So many people think that first prize is to buy their own home. But is that really the best option? What does it entail?

1. Insurance
2. Gardening
3. Maintenance
4. Neighbours that you’re stuck with
5. A big chunk of non-discretionary expenses
6. Stress to sell when you want to move on

So what is the alternative? Renting your home. The advantages?

1. No insurance
2. No gardening
3. No maintenance
4. Neighbours that you are not stuck with
5. Flexibility to up size or down size
6. Minimum stress when you want to move on

Compare the long term financial effect.

1. In the short term, the cost of renting is definitely lower than the cost of buying
2. If you are disciplined, you should then invest the money saved.
3. Ultimately, you can build sufficient investments that the passive income will pay your rent, so you’re all square.

What about investing in rental property? Great. But bear in mind that it involves –

1. Insurance
2. Gardening
3. Maintenance
4. Rent collection
5. A big chunk of non-discretionary expenses

Of course, you can always outsource 2, 3 and 4. If you want to build your wealth, this is, in my view, the best way to go.

You simply must hold the investment properties in a trust owned company, but that’s another story.