Why Renting is NOT "Throwing money away"
If renting is throwing money away, then so is home ownership. In both cases, there are irrecoverable costs involved.
In reality, renting or owning are both forms of trading your money for some form of value (in this case, shelter). Just because the costs are more hidden with home ownership, doesn't mean they're not there.
For anyone with a reasonable amount of discipline and a short or uncertain time horizon, renting is an incredible option, both in terms of personal finance and the freedoms involved.
In the video, I ignore some large factors pertaining to home ownership and use an example of 25 years of living in the same home vs 25 years of renting. This assumes a person would never move, does not consider holding costs, and assumes average real estate appreciation. These are not small assumptions to make, but they're necessary for this topic.
Renting provides flexibility, liquidity, and diversification. Yes, you can get rich from home ownership, but you also can get rich by renting forever. And I'd argue the latter will have a more enjoyable and consistent experience.
Big shoutout to Ben Felix ( / @benfelixcsi )
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