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The Rent vs. Buy Debate: Why Renting Forever Is Financial Sabotage

By Aman from RI Journey

Welcome to my series where I call out some of the worst financial advice sweeping the internet. Today, we’re diving into the “rent for life” mantra that’s gaining traction online. You’ve probably heard online gurus, bloggers, vloggers, and YouTubers claim with a straight face that renting is better than buying. They’re the rent-forever gurus, and they mask their advice with catchy slogans: “Buying a home doesn’t make sense right now,” “Rent and invest the difference,” or “Renting gives you more freedom.” These phrases sound smart, modern, and liberating—but they’re part of one of the biggest financial lies out there. Renting forever isn’t just bad advice; it’s financial sabotage. In this article, I’ll break down why the rent vs. buy debate isn’t as simple as it seems, how strategic home buying builds wealth, and how you can get into the homeownership game, even in a tough market.

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The Rent Forever Myth: Why It Sounds Good but Fails

On the surface, the arguments for renting sound compelling. Renting offers flexibility—you’re not tied down. It’s often cheaper than a mortgage in big cities, especially in year one. And it’s less responsibility—no maintenance costs or property taxes. But these arguments are rooted in short-term thinking. They compare rent to mortgage payments without considering future equity and flexibility while ignoring the instability of being a tenant and costs without accounting for long-term wealth-building potential. The rent-forever gurus are thinking like consumers, not investors.

Here’s the reality: renting keeps you chasing, while owning lets you lead. Let’s look at a real-world example in New York City, one of the most expensive places to live. Suppose your rent is $3,000 a month, while owning the apartment next door costs $6,000 a month. At first glance, renting seems like a steal. But rent increases every year—often by 5-10%. That $3,000 could climb to $4,000 or more in a decade. Meanwhile, a fixed-rate mortgage stays the same, and after 15, 20, or 30 years, the owner is mortgage-free. The renter? Still paying rent, likely far more than the original mortgage payment. Even in rent-controlled situations, rent creeps up. A mortgage, on the other hand, is locked in and eventually disappears. The owner builds equity; the renter builds nothing.

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Our Journey: From Lease Option to Lakehouse

My wife and I didn’t start with a luxury estate. Our real estate journey began with a lease option—a contract where we secured the right to buy a property and later sold that contract for a profit. We used that money to buy our first modest condo in San Diego. From there, we bought a house, then two more condos, followed by a countryside home in Portugal, a villa, a tiny home, a beach house, and now a lakehouse. Each property was a stepping stone. We bought smart, added value, and sold or rented out properties and reinvested the profits. Our equity grew while our cost of living stayed manageable.

This wouldn’t have been possible if we’d rented forever. Renting would have kept us stuck, with nothing to show for decades of payments. Instead, we thought like investors, not consumers. We didn’t chase luxury; we used each property to ladder up to the next. The rent-forever gurus don’t tell you this, but owning strategically—not emotionally—can transform your financial future.

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The Numbers Don’t Lie: Homeownership Builds Wealth

The Federal Reserve provides a stark reality check: the median net worth of homeowners is over 40 times higher than that of renters. Not 40%—40 times. Why? Because real estate is a wealth-building machine. A home is an appreciating asset. Over time, its value grows, and your mortgage payments build equity—wealth you can leverage for future investments. Renters, meanwhile, are building their landlord’s equity, not their own.

The rent-forever Gurus argue that you can “rent and invest the difference” in the stock market. But let’s be honest: most people don’t invest the difference. They spend it. Even if you do invest, the gap between renters and owners keeps growing because real estate combines forced savings (your mortgage payments) with appreciation. Plus, owning a home gives you stability—your costs won’t spike unexpectedly, and you’re not at the mercy of a landlord.

How to Buy Smart, Even in a Tough Market

I’m not saying you should buy a mansion with an ocean view tomorrow. The key is to buy like an investor. Here are some strategies to get started, even in high-cost cities like New York, San Francisco, or Lisbon:

1. Buy a Fixer-Upper: Purchase a property that needs work, add value, and increase its worth.

2. House Hacking: Rent out a room or a separate unit to offset your mortgage costs.

3. Buy Below Market: Look for distressed properties or motivated sellers to get a deal.

4. Relocate: Consider moving to a more affordable area where homeownership is within reach.

You don’t need to buy your forever home right away. Start small, like we did with our San Diego condo. That first purchase builds equity, which you can use to ladder up to bigger properties. The rent forever gurus never talk about this, but getting into the real estate game—however modestly—sets you up for long-term wealth.

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The Freedom of Ownership

The rent forever crowd claims renting gives you freedom. But real freedom is owning your home outright—no landlord, no rent hikes, no uncertainty. It’s knowing your home is yours, no matter what. Renting might let you move every 12 months, but that’s not freedom—it’s instability. True freedom is choosing whether to stay or go, not being forced to move because your landlord raised the rent or sold the property.

Final Thoughts: Don’t Fall for the Rent Forever Trap

If you’ve been told renting is better than buying, question it. Renting forever isn’t a plan; it’s a gamble. Your goal should be to own a home one day, even if it feels out of reach right now. Homeownership, combined with smart investing, is the foundation of financial security and independence. Don’t let the rent-forever gurus keep you stuck. Start planning, start small, and think like an investor. Your future self will thank you.

If you found this article helpful, let me know what other financial myths you want me to debunk in this series. Join the journey, and let’s build wealth together.

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