Never Rent Your Own Home ⛔️

Never rent your own home. I see this debate go wild, and in fact, many Americans, they are adamant you should never buy your own home. I strongly disagree with this, especially in the UK, and I'm going to share with you quite a lot of reasons why I believe you should never rent your own home. There is one main exception which I will share later on. I think you have to be very careful when taking financial advice. People say to me, well, Rob Moore, what's your financial qualifications? Owning 340 rental units, having 1,350 tenants, being an entrepreneur for nearly 20 years, doing over £200 million in sales. So, you know, I have got a lot of experience in this. So here are 1, 2, 3, 4, 5, 6 reasons you should never rent your own home. And then I'm going to give you some solutions because people say, oh well, Rob, but I can't afford to buy. Okay, so reason number 1, rents are really high at the moment. Rents have gone up and up and up and up. And people say, yeah, but I don't have any choice. But actually you do. Again, I'll do the solutions bit at the end. Number 2 reason you should never rent your own home, and I believe always buy when you can, is because rent is possibly your single biggest expense. In fact, I would say that your rent is more than your food, your rent is more than your cars, so I would say your rent is your single biggest expense. However, it's totally dead money. Food isn't dead money in the sense that you can't live without it, but rent is totally dead money. It's all gone. When you have a mortgage, some of it pays interest, but some of it pays the property down, so at least you are owning an asset. Now let's just look at how much dead money rent is. So I don't know what the average rent in your area is, and it'll vary. Um, but here, let's say, um, for somewhere basic, it's about $1,000 a month. That's $12,000 a year. With, with added compounding and inflation, that's more than— that's probably $150,000 to $200,000. Every 10 years you could be paying half a million or even a million in your life with inflation in rent. Oh, and by the way, it's after tax. And so at the moment, if taxes 45% income tax, you literally could be paying £1 million with inflation in your life if you rent. Now I'm not saying, oh well, you've got to just pitch a tent, but imagine that paying down an asset. Okay, the next reason why I don't believe you should rent your own home is because the landlord can kick you out at any time. Now, Leah said, it's all good and well saying never rent, but if I can't rent, I can't live in a house. Stay with me, Leah. Now, of course, those of you who are young, you can take this advice from the start, or rather my experience. I don't really do advice, I do experience. Of course, if you're stuck in the cycle, I get that you're where you're at. So I would say to you, those of you that are renting are stuck in the cycle, you've got bad credit, you've got bad affordability, Just make a plan to buy a house as soon as possible, I would say. Now, a lot of people say, oh, Rob, don't buy a house, um, because, you know, you've got this big mortgage and you're trapped. Well, yeah, the banks want to give you a mortgage and make a load of money out of you and trap you, but you can play the banks at their own game. Okay, so your landlord can kick you out at any time. Moving is one— is a really big expense. You have to spend a lot a lot of money when moving. There are no tax breaks on rent, and after tax your rent is double. So if it's £1,000 a month, it's actually £2,000 a month. Now some of you here are going to say, I haven't got good credit, I can't afford a mortgage, etc. Okay, so if you— if it's impossible for you to buy, then, you know, you rent until you can buy. You set a goal to get your credit sorted, to save the deposit, to be resourceful, to be creative. Now, any of you who are younger, then of course, you know, you might be able to go, go along and take this strategy from day one. Okay, fine. So for those of you that are quite young, stay at home with your parents. So, you know, when I was young, if you were like 22 and you still lived at home, it was really looked down upon. Um, I remember a friend of mine who was nearly 30 and he still lived at home, and I was like, What are you? But actually, he was really smart because what he did was he stayed living at home until he could afford to buy a house, and then he bought a house. And he actually, you know, at a fairly young age, he had that mortgage paid off and he owned his full home. So number 1 is you can stay at home with your parents until you can afford to buy. Number 2 is you could get creative in raising the deposit. Maybe you could get a loan for friends from friends and family. Um, maybe you can sell a load of stuff that you, you don't need in your house. Or what you could maybe do is, you know, have a cheaper car and cheaper other living expenses so that you can accrue up the deposit, um, as quickly as possible. Um, yeah, Rocco has said Rob Moore was 25 and a broke artist, look how far he's come. Actually, Rocco, this is a really good point because I was financially destitute everywhere but I owned my own home and there was a massive load of equity in that home. And everything I'd put into cars and clothes and all of that had just disappeared. But the money that I put into my mortgage had actually gained me a load of equity. So I had a lot of money there. So again, that's another reason why I think you absolutely should do your best to never rent and always buy. And people always say, oh yeah, I can't, Rob, because But actually they haven't really looked at what they can do. They haven't got resourceful, they've just resigned. They rent but then they have a car that's as much as their rent. You know, or they spend a lot of money they don't necessarily need to spend on things they don't necessarily need to impress people they don't necessarily like. So stay at home until you can afford to buy. Get creative in raising the deposit. 'Cause people don't understand, right? People think, oh, rent, it's $1,000 a month. Yeah, that's $12,000 a year. With compounding, that might be $170,000, $180,000 every 10 years. With tax taken off, it's double that. And if they thought about it like that, they would never rent. Never. Okay, the next thing you can do is you can buy and you can rent out some rooms to pay your mortgage. So I know someone who lives just over there, and she's bought a nice house and she rents out 2 rooms on Airbnb to students who come and train with me at my company's Progressive Property. So that's a pretty smart way of doing it. The next thing you can do is buy, just buy somewhere really small. Buy somewhere really small and move up the ladder as quickly as possible. You'll earn capital growth. Oh, and here's a big thing that people don't understand. You can, the government with high inflation are essentially paying your mortgage off for you. So when inflation is 10% and you've got a mortgage, then your mortgage is going down by 10% in relative value. However, when you're paying rent and there's 10% inflation, your rent will go up more than 10%. So look, I know a lot of Americans aren't going to like this. I know a lot of people are going to disagree. Ah, mortgage, it's overhead, it's debt. It's good debt. It's not dead money. You know, even if your interest was really high, whereby you paid $250 grand over the lifetime of the mortgage, um, for a $100 grand house, by the time you paid that $250 grand over 25 years, that $100 grand house has gone to £200,000, £400,000, £600,000, and you only paid— you only paid an extra £150,000 over the 25 years in interest. So, um, William has said, I'm in America and inflation is 76%. I don't agree that inflation is 76% in America, but if inflation was 76%, you absolutely would not want to be renting because your rent would be going up 76%. And you absolutely would want to be buying because your mortgage would be going down by 76%. So this has just edified my, my argument. Now, those of you that can't get a mortgage or you're not there yet, that's okay. Make the plan as quickly as possible, get the debt paid down, be resourceful, and rent— see rent as only a really short term. I fully accept and understand that where you're at right now, you may be forced— it may be the only way. And of course, it's all very well me saying this. If you just— if you'd watch this video when you were 17, you could have stayed at home until you were 23 and then bought a small place. It's diff— I, I accept if you're 40, you can't just say, oh Rob, I'm going to buy. But you can— you can't change the past, but you can change the future. So I'm just saying, look, if you look at renting over a 25-year term versus buying over a 25-year term, it, it is not even in the same ballpark. So let's do some rough maths. Let's try and include some inflation, but I'll do it really rough. So if you pay 25 years of rent at £1,000 going up 8%, um, or maybe even 6% a year, then in a 10-year period you're probably going to be paying £170, £180. So in a 20-year period you might be paying £400. You could be paying £600,000, uh, not for a really fancy house, in rent over 25 years. All dead money, get none of it back, don't own any assets or anything. So £600 grand. Now if you get a mortgage of the same amount, you might have to have a slightly cheaper property, maybe, but you might say own a a £250 grand house, let's say, and then, um, your mortgage, if it's on average 7%, then you might pay— even if you paid the same, let's say you pay the same, £600 grand on a £300 grand house in repayment and interest on your mortgage. You've paid £600 grand, but your property's gone from 300 to 600 to 900 to more than a million, and you own it. You have a million in asset. So you've turned 600 into a million that you own with a mortgage, and you've turned 600 into nothing, and your landlord can kick you out, and moving is really high, so you're going to have a load of extra moving expenses as well, and it's all after tax, which means you've probably paid double. So get resourceful, get out of there. Oh, here's another thing: your credit will be much better if you have a mortgage than if you don't have a mortgage, which means you can buy more assets that produce recurring income if you don't have a mortgage— if you don't, if you don't rent and you have a mortgage. Amanda said delusional. I don't know what she's referring to there. Now some people say, oh well, Rob, you don't want to get into debt. You don't want to get into bad debt for cars and conservatories and TVs. You do want to get into debt to buy assets that produce income over and above the debt. That's how you get rich, because you can't get rich— well, it takes a long time to get rich by saving. It's much quicker to get rich by investing. But many people don't have enough money to invest. Um, uh, so you use bank debt to leverage to invest. Amanda has said rent, it's beyond most people's reach. No, it's not. It's not. It's not beyond anyone's reach unless if you are born, uh, poor in a country where you have no internet and no information, it is beyond your reach. I accept that. But you're all watching this on the internet, so it's not beyond your reach at all. Absolutely not. It is within your reach. It's just what you believe. Amanda has said again, you have to have cash to make cash. No, you don't. That's nonsense. If you had to make— if you had to have cash to make cash, no one would make any cash. Or only those that were born into wealth would make cash. But then how did they make their cash? That's a paradox. It's an oxymoron. Nearly all millionaires are now self-made rather than handed down inherited wealth. So you don't have to have cash to make cash. It's not true. You— everyone starts with nothing. You get a job, you get resourceful, you create products, you create pitches, you learn how to sell, you learn how to market. Look, I'm not saying it's easy, but, um, you know, sometimes it's people's mindset that holds them back. Amanda said, I work full-time, my partner works full-time, and rent makes sure we have no spare cash to save. Exactly, exactly, Amanda. I'm not saying it's easy. I'm not, you know, obviously you could be a bit stuck, but exactly, you have no spare cash, you have nothing to invest, you have nothing to buy a house to get deposit because you're renting, because rent's so expensive and dead money, and you're getting nothing back for that rent. This is my point. So I hope you found this content useful. I wonder if you might— I think a lot of people get this wrong. You can see in the comments here a lot of people are, that's impossible, you you know, I will never be able to buy. It's actually a myth. You can. You just have to change your behaviors and have to change your programming and change how you were raised and get resourceful and creative. And it's very possible. And by the way, if you would like to learn more on how to own property, invest in assets, produce income, get out of the rent trap— because you lack— by the way, with rent, your landlord can put your rent up at any time. Rents have gone up 30%. In the last, what, 2 years in Peterborough. So if you want to get out of that trap, you need to educate yourself. You need to learn, earn, invest, change your mindset. Exactly. Um, need to invest in assets that produce income, um, and learn how to be resourceful and entrepreneurial. And if you'd love to learn how to do all that, then, um, join Rob.team. Rob.team, I guess, the next step from watching my free content here. Rob.team is my digital financial freedom platform where you can make, manage, and multiply money. Um, there's hundreds of hours of courses, resources, and masterclasses going back since before COVID BC. It's easy to join, it costs 22 pence a day, you can cancel anytime, no ongoing contract. Just type in rob.team. Rob.team. Amanda says she's offering me a challenge, or unless she's saying it in the comments Amanda, I challenge you to join rob.team. It costs you less than 22 pence a day. You can cancel anytime, no ongoing contract. I challenge you to consume all the content in there and educate yourself, because Amanda, you could borrow the deposit for a property from a family member or a friend. What's stopping you doing that? I'm sure you've got good connections. And you know, you have— you and your husband both work. I'm sure you could. What's stopping you doing that? So I'll see you in rob.team. Type in r-o-b dot t-e-a-m Join for less than 22 pence a day, cancel anytime, no ongoing contract. Learn how to make, manage, and multiply money, invest in assets, produce recurring income. By the way, I was 50 grand in debt, you know, when I started in property in 2007. And, um, but I was living, um, above my parents' pub, and, uh, you know, they could have charged me rent, but they didn't, so it was free. And I didn't move out until I bought a house. Now my dad wanted me to move out, so he helped me and he helped me with the deposit and I moved next door and I bought a house for £112,500, which is now worth probably 2.5 times that. And I got a, back then, £12,500 mortgage. Um, you know, I believe that mindset creates wealth as much as your strategies and tactics. So if you do not believe you will ever be able to buy, you'll never be able to buy. Um, and resourcefulness is, I'm going to find a way, I'm going to raise the money, I'm going to make it happen. My situation currently is only temporary, even if it's not ideal. And there's a lot of mindset content in rob.team as well. Because the, the skill set without the mindset will leave you upset. So if you look, um, I've been challenged here on this. Join Rob. I challenge you, I challenge you to join rob.team for less than 22 pence a day, cancel anytime, no ongoing contract. You can even gobble up all the content and when you've consumed it all, cancel. I mean, good, that's a challenge in itself because you'll never catch up. But I challenge you to do that because, um, you are one friend, one family member, one JV partner, one creative idea away from being able to find the deposit to buy a house. And it is literally— it is the difference between owning a million-pound house outright, that's just a small house, and paying £600,000 in dead money over 25 years. So over 25 years on a humble house with a humble mortgage and a humble rent, over 25 years, if you, um, get a mortgage and buy, you'll own a million-pound house minimum outright. And if you rent, it'd have cost you £600,000 minimum in debt money. It's the difference of £1.6 million over 25 years on a really, really, you know, humble amount of rent or mortgage. And yet everyone says you should rent and not buy. What the fuck? Amanda says, I'm inspiring but a little bit misguided. No, I am what I am, Amanda. You know, I don't expect everyone to see the world like I do, but it depends what you want, doesn't it? Do you want to be more successful? Do you want to get yourself out of the debt trap? You know, do you want to make more money? Do you want to invest in assets? If you don't want to do any of that stuff, I'm probably the wrong guy to listen to. Um, if you do want to do that stuff, I'm not misguided. I am the guide. I have— you asked me to challenge— you challenged me, I've challenged you. So there you go. I'll see you, knob.team. Let me know what you think in the comments. I wonder if you wouldn't mind sharing this. I'm going to tell you into a little secret. I've just, I've just been demonetized by Facebook. Look at the numbers on the live, much lower than normal because I speak the truth about things that social media don't want you to talk about. They're watching. Fuck it, I'm not going to shut up though. I'll just keep doing it. Thanks for tuning in. 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