Why I Rent and Not and Not Own

I just sold my house this month. I am currently renting a house. I have rented before. Now however I believe I will continue to rent for the foreseeable future. This is my way of waiting and being patient for the right time to invest my money. It is my way of allocating my money for what I perceive are better investment opportunities. I have sold a house previous to my latest one. I bought a town home for $91,000 in the state California in the 1999. I sold that property for $215,000 after 5 years. That was a good and profitable experience. That rate of profit is rare nowadays. With the current condition of the housing market those conditions I believe are not coming back anytime soon.

I know that one of the biggest current benefits of owning a house are the tax deductions. This benefit has become less advantageous to me because of how this economy has affected my income. I am now fully self employed. Our family’s combined income is also lesser. There is no need to shelter the income that isn’t there anymore. Of course since we pay less money to rent a house we now have more disposable income. Having cash on hand is way better than waiting for a refund. I need not wait for equity to build up. In this economy values of homes have been going down and equity has become a rarity.

Secondly I am not concerned about the maintenance of our property. I do not need to maintain the yard or worry about the plumbing. My days off are free and my weekends are available to spend time with my family. It seemed that when we owned a house there always was a project to be finished. Now we are free of that.

Thirdly we moved closer to school and work. We save time and love the convenience. We also have the advantage of flexibility. If our situation changes we can move again.

I now see my home as exactly that. It is a place to live in. It is not a vestibule for equity. As a more savvy investor I see that the current financial environment does not make owning a house a profitable enterprise. Instead it is more a luxury. The money freed up can be put to better use in other places. No more keeping up with the Joneses.

More From This Contributor:
I’m Retiring The Smart Way http://news.yahoo.com/first-person-im-retiring-smart-way-172400924.html
Valentine’s Day:The Angst And The Glory http://voices.yahoo.com/valentines-day-angst-glory-10879299.html?cat=43
Jose Rizal The Pride Of The Malay Race (Philippine National Hero) http://voices.yahoo.com/jose-rizal-pride-malay-race-philippine-10836877.html?cat=47

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