Stress Test No, you’re not throwing your money away on rent
6 snips
Jan 8, 2025 
In this discussion, Ben Felix, Chief Investment Officer at PWL Capital and co-host of the Rational Reminder podcast, challenges the stigma surrounding renting. He highlights how renters can build wealth just as effectively as homeowners through disciplined saving and smart investments. The conversation dives into the hidden costs of homeownership and how psychological factors shape perceptions of success. Felix shares insights on maintaining flexibility and quality of life while advocating for a mindset shift towards financial freedom.
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Renting vs. Owning Perception
- Many Canadians believe that renting is a sign of financial failure.
- This belief is partly due to homeowners having witnessed significant increases in property values, creating a sense of exclusivity.
Wealth Building as a Renter
- Renters can accumulate comparable wealth to homeowners.
- This is achievable by diligently saving the cost difference between renting and owning and investing wisely.
Hidden Costs of Homeownership
- Renting is often seen as "throwing money away."
- However, homeownership also includes unrecoverable costs like property taxes, maintenance, and cost of capital.