Rent vs Ownership: which is more profitable?

What if we overpay every time we buy, but don’t rent? Are all these purchases that necessary to us, if it is cheaper if you rent a thing? Rent vs Ownership: which is more profitable?


“Have you got an apartment?”, “an automobile?” – The answer to these questions seems suddenly to change the attitude to man. It is believed that if you bought something expensive, then you achieved a certain status in society. Somewhere  it is so, because for all of these purchases we need to earn money. But what if apurchase is not a necessity?

A few days ago I suggested my friend to have a walk along the Dnieper River by boat. From our previous communication, I’ve concluded that she’s from a wealthy family. And that’s how our dialogue was:

– Hello! I’m going to boat, the weather is good. Will you join me?

– Have you got a boat?

I go boating once a year or less, so buying a boat always seemed to me foolish. But this dialogue made me think about why some people tend to buy  and to own everything , while others live as they want, and, if necessary, take things for rent.

To have something in our property is, in fact, the same that we rent it.

When a couple buys or takes out a mortgage apartment, in the society it causes the approval or at least understanding. The young family wants to make their nest, wants stability, so that the children could have a place to live and could inherit it. Anyway, real estate is one of a few more or less reliable ways to invest. So, if you have money, why don’t you buy an apartment?

We will not even consider some examples of wealthy people who do not buy their own apartment, and live in leased appartments(as Artemii Lebedev). Nowadays apartments are overrated, it is understood even by people who do not have deep knowledge in the areas of real estate and construction. If you count the cost of the apartment (even if it is $ 200-500 thousand) and compare it with the lease (let it be $ 10,000 per year or $ 500,000 for 50 years), it turns out that the costs are comparable. Of course,  possession of an apartment, as well as the lease, has its obvious advantages and disadvantages. The only thing is that that to have something in our property is, in fact, the same that we rent it.

Everything I have doesn’t really belong to me.


How long will your newly bought house be? 30, 40, 100 years? If you think that in 50 years your apartment will be all right, look at 50-years-old apartments. In general, a very little of houses outlive their owners. It turns out that buying an apartment is like a long-term lease. No wonder that in China buying an apartment gives ownership of only 70 years.

How about a car? If you buy a car – is it for ever? Even if you do not change it, how long it will “serve” you? 10-20 years? Then it will go to the dump, nevertheless once it was all yours. It turns out that buying a car – is also a long-term lease.

How about a human life? The human body, which is given us for free, is not eternal as well.  In fact, we take in rent ourbodies – somebody for  30 years, somebody for 60 or 90 years. We redo it, choose quality “gasoline”, drive the body to “inspections” to doctors. But the body is still not ours, because it does not last forever. We can not have something for ages, so we can not call it a possession in the full sense of the word.

Is there anything in this world, at least one thing that we really posses? Unlikely. Houses will be destroyed, cars will break down and rust, and the former “owners” will pass to the other world.

Why do we buy then?

A person living in the world of instability, wants to pay a double price for at least some guarantees. Buying an apartment, we hope that none of us will not be evicted from there and that the repair can be done to our liking, without disputes with the owner. Buying a car, we want to be sure that it will always be available. And we buy new clothes to be sure that no one wore it before and that it will always be ours.

A day has a total of 24 hours. How much time can you spend on your belongings? A couple of hours on the car, 10 hours on suit, a few hours on the phone and e-book, 20 minutes on bike. Rest of the time these things are idle, while they could serve someone else. But you still pay for full time – an overpayment, isn’t it? Buying something that can be rented, we pay more for a sense of confidence. And this feeling often has little in common with the reality, as in the case of disasters, wars and earthquakes, which may destroy your house, and in the case of ordinary domestic troubles such as stolen cars or accidentally torn jeans – anywhere there are no guarantees.

Anyway, if you see a person who lives in rent – take off your hat. Such people have nerves of steel, they don’t need a warranty. But if a person is a shopaholic and has an excessive desire to save for a house / yacht / boat / plane, it is probably that such people tryto compensate fears, to feel safe and to gain control over their lives. Tap them on their shoulders.



If you rent something, you do not overpay for guarantees and confidence in the future. That’s why the rent is more profitable than buying.





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