Bernadette Joy is a personal finance coach and author of "Crush Your Money Goals". She's heard all the arguments against renting, from throwing money away to losing out to inflation. Homeownership, after all, is a cornerstone of the American Dream.

"I grew up with this ingrained belief that owning a home was the right path," Joy said. As her career progressed, she followed that path. From 2010 to 2022, she and her husband owned 4 homes, often two at a time—one to live in and one to rent out.

But three years ago, they sold everything and went back to renting. Joy says it's made her wealthier, allowing her to invest and focus on her business instead of managing multiple properties.

"In 2021, we hit the $1 million mark in net worth. That’s when we started thinking about downsizing and renting again. After that, it took us only three more years to reach $2 million," she recalled.

Bernadette Joy is a self-made millionaire. Photo: Bernadette Joy

Bernadette Joy is a self-made millionaire. Photo: Bernadette Joy

Joy finds renting cheaper, more flexible, and a better fit for her lifestyle. "I could absolutely buy a place in cash today. But for the past three years, I’ve chosen to rent," Joy wrote on Bankrate.

Joy acknowledges that buying makes sense for those who value long-term stability. With a 30-year mortgage, payments are fixed, while renters are vulnerable to inflation. When prices rise, owners benefit from appreciation, while renters face increasing costs.

Monthly mortgage payments build equity. Becoming a landlord and having someone else pay your mortgage accelerates wealth building. However, having experienced both, Joy chooses to rent for several key reasons.

The hidden costs of homeownership: While mortgage calculators offer comparisons for prospective buyers, the monthly payment isn't the only expense. Beyond taxes and insurance, there are renovation costs to personalize a home. "I’ve poured so much money into renovations and furniture," she said. Then there are unexpected issues: a fallen tree, a leaky roof, plumbing problems, electrical malfunctions. "People tend to underestimate those costs," Joy said.

The challenges of being a landlord: Many envision buying a property and renting it out to offset mortgage costs. But for Joy, being a landlord wasn't worth the hassle. Renting through Airbnb, she realized profitability required significant effort, from managing bookings and hiring cleaners to replacing broken items. There was also the emotional toll. Joy recalls responding to a guest's message about where to put the shampoo bottle while dealing with a family emergency.

"I remember telling my husband: We are selling this house. The mental load to maintain this rental is not worth it," Joy said.

Joy realized selling her properties and investing in index funds yielded higher returns with less stress. She did the same with the savings from downsizing from a 4-bedroom to a 1-bedroom apartment.

Renting for a flexible lifestyle: Their current 65 m2 apartment is small. "We really need our own bathrooms. But the great thing is that we only have to be here for eight more months, and then we can move into a two-bedroom," she explained.

Joy believes this flexibility is difficult for homeowners to achieve. Real estate prices don't always rise. Those who bought in 2007 often waited six years to break even. Also, those with low-interest mortgages are hesitant to buy in today's high-interest rate environment.

"I’ve seen so many of my clients want to move and they can’t. Buying a new place now means they’ll have fewer choices at higher prices and interest rates," she said.

For Joy and her husband, renting provides essential flexibility and freedom. She's seen people limit their career or income potential because of real estate commitments. "My income has gone up in the last three years because I’ve been able to be flexible and not have to spend time and effort maintaining a 4-bedroom house," she concluded.

Ha Thu (CNBC)