In one of the best-selling books of all time, “Rich Dad Poor Dad,” Robert Kiyosaki, the author suggests investing in assets that generate passive income. Your home is not an asset because it does not generate revenue. Therefore, it is better to rent than buy. The book mainly focuses on the debate about house buying or renting and Kiyosaki’s arguments based on his personal experiences and opinions, which may not apply to everyone.
Renting vs buying should be based on carefully considering individual goals, resources, and circumstances. In this article, we will not discuss whether to buy or rent a property; we will focus on the other things you use it your life.
Things like furniture, electronic gadgets, camping equipment for your holidays, clothes and accessories for those special occasions, books, bicycles, etc. The cost of these items is comparatively much lower than the cost of the house, but it still needs an evaluation.
Here are some points to help you in your decision-making.
1 Financial demands
The price is one of the most essential things you consider while buying or renting. When you buy any product or service, you need to lose your purse, while when you take it on rent, the financial impact is a little less.
Rental rates are significantly lower than prices if you want to purchase an item. If that is the only criteria for your buying or renting decision, consider the long-term impact and your usage.
2 Requirement of Space and Logistics
For many of us, space is a huge constraint, especially for people living in tiny houses with limited area. Avoiding multiple heavy and bulky items that take up much space in your home is always advisable; renting can be a good idea.
If you are short of space, then renting is an excellent idea for any items that are not frequently used. For example, an extra bed for a guest who might occasionally come, a bicycle for your occasional endeavor, etc.
3 Repairs and Maintenance
Buying a product is not just a one-time investment; we must make constant repairs and spend money on maintenance. Therefore an essential criterion in your buying or renting decision is the expenses of repairs.
We don’t have to worry about maintenance if we rent a product. However, if the rented product undergoes damage, you might incur a considerable price based on the rental agreement.
4 Testing Product Claims
If you are unsure about the product’s quality and want to try it before buying them, renting is an excellent idea. Renting a product helps you test the quality, comfort, reliability, and other aspects.
In cases when looking at the product catalog or advertisements, speaking to the sales executive leave you confused regarding the veracity of the claims. You can rent the same product (if available) to validate the claims before buying it.
5 Explore Options
Apart from testing the product quality, renting also allows one to explore multiple options before picking one. You can select from a gamut of options, try them and choose another if unsatisfied.
When you rent, you can access a wide range of products that otherwise would be expensive or needed only for one-off use.
6 Try New Hobbies
Renting also allows you to try out new experiences and hobbies without committing to purchasing expensive products, equipment, or gear.
For example, suppose you got inspired by your friend’s Instagram post and got interested in going to an offbeat location, staying in a tent, mountain cycling, or floating in a kayak. In that case, you can fulfill your desire by renting vs buying.
7 Flexibility to Upgrade and Change
Renting allows you to change and upgrade to a better product version anytime without considering factors like disposal, resale, or donation. Based on your satisfaction levels with the product, you can get another product.
8 Resale and Disposal
Reselling an owned product involves many tasks like – finding a potential buyer, fixing a fair price, and delivering the product at the new buyer’s place – and doing these can be extremely daunting. Similarly, disposal of the product also has challenges, especially e-waste & plastic waste, which needs extra caution.
In the case of renting, as you don’t own the product, you don’t have the authority to dispose of or resale it. After the use, you can give it back to the owner.
9 Environmental Factors
Renting can have environmental benefits as it can reduce the overall consumption of resources and the environmental impact associated with the production and disposal of consumer products.
Renting can be a helpful strategy for practicing minimalism because it allows you to have access to items without actually owning them. Instead of holding a lot of possessions, you can rent what you need temporarily, which can help you reduce clutter and simplify your life. Renting allows you to be more purposeful with what you bring into your life and can help you avoid accumulating unnecessary possessions.
Renting promotes the sharing economy, which can help you finish the job without owning and storing the product. We can reduce waste and conserve resources by sharing and using items more efficiently.
Instead of everyone owning a drilling machine in a building or a lawnmower in a society, households could share those items whenever needed. Similarly, many small and large things can be shared among the community, eventually reducing the overall environmental impact of these activities.
Renting is a significant step to using items more efficiently because people know they only use them temporarily and need to return them in good condition. This can help reduce unnecessary consumption and waste, as people are more likely to make do with what they have rather than constantly buying new items.
Overall, in renting vs buying debate, there may not be a perfect answer; taking things on rent can help in reducing consumption and promote more sustainable resource use, which can have environmental benefits.