In a society that’s obsessed with real estate in general and home ownership in particular you wonder if Alex Avery’s The Wealthy Renter makes sense.
“Renting is the unsung hero of the housing world, renting is beautiful in its simplicity. Pay a fixed amount of money for the right to occupy a space for a fixed amount of time. It’s that simple.”
“Home ownership is aggressively marketed to make people want to buy homes in the same way car companies run commercials featuring their cars racing through hairpin turns with their engines roaring. “
“Government is coach, referee, cheerleader, and fan in the game of housing.”
- Renting can be a casual relationship – one that you can change up with relative ease.
- One fixed cost
- Renters can move without a penalty (or almost)
- Improve your chances of finding a better job because you are more flexible about where you can work
- Not owning means you don’t own the responsibility and the risk
“Implicit rent is an opportunity cost, so the cost depends on what alternative investment opportunities are available.”
Alex Avery is an accomplished professional at a major wholesale bank who has parsed through the arguments, crunched the numbers and has given us food for thought. The numbers add up, especially if people have the discipline to save concurrently while paying rent. But buying a house, much like any purchase, is about emotion, and as such the arguments will take time to take hold. In Canada, we may not embrace renting in the same manner that they do in say Germany, but with the price of real estate assets continuing to far outstrip income growth The Wealthy Renter is a book whose arguments need to be taken seriously.