
When and why do you prefer renting vs. buying things? - abakker
There has been a massive shift from products to services in the software world, the media world, and increasingly, even in the domain of how we consume physical goods. Aside from the economic considerations in buying vs renting - cash flow, financing, lump sums, flexibility - things we can all evaluate on our own, what are the characteristics of items you prefer to rent vs prefer to buy?
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richardknop
Major reason for renting is you are very mobile and travel a lot. For example
I have traveled around and worked in several countries over last couple of
years.

If I had a mortgage somewhere I couldn't live like I do now when I can freely
move to another country for a year for a gig, then move again. So renting
gives you flexibility to move after jobs quite easily and travel the world
while you're young, gain international experience and see other cultures.

Of course, once I settle down in one place where I'd like to stay I will buy a
property instead. But I haven't decided where I want to live yet.

Once you buy a house somewhere you pretty much have to stay in that area for
next 20 years and are limited to jobs in your local area. Of course, you can
sell, but 1) that's a hassle and takes time 2) there might be a down market
when selling for good price is difficult and then you're stuck in your place
until market turns around. If you're renting you can move whereever economy is
booming or there is some interesting niche job.

Long story short, if you rent, relocating for jobs or expatriating to a
different country is easy. So I'd recommend renting while you're very young
(<30-35) and buy a property later once you are more settled down.

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e59d134d
I prefer to buy. But whenever I buy toys, I assume one day I will get bored
with them. So I estimate resale value. If resale value is too low, then I
prefer to rent.

For example, when I bought my DSLR, I looked at various camera rental sites
and used prices of year old models. It showed me that I should buy the camera
because even if I sell it after couple of years, my overall cost of camera
would be only couple of weekends rent.

So generally I buy cars, books, video games, furniture, music CD (yes still
buy CDs) etc. Selling is really easy. (Lately, books have no resale value but
there is no book rental service other than library. Also I like to gift books
so it evens out.)

Only thing I rent because of above math is movies.

Then there are a few things I rent just because it is convenient to rent or
cost too much to own for short time period. So I pay for gym because I don't
want gym equipment at home. Or rent cars when traveling.

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pattrn
Despite the occasional disadvantage of buying over renting, I always prefer to
buy. Renting makes me question the extent to which I can use something, and it
makes me fear the consequences of breaking it. Rather than investigate and
remember the details of everything I choose to rent, I'd rather just own it in
order to reduce cognitive load.

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paulcole
>I'd rather just own it in order to reduce cognitive load

For some (myself included) there's more "cognitive load" in owning stuff. I
have to keep track of:

* Where is it?

* Where do I store it?

* How do I keep it safe?

* What upkeep does it need?

* When was the last time I used it?

* Do I really need it?

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paktek123
If I can't afford to buy it, I rent it :)

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twobyfour
Considerations are somewhat different for personal vs business use.

For personal use:

I prefer to rent things I don't intend to reuse indefinitely (movies, for
instance). But I'm very careful about recurring subscription fees. They add up
quickly. Netflix is my one non-utility subscription - mostly because it costs
so much less than a cable TV subscription while offering such a better
experience.

I prefer to purchase anything that might inhibit my access to data I intend to
use in the long term (basically, any software for creating/editing non-
ephemeral data). Also, a lot of software is ridiculously overpriced at rental
prices.

I rent my apartment because purchasing an equivalent home would cost multiples
of my rent every month - I basically couldn't afford it. Also, real estate is
already overpriced where I live and thus a poor investment, I don't want the
responsibility for upkeep, and I don't intend to stay in this location for
more than a few years.

I rent cars because I only need one once or twice a year. I don't even take
cabs more than about once a month.

Basically everything else I buy. Or don't need and thus don't buy OR rent.

For business, cash flow and spending money to make money flip some of the
considerations on their head.

Renting software for collaboration makes more sense than self hosting as long
as the costs are less than the value of the time you'd spend maintaining it.
Other software is worth renting or buying (whatever the business model the
producers use) simply because you need its features and you don't get a choice
of how to pay. The increased productivity of the right package over the wrong
one for an employee's core function is easily worth hundreds, often thousands
per year.

Office space: rental is a no-brainer unless you're Apple or Google.

Furniture: if you expect your company to exist for more than a few years, buy.
Furniture lasts a long time.

Computers: Buy Macs, rent Windows. Your engineers and designers need the
latest and greatest once every couple years, sure. But the rest of the company
will do fine with their hand me downs. However, the build quality on windows
computers is a race to the bottom, and I've seen too many laptops fall apart
within 18 months. Whereas probably 80% of Mac laptops are just fine 5 years
in, if a little cosmetically blemished.

Appliances: rent. Rental companies seem to have fewer qualms about replacing
your appliance and taking the old one back to repair, instead of stringing you
along scheduling repairman visit after repairman visit. And you just don't
want to be without a coffee machine or dishwasher for three weeks.

