The WSJ published a lengthy article on the calculations to determine whether renting or buying is the smartest option. Most people think that renters are poor losers. Actually, in many cities, including Charleston, the smartest financial experts rent because it makes the most sense.
Making the case for renting an apartment in Charleston, SC even more compelling is when the individual can earn more of a return on investing in other assets, such as stocks. For professional stock-pickers who can earn double-digit returns, it makes no sense at all to tie up capital in the form of low-return real estate.
The money saved renting can be turned into far more profitable investments in the stock market.
Excerpts from the WSJ are, “People often aspire to own a home for reasons that have little to do with money, and rental options are limited in some communities. Yet owning property can limit your flexibility to move when you want and ties up a lot of your money.
The monthly cost of renting was lower than buying in Charleston and many other cities at the end of last year, the most recent period for which data are available, according to figures provided exclusively to The Wall Street Journal. That is up from a year earlier.
Renters don’t end up with a valuable asset, as buyers do when they pay off a mortgage. But renters might be able to make more money by investing the monthly savings, as well as the cash they would otherwise use for a down payment, he says.
Your monthly costs end up being lower.
Renters often have greater flexibility to move to a different part of the country, which can be important in a weak job market. They may feel freer to look for work in another city, and they don’t have to wait to sell their home if the right opportunity opens up.