What if we in vain overpay every time we buy and not rent? Do we really need all these purchases, if it is often cheaper to rent a thing?
“Do you have an apartment?”, “And what about a car?” – the answer to these questions somehow immediately changes the attitude towards the person. It is believed that if you bought yourself something expensive, then you have achieved a certain position in society. Somewhere the way it is, because for all these purchases you need to earn money. But what if buying in principle is not a necessity?
A few days ago, I suggested to my new acquaintance a ride on the Dnieper on a boat. From a previous conversation with her, I concluded that she was from a wealthy family. And here is what our dialogue came out:
– Hello! I am thinking of taking a boat trip while the weather is fine. Will you make me a company?
– Do you have a boat?
I go by boat once a year or less, so buying a boat always seemed stupid to me. But this dialogue made me think about why some people want to buy and own everything, while others live as they please and, if necessary, rent things.
Ownership is essentially the same rent.
When a couple buys or borrows an apartment in a mortgage, this in society causes approval or at least understanding. The young family wants to build a nest for themselves, wants stability, so that the children have a place to live and so that there is something to pass by inheritance. Anyway, real estate is one of the few more or less reliable ways to invest capital. In the end, if you have the means, why not buy an apartment?
We will not even consider the examples of some wealthy people who do not buy apartments for themselves, but live in rented housing (like Artemy Lebedev). Apartments now painfully overvalued, this is understood even by people who do not possess deep knowledge in real estate and construction. If you calculate the cost of an apartment (let it be $ 200-500 thousand) and compare it with rent (let it be $ 10 thousand per year or $ 500 thousand for 50 years), then it turns out that the cost of buying and renting is approximately comparable. Of course, in the ownership of the apartment, as in the lease, there are obvious pros and cons. The only hitch is that ownership is, in essence, the same rent.
Nothing that I have really belongs to me.
How long will the house you bought last? 30, 40, 100 years old? If you think that in 50 years everything will be fine with your apartment, look at the Khrushchev houses. In general, very few homes outlive their masters. It turns out that buying an apartment is like long-term rental. No wonder in the same China, buying an apartment gives you the right of ownership for only 70 years.
How about a car? Are you buying a car – forever? Even if you do not change it, how long will it last? 10–20 years old? Then he will go to the landfill, but he was once all yours. It turns out that buying a car is also a long-term lease.
What about human life? The human body, which is given to us completely free, it, too, is not forever. We, in fact, rent our bodies – some for 30 years, some for 60, some for 90 years. We ourselves do inside the renovation, choose a quality “gasoline”, we drive the body to the “technical inspections” to the doctors. But the body is still not ours, because it does not last forever. We cannot possess something for centuries, therefore we cannot call it possessionin the full sense of the word.
Is there at least one thing in this world that we can truly possess? Hardly. Houses will collapse, cars will break and rust, and the former “owners” will go into another world.
Why do we buy?
A person living in a world of instability is willing to pay double the price for at least some guarantees. When buying an apartment, we hope that no one will evict us from there and that repairs can be made to your liking, without engaging in disputes with the owner. When buying a car, we want to be sure that, when necessary, it will always be available. And we buy new clothes to be sure that nobody wore it before us and that it will always be at hand.
A person has 24 hours a day. How much time can you spend on your things? A couple of hours on the car, 10 hours on the suit, a few hours on the phone and e-book, about 20 minutes on the bike. The rest of the time these things are idle, while they could serve someone else. But you paid for the full time – is it an overpayment?
Buying what you can rent, we pay extra for a sense of confidence. And this feeling often has little to do with reality, as in the case of cataclysms, wars and earthquakes, which can even your house with the earth, and in the case of ordinary domestic turmoil like a stolen car or accidentally torn jeans – there are no guarantees anywhere.
Therefore, if you see a person who lives in rent with a calm soul – take off your hat. He has a steel shutter, he does not need guarantees. But if a person has a clear love for shopping and an excessive desire to save money for a house / yacht / boat / plane, then it is possible that he thus seeks to compensate for his fears, to feel security and to establish control over his life. Pat him on the shoulder.
Renting, you do not overpay for guarantees and confidence in the future. Therefore, renting more profitable than buying.