because they are frail, and property values can throw some unexpected twists and turns. So be wary of treating your home purely as an investment. 

Renting is bad because it means that you’re essentially paying for someone else’s dream, with no opportunity for long-term returns. If your personality values stability over freedom, this can create a feeling of hopelessness as you look at your account draining each month just for your right to exist upon this earth. But, if you want to soar, explore different cities or countries, do it while you can!

The Answer is In You

So, what’s the verdict? The answer, as with many things in life, depends on your individual circumstances and priorities.

Regardless of your decision, it’s important to stay financially responsible. Don’t overspend on a home that’s out of your budget, and make sure to factor in all costs associated with owning or renting. Check out this Google mortgage calculator to start thinking about whether it’s something you might afford.

Remember, the money you live in is a reflection of your financial energy. Choose wisely, and always prioritize your mental and financial health.

Until next time, dear readers, keep your finances in check and your dreams within reach with the Budget Pigeon. Check out your money horoscope and sign up for more updates in your inbox.