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Misconception: Renting is wasting money

Misconception: Renting is wasting money

Chris Welch at InvestorGeeks shows us why renting may not be a bad idea. Normal perception shows paying mortgage for a house is better than renting – at least you could own the capital of the house progressively. However in this article, Chris runs through sometimes renting may not be a bad thing at all:

… Look, I like being appreciated just like the next guy, but this rule of thumb takes into account two assumptions. First, we can’t take into account taxes or price appreciation. With few exceptions, a home purchase should first make financial sense without taking appreciation into account, so that no matter what the price of your home does, you won’t be perched precariously over a financial disaster.

Because personal mortgage interest is deductible on your taxes, your overall tax burden is minimized at the end of the year. Because most of the interest in a mortgage is paid at the beginning of loan, your first year you would receive the greatest benefit. For a typical mortgage on a $125,000 house at today’s interest rates, you’d be spending about $7,400 on interest for the first year (it drops to $7300 in year 2). Of the deductible amount, the standard deduction will chop off a good hunk of that right away, so you’d be saving maybe an extra $1,200 on your taxes, and that’s for only the first year! It’s money, but nothing to write home about, in my opinion. In either case, I don’t believe you should spend more money to have a bigger deduction…

Misconception: Renting is for Suckers – [InvestorGeeks]

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Last Updated on July 12, 2021

Lifehack Reviews: 50 Best Life Hacks for Your Life

Lifehack Reviews: 50 Best Life Hacks for Your Life

Do you want to be as productive as many of us, but missed a lot of actions at lifehack.org during the year? We’ve selected the best 50 life hacks, based on their popularity and contents in different categories. Invest your time – read them. Bookmark this page and mark reading them as one of your new year resolutions.

Communication, Writing, Studying

  1. My Best Presentation Tricks
  2. The Business Card Game
  3. Persuasive Writing for Students, Webmasters, Bloggers, and Everyone Else
  4. 7 tips of handling your Emails without feeling overwhelmed
  5. Writing as a Form of Self Healing
  6. Advice for students: Writing by hand
  7. Yes, But Do People Like You?
  8. Writing – Just do it!
  9. A good place to study
  10. Blog your way through Writer’s Block
  11. 14 Tips for Communicating Ideas

Productivity, Creativity, Motivation

  1. 9 Top Secrets of Naturally Born Organizers
  2. Fight The Flab!
  3. More Fight The Flab!
  4. Limit Creativity, Get Innovation
  5. Precious Moments
  6. 5 Ways to Improve Your Productivity in the Office
  7. A Geek’s Best Lifehack
  8. What Kind of Paranoid Are You?
  9. Being A Creative
  10. There’s No Time!
  11. The Mysteries Behind Motivation and How To Manipulate Them
  12. Time Management: Handling Disruptions in Daily Schedules
  13. Productivity Hack: Write Mini Process Flows
  14. Design an Online Workflow

Management, Self-Management, Entrepreneurship

  1. Bare Bones Project Hacks
  2. The 10 Beliefs of Great Managers
  3. The Simplest Path to Success
  4. Letting Things Go
  5. Closet Entrepreneur
  6. Time To Discard The Portmanteau
  7. 5 Important Keys to Bootstrap Your Entrepreneurship
  8. The Most Underutilized Tool for Effective Communication
  9. Everyday Performance Reviews
  10. Meetings, @&!!$*@ Meetings!
  11. What Are You Worried About?
  12. How to Ruin Your Career In Five Easy Steps

Procrastination, Goal Settings, Life

  1. 9 Steps to Define your Goal Destination and Devise a Plan to Get There
  2. Pro-Active Steps to Prevent Procrastination
  3. Improve Your Life By Following A Schedule
  4. The Causes of Procrastination And How To Conquer Them
  5. How To Make Resolutions You’ll Keep
  6. Literal Life Hack: Cut your window of time in half
  7. New Year’s Resolutions and Deficit Thinking
  8. 6 Sleep Tips
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Are there any lifehacks that you’ve learned over the past year?

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Featured photo credit: Rainier Ridao via unsplash.com

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