16/04/2025
Renting isn’t dead money if it gives you the flexibility to invest smartly elsewhere. Discuss.
What’s dead money are the interest payments on the house that you live in.
Instead, you can use the deposit you were going to use to buy the house to invest in properties
Then the money that you make from the property investments you can then use to rent
And you’ll still have way more LEFT OVER
However if you just put down all your savings on buying a house to live in, that won’t be an asset
Because an asset by definition is something that PUTS money into your pocket every single month
Then the house that you live in if you own it does not.
E.g.if you put down £50,000 to buy a house,
That house may SOAR in value
But the craziest part is that you are no better off than everyone else buying their houses which also go up
HOWEVER
If you pop that money into two other cheaper houses you can rent out, then you’re in a much stronger position than other people
Strategies you can invest in while renting the house you live in include:
Rent to rent 🏘️ giving you quick cashflow 💰
Buying houses to then refurbish 🏚️🏠 - you can either flip these to make quick cash OR you can refinance it where you keep the asset but your equity remains inside the property
The point is, renting isn’t dead money because your capital is earning and not sitting still 👀💃🕺💸
That’s why homeownership is a lifestyle and emotional choice and you must think with your head first
Absolutely nothing wrong with buying
But unless you can tell yourself you have assets that fund your lifestyle, it’s going to be much better financially to invest the bulk of your funds elsewhere by LEVERAGING renting to do so
🤝