Ep 20 | Breaking Down the Illusion that Homeownership Will Make You Rich
“You’re throwing money away on rent.” Sound familiar? In this episode of The F. Word, Priya Malani debunks one of the most persistent financial myths out there—that buying a home is always smarter than renting. She breaks down why renting isn’t just okay—it might actually be the better financial move, depending on your goals, lifestyle, and timing. From real numbers to real horror stories (hello, flood zone basement), Priya reframes homeownership as a choice, not a milestone you have to hit to be “doing it right.”
Tune Into This Episode to Hear:
Why your primary residence is almost never a good investment
What you’re really buying when you pay rent (hint: it’s not just square footage)
How to know when you’re actually ready to buy—and when it’s better to wait
The truth about home appreciation, equity, and why flexibility might be worth more
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Transcription
You've heard the line: “Renting is throwing money away.” But is it really? Today, I’m unpacking the emotional pressure to buy a home, when renting actually makes more financial sense, and how to know if you’re truly ready to buy.
Spoiler alert: just because your mom says it’s time doesn’t mean it is.
Is Renting Throwing Money Away?
People are convinced that renting is a waste. It’s not. And I can prove it.
The problem starts with thinking about a home as an investment. But here’s the thing—an investment is something that grows in value and something you have access to. With a home, you don’t have access to that money unless you sell it.
And most people only consider their down payment and potential sale price when calculating their “return.” They forget to factor in property taxes, maintenance, closing costs, renovations—and, when you sell, a 6% broker fee. Suddenly, that “great investment” doesn’t look so great.
What You’re Really Paying For
So, is renting throwing money away? Mathematically, no. Because when you rent, you’re buying something too: freedom, flexibility, and zero responsibility.
If a lightbulb goes out, I call my landlord. Too much hair in the drain? Landlord. Need to mow the lawn? Nope. I don’t even have one. I tip well at the holidays, and that’s it.
What I don’t value is spending my Saturdays at Home Depot hunting for a new drain plug. Or dropping $12,000 on a new roof. Or dealing with a patio that floods because I didn’t know to ask about drainage before buying.
Just because you're not building equity doesn’t mean you’re not coming out ahead.
When Buying a Home Does Make Sense
To be clear, there are plenty of good reasons to buy a home:
You love home reno projects
You want to settle down for at least 7+ years
You’ve got a dog that needs a yard
You’re in a school district you love
You want stability and predictability in your housing costs
You’re just tired of moving
Owning a home eliminates the risk of rent hikes. But even then, buying doesn’t always mean cheaper. Just like leasing a car often gets you more for less, renting can allow you to live in a nicer space than you'd be able to afford if you bought.
The “Smart Investment” Myth
Let’s talk about the idea that a home is always a smart investment.
A study found that over the past 126 years, U.S. home prices appreciated just 0.37% per year after inflation. That’s barely ahead of inflation. So no, your primary residence isn’t likely to be your best investment.
Why? Because in order to access that “growth,” you have to sell. And most people don’t want to sell. Your home is where the grandkids visit, where you host holidays—it’s emotional. So unless you’re planning to downsize or liquidate your equity, you probably won’t ever cash in on that “investment.”
What About Paying Someone Else’s Mortgage?
Let’s put this one to rest: paying rent isn’t just “paying someone else’s mortgage.” It’s paying for a lifestyle. What are you getting in return?
For me, it’s freedom and flexibility. I use the money I save (because my rent is lower than a mortgage would be) to invest, travel, and enjoy my life.
Also worth noting: owning a rental property you don’t live in is a very different conversation. If you buy a home and put a tenant in it who covers your mortgage? That’s a legit investment strategy. But that’s not what we’re talking about here. This episode is about your primary residence.
How Much Should You Spend on Housing?
There’s no magic number. Some say 25–35% of your income should go toward housing, but lifestyle matters more than formulas.
If you love being home, you might spend more. If you’re rarely there, maybe you spend less. What matters is being honest about what works for you and your priorities.
Don’t Buy Just to Say You Bought
Stretching your budget to “stop throwing money away on rent” is how people become house poor. I’ll talk more about that in another episode, but for now, know this: the math doesn’t always work in your favor. And the pressure—whether it’s from social media, your parents, or friends—shouldn’t dictate a 30-year commitment.
One of my clients bought in California and didn’t realize the home was in a flood zone. Her basement flooded twice the first year. She told me, “I wish I never bought.”
Renting Can Be the Right Move
Look, I’m a lifelong renter. But this isn’t about me. It’s about busting the myth that renting is always the wrong move.
I’ve seen too many high earners stretch themselves too thin because they think renting means failure. It doesn’t.
A friend of mine pays $7K a month in rent in Brooklyn. Her dad thinks she’s lost her mind. But she values her time and doesn’t want to spend her weekends at Lowe’s. For her, renting makes sense.
The Bottom Line
Renting isn’t throwing money away. It’s about what you get in return. If this episode gave you permission to delay homeownership—or helped you realize you might be more ready than you thought—share it with someone who’s house-hunting on Zillow “just for fun.”
And don’t forget to hit follow so you don’t miss what’s coming next.
