Viewer Question: "Am I Wasting My Money by Renting?" Real Estate Investor Weighs In

This video is unavailable because we were unable to load a message from our sponsors.

If you are using ad-blocking software, please disable it and reload the page.

This past year has been tough for people buying, selling and even renting across the country. That’s why we asked Property finance specialist Danisha Wrighster — who stars in Netflixs "Buy My House" — to answer viewer questions on navigating this tough market, including how to buy a home if you have bad credit and what "hidden" fees can come up when you're purchasing a new home.  

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

"I'm 22 years old and have been living with roommates. I finally feel financially secure and am ready to move out on my own. I want to know how much of my annual income should be put towards renting a place. I also want to make sure I set myself up for success. Am I wasting my money by renting? Should I be working towards buying a home instead?"

Property finance specialist Danisha Wrighster — who also stars in the Netflix show "Buy My House" gives shares her thoughts: 

Don’t Pay Rent... Collect It! 

Danisha brings up a good point against renting. 

"When you’re paying rent, you’re paying off somebody else's investment," she says. 

Because of this, Danisha says your goal shouldn’t be to figure out how much rent to pay, but how little.  

"What is the least I can do to live comfortably," she adds. 

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

"If you really set your mind toward that goal, you’ll get there. And you’ll find the opportunities and the ability to do it," Danisha adds. 

However, can you buy a house if you have bad credit? Danisha chimes in, and exposes hidden fees you may not be aware of

Consider Renting to Own 

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

In response to Mazzy's question, Rach recalls "a long, long, long time ago" when she flipped through the paper and found rent-to-own properties, in which one’s rent would go toward the purchase.  

"A little bit of my rent check would go towards that," Rach says. 

Though they aren’t as common, Danisha says these rent-to-own agreements still exist. 

"If you find a seller that is like, 'I will let you put some of your rent towards paying down [the property],' and pre-negotiates the sale price, [that’s] great." 

If You Do Rent, Only Pay THIS Amount! 

If renting, how much of your annual income should go towards it?  

"As little as possible," Danisha says to Mazzy's other question.  

However, Danisha clarifies that "no more than 30%" should go towards living expenses. 

You Might Like