Is renting a house is a complete waste of money for students? There are several different opinions, which lobby for not renting but buying your own place to live. Some of them sound like: “Why pay the landlord’s mortgage when you can pay your own?” or “If you are subletting, you are just throwing your money away”.
At some point in his or her academic career, every student must face this dilemma: should he or she rent or buy a place of accommodation?
What are the benefits of renting for students and how can you make the best decision concerning where to live when you study at college? To get an inside scoop on what’s really going on, let’s start from the very beginning.
On the one hand, real estate is one of the safest ways to invest capital. And if you have the money, why should you go through the trouble of renting a home? We’ll discuss all the positives and negatives of renting and buying.
Buying is still a form of rent
When you lease a house or flat, you are absolutely not throwing your money away, as you are getting something in exchange for it – a place to live. This means that you are leasing space for a certain period of time, and it has no value to you once your payments stop.
When you buy – you are still renting. Instead of leasing space, you are leasing money, typically in the form of a mortgage. The difference is that the money you’ve borrowed is used to by an asset that you hope will appreciate. It helps that you also happen to live in it. In this situation, the mortgage payment consists of a blade of the money you’ve borrowed most commonly, as well as any payment against the balance you’ve borrowed.
Dido, an English pop star, has an awesome song called “Life for rent”. The beautiful words poetically point out that nothing we have is ever truly ours. And from a philosophical point of view, it is really the truth, as we don’t know how many years we are going to live. Yet we continue to take out loans we must pay back for 50 years.
“The rule of 10”
In most developed countries, when comparing the price of subletting a house or buying your own, it is common practice to use “the rule of 10.” It is deemed that the sum total of leasing a domicile for 10 years should be equivalent to the total price of said habitat. As such, if the sum of your rent is greater than the overall price of the house, you should look to buy it, rather than let.
Why do we buy?
We all live in an unstable world and we are often ready to pay twice the price for even a bit of guarantee. “One bird in hand is worth two in the tree,” after all… If, for instance, you seek guaranteed high-quality help for a low price on an essay or term paper, you’d do well to view customwriting.com website to find the best specialists ready to help you in a short time.
Likewise, when buying a home, we can rest assured that we won’t be evicted any time from our place of living by its owner. We also like to make everything to our liking without having to argue with the owner of the home.
When we buy a car, we want to make sure that it is accessible any time we need it.
We only have 24 hours in a day. How much time do you spend on your things, like a car, clothes, smartphone, and bicycle? Do you spend enough time on the most important things to you? It might be 5, 8, or 10 hours per week if you’re lucky. The rest of your things are generally done out of action while they could just as easily be spent serving someone else.
When we buy an item that could be let, in part, we are paying n for a sense of confidence and security. Moreover, this feeling frequently has little connection with the reality. We can never be guaranteed that any disaster, be it war or earthquake, would never level our house to the ground. Further, we have no guarantees that our car won’t be stolen or our jeans won’t be (unintentionally!) ripped.
That is why when you see a student living with peace of mind in a contracted property – extent your hat to him or her. This person has a steel sense of moderation. He or she is not looking for guarantees, but a chance to live well in the moment.
Visible pluses of renting
– Mobility and diversity. You are not tied to any place and you can switch your domicile almost as often you like.
– An absence of household responsibility. It is very convenient that if something is broken, the property owner must come and resolve this issue. This is especially good if you’re not especially good at fixing things by yourself
– Financial freedom. When you rent, you are free from all mortgage obligations and you don’t put your life on loan.