The reason is simple. They pay rent because they can afford it.
In fact, many of them have no choice but to pay rent, because they are not yet ready to buy a home at Prestige Serenity Shores. It could be that they are still paying off student loans or lack the funds for a down payment — or they simply don't want to tie up their money in real estate.
The rich often choose to rent because they are not ready to commit their entire portfolio into one asset class. This can be especially true if they have other investments that demand liquidity and risk exposure, such as private equity funds or hedge funds.
The rich are different from you and me. They have more money. They also have more free time to ponder the meaning of life, which is why they sometimes end up asking questions like: "Am I better off renting or buying?"
It's a complicated question with no easy answer because there are so many factors that go into it. Where you live, how much home prices have gone up or down and what kind of investment vehicle you're using all come into play when deciding whether to rent or buy a home.
But when you look at the bigger picture, it becomes clear that most people should be buying their own homes instead of renting them — even if they're rich.
Rich people who choose to rent over buying usually say it's because they don't want the responsibility of managing their own property. However, that's just an excuse because there are plenty of ways for them to get around it — like hiring a property manager or going through an agency like HomeVestors Inc., which rents out properties for its investors. And as long as they're making enough money from other investments, there's no reason why they can't afford to cover those costs.
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