Why do a lot of rich people pay rent instead of buy property?

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When I went to go looking for condos to rent in Midtown, Atlanta last year, I found some very nice communities. My financial situation changed and I no longer wished to buy. This year I decided to move there, but chose to look at rentals. The quality of the rental units I found far dwarfed the condos I’d looked at. For one, they were newer.

That’s when I realized why buying your home isn’t the most ideal way to tie up your money for someone in my position. The qualities that make a home a good investment are rarely found in a property that you’d actually want to live in. If you, say, want to live down the street from your mom, then buying a house on that street is a good decision, but only because you have no plans on ever moving, ever.

If you plan on being upwardly mobile, then you need to plan to move every once in awhile. I’ve lived in Atlanta for 10 years, but I’ve never lived in Midtown. I like where I live, but it’s not ideal, and there’s no way for me to have known that until after I’ve been living here for a few months.

If you want to be rich, listen to rich people. If you would rather just be financially independent, then listen to someone like Mr. Money Mustache. I would rather be rich than independent, to climb the social ladder rather than sit in one place accumulating wealth. I don’t save money, I re-invest it back in myself. Mr Money Mustache doesn’t appeal to me.