Bernadette Joy, financial coach and author of Crush Your Money Goals, once firmly believed in the traditional ideal that owning a home was key to financial success.
Over a dozen years, she and her husband juggled owning up to four homes, balancing living spaces and rental properties. However, three years ago, they sold all their properties and chose to rent instead, a decision that has made them financially stronger and less burdened by property management. “In 2021, when we grew our first million dollars of net worth — that’s when we first started to think about downsizing and going back to renting,” Joy told CNBC Make It. “And then it only took us another three years to make our next million dollars.” This shift gave them freedom to focus on their businesses and invest the proceeds from property sales more effectively. Hidden Costs And Hassles Of Homeownership Many aspiring homeowners underestimate the ongoing expenses beyond mortgage payments. Joy highlights these often overlooked costs: “I spent all this money on renovations and furniture,” she said in the report. Unexpected repairs, such as fallen trees, roof leaks, plumbing, and electrical problems, added to their financial strain. Being a landlord also came with its own challenges. While renting out their home as an Airbnb seemed promising, managing bookings, cleaning, and property damages proved stressful. “The emotional labour that was attached to making sure it was rented out enough was not worth it,” Joy admits, states the publication. Ultimately, selling the properties and investing the money elsewhere proved more profitable and less taxing. Renting: Flexibility And Focus On Growth Currently renting a smaller, more manageable space, Joy enjoys the flexibility renting offers. “We’ll be here for eight more months, and then we’ll go back to a two-bedroom,” she says, appreciating the freedom to adapt her living situation. Unlike homeowners, renters can avoid the difficulties of selling in a fluctuating market or dealing with rising mortgage rates. “I see so many clients right now who need to move, or want to move, and they feel like they can’t,” Joy observes, the report added. Renting enables her to be mobile and concentrate on income growth, free from the burdens of maintaining a large property.
