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Stuart Ritchie

By: Stuart Ritchie

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June 16th, 2019

Is renting throwing my money away?

Investment | Financial Planning | Financial Education

Many of us own property back home.

Some of us have mortgages on our expat homes too.

While most expats rent...

Emotionally, it often feels we should be buying.

Which one leaves us financially better off? 

A little while ago, my colleague looked at the merits of owning, renting (or hailing) a vehicle.

Because questions like these are important to our expat clients.

They want to know they are maximising their wealth while overseas.

And property is even more emotive.

With popular opinion being that ‘renting is wasting money’.

But is it?

I recently watched a video from Bloomberg which answered this question nicely.

Granted it’s not specifically aimed at expats…

But the debate around whether to rent or buy remains.

It argues that if you don’t plan to stay in the same place for more than 5 years…

(I.e. most expats I know)…

You are probably better off renting.

Weighing up the costs of ‘wasted money’ for both options, it illustrates why renting shouldn't get such a bad rap…

And why in many cases it's less of a headache, and more affordable, than buying.

I’d love to hear from my fellow expats on this one.

Drop me a comment below.

 

About Stuart Ritchie

Stuart Ritchie is a Chartered Financial Planner, APFS, Chartered Wealth Manager, Chartered FCSI

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