What do you think of people who decide to rent their whole lives?

I feel sorry for them because they are so short-sighted as research shows that homeownership in America is an important factor in building wealth. If you pay an average of $2,500 a month in rent for 30 years that’s $900,000 totally wasted that you could have put towards owning a home that would have provided tax benefits and potential appreciation. If you factor in annual rent increases that number is over $1,000,000!

Sure, renters had the ability to move whenever and wherever they wanted over the years but what do they have for retirement after 30 years? Studies show that home equity is also a major source of assets for retirement for most people.

I will also feel sorry for life-long renters as they try to survive in retirement on Social Security (averaging $1,461 a month in 2019) . However, they had a choice and they chose to live in the present and not plan for the future…

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