4 Reasons Why It Makes Sense for Entrepreneurs To Rent
Many of us have been influenced to believe that buying a house is always a smart and safe investment. Yet what many people don’t acknowledge about owning a house is that there are extreme variables that can drastically change your ownership experience. As an investor/entrepreneur what if you need flexibility to take advantage of new opportunities in your business? What if you have to take on large debt positions just to have a roof over your head? There are several things for people to consider that many seem to overlook when making the decision to buy or rent. This post will break down the 4 reasons why it may make sense for an ent
I believe one of the keys to being a great entrepreneur is being in the right head space. When you rent you are less likely to feel overwhelmed with repairs and maintenance because the landlord is responsible for most of it. This will give you the ability to focus your time and energy on other more productive things.
Most people when purchasing their home will come up with between 3-10% down for the mortgage. No matter what the payment is you leveraged yourself to purchase something that doesn’t produce cash flow. People will point to the fact a home is supposed to appreciate and while that is true we all remember 2008. Your same 3-10% down could be used for a cash flowing asset or marketing for your business. One of the benefits of working with an investor focused real estate pro is you will have access to deals that produce a cash flow from day 1.
One of the biggest reasons most people consider renting to begin with is the short term commitment and flexibility it offers. Who’s to say your business doesn’t require you to make some changes in your living situation? Renting would make it easier to pick up and move much easier, even if that means sub-letting your apartment until the lease is over.
When renting it is easier to manage your cashflow because you have less variable expenses. It is not unusual to find an apartment complex that may include all utilities outside of electric. Some like La Vie Properties in Greensboro even offers free cable. When you rent you get to know what just about what your monthly living expenses will be each not only because of utilities that come with the lease but also not having to pay for repairs or maintenance is huge when it comes to having consistency.
As you can see there are more than a couple of reasons that as an investor it may make sense to rent a place rather than purchase a primary residence.