We sold our house and rented an apartment as an investment, we ask the question are you THROWING MONEY AWAY ON RENT – Why We Rent As An Investment. Part of our theory is using money smarter in early retirement and using Provincial and State laws to grow an asset from rent.

In our Province of Ontario Canada we have rent control to prevent landlords from increasing rents beyond what people can afford, so our rent has risen just under 2% per year. On the other hand market rate for rents has risen sharply, so if we were to rent our same apartment as if we were new tenants the landlord would charge market rates which at the moment are $400 more than we are paying. This “gap” in what we pay due to rent control over 5 years and what “market rates” are is equal to $5000 a year.

The other Provincial law is giving the ability to tenants to sub let their apartments, meaning if we wanted to move we could keep our apartment and sub let to a new tenant and keep the “gap” in what we pay and the market rate, giving us $5,000 annual income. Renting has therefore become an asset with real estate growth even though we are not property owners.

Financial Planning Wealth Creation Books We Like (Affiliate Links)

The Automatic Millionaire
The Millionaire Next Door
The Wealthy Barber
The Wealthy Barber Returns
Rich Dad’s Guide to Investing

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