Lifetime renter - it's a lifestyle

To buy or to rent? You may not think it's anybody's plan, but being a lifetime renter is actually a great choice. It's one that's already a common experience in cities like New York, Miami, Boston and LA, where owning property is beyond most people's income level and location is more important that homeownership. It's also catching on with a generation that doesn't want to be tied down with financial responsibility instead of the financial freedom to move and pursue different opportunities.

It's hard to fathom for some people. The media is constantly making ownership the most desirable goal, but the reality is, home ownership isn't for everyone. Conventional wisdom says buy if you can, especially with the current low interest rates, because you build equity. And if you’re young, you need a place to live and to house your children. When you sell, you’ll be able to afford a nicer home or make a profit and downsize. It all sounds great in theory, however, that theory assumes that you will buy at the best time and sell at the best time, thus maximizing your profits. Nor does it factor in the costs of inflation, renovations, maintenance and upkeep, property taxes and so on. In some cases, being a lifetime renter is the preferred option. Here are some scenarios where those who could afford to buy still opt to rent, and why.

1. Young professionals more interested in travel than yard work. Couples without children who travel a lot often prefer to ditch the gardening obligations, bills and headaches associated with owning a home. Footloose and fancy free, they would rather put their money into an investment portfolio. Let the landlord deal with utilities and upkeep. They’re off on adventures!
2. Entrepreneurs running a business. They frequently work long hours and struggle to find time for family and friends, never mind house repairs or tenants. Any extra funds they have are being put into building the business, therefore owning a home is not a priority.
3. People in careers that are planning to transition in the next three to five years. If they own a home they may be stuck selling during a down market but have little choice in the matter since it their time to move on. Being a renter makes it easier to pick up and leave when they need to, and practically speaking, their time and energy are focused on their careers.
4. Families with small children or caring for elderly family members may simply not have the time that home-owning requires. They are choosing the priority of family, and that is certainly a full-time job in and of itself. Giving a rent check and then forgetting about it for 30 days is infinitely easier to manage than the responsibility of home-owning.

One of the added benefits of being a lifetime renter in provinces with rent control – your cost of living doesn't rise at the same rate as inflation. If you keep the same apartment, your rent can only go up by small increments, after 10, 15, 20 years, you'll find your rent will be greatly under the market rent values in a high-demand area.

If you match any of these scenarios, you will likely enjoy being a lifetime renter.