Are You Wasting Money by Renting Instead of Buying? Real Estate Investor Answers

Are You Wasting Money by Renting Instead of Buying? Real Estate Investor Answers

The past year has been tough for people buying, selling and even renting across the country. That’s why we asked real estate finance specialist Danisha Wrighster – who stars in Netflix’s ‘Buy My House’ – to answer viewers’ questions about navigating this tough market, including how to buy a house if you have bad credit and what “hidden” charges may arise. when you buy a new home.

Here she answers a question from a viewer named Mazzy, who is trying to decide whether to rent her own place or stay with roommates and save up to buy instead:

“I’m 22 and live with roommates. I finally feel financially secure and ready to move on my own. I want to know how much of my annual income should be spent on renting a place. I want to also to make sure I succeed. Am I wasting my money renting? Should I be working on buying a house instead?”

Real estate finance specialist Danisha Wrightter, who also stars in the Netflix show ‘Buy My House’, gives her opinion:

Don’t pay rent… Get it back!

Danisha raises a good point against the rental.

“When you pay rent, you pay someone else’s investment,” she says.

For this reason, Danisha says your goal shouldn’t be to figure out how much rent to pay, but how much.

“What less can I do to live comfortably,” she adds.

Danisha encourages Mazzy to get to a point where she can buy a property so she collects rent instead of paying it.

“If you really focus on this goal, you will get there. And you will find the opportunities and the ability to do it,” Danisha adds.

However, can you buying a house if you have bad credit? Danisha intervenes and exposes hidden fees that you may not be aware of!

Consider renting to own

Instead of deciding to rent or buy, you can do both.

In response to Mazzy’s question, Rach recalls “a very, very long time ago” when she flipped through the newspaper and found rent-to-own properties, in which the rent was used to purchase.

“A small portion of my rent check would go towards that,” Rach says.

Although not as common, Danisha says these lease-to-own arrangements still exist.

“If you find a salesperson who says, ‘I’m going to let you use some of your rent to pay [the property],’ and pre-negotiates the sale price, [that’s] great.”

If you rent, only pay THIS amount!

If you rent, how much of your annual income should go to it?

“As little as possible,” Danisha said to Mazzy’s other question.

However, Danisha clarifies that “no more than 30%” should be spent on living expenses.

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