Renting vs. Buying a Home: Can HOA Fees Be Worth the Money?

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NerdWallet's Smart Money Podcast 39 min 3 speakers 4 chapters transcribed 1 hour ago
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Sean Pyles 0:00
Today's episode is brought to you by Vinted.
Elizabeth Ayoola 0:02
Sean, do you have clothes in your trunk that you've worn but have no idea what to do with?
Sean Pyles 0:07
You know what? I do not because my car is super clean right now. But I'm betting that you do, Elizabeth.
Elizabeth Ayoola 0:13
I sure do, Sean, unfortunately. And I've been wondering what to do with these clothes. And then I found out about Vinted. So they're like this secondhand marketplace app and their mission is to make secondhand your first choice.
Sean Pyles 0:26
Yeah, Vintage helps their members find great deals and easily sell the clothes they no longer wear. And that helps give quality items a second life again and again.
Elizabeth Ayoola 0:35
And it helps the planet too. And we care about the planet, don't we, Sean?
Sean Pyles 0:38
We do. Well, Elizabeth, whether you're clearing out a bag of clothes in your trunk that's been sitting there for months and months, or you just have pieces in your closet you don't want anymore, vintage makes it super simple to refresh your wardrobe, earn extra cash, and give your clothes a second life. Plus, there are no seller fees, so you keep what you earn from every sale.
Elizabeth Ayoola 0:56
And also the app is free to download. I think that's a great perk.
Sean Pyles 1:00
Vinted makes listing items quick and simple. And once an item sells, Vinted creates a prepaid shipping label for you, which takes out a lot of the burden of sending your items.
Elizabeth Ayoola 1:08
See what's hiding in your closet or like me, your trunk. And you might be surprised how much you can earn with vintage. Download the Vinted app for free to start listing with absolutely no seller fees.
Sean Pyles 1:19
Hey, smart money listener, you could win a $250 Amazon gift card and help improve our show.
Elizabeth Ayoola 1:24
We're inviting you to take our annual listener survey. It's shorter than last year's and could bag you a sweet grand prize. We're giving away not one, but two $250 Amazon gift cards.
Sean Pyles 1:35
To participate, just visit Nerdwallet.com slash podsurvey or check out the link in the show notes and submit the form by September thirtieth for a chance to win. Official rules are at nerdwallet.com slash podsurvey. Good luck. Owning a home is still a core tenant of the American dream, but could renting be a better path to prosperity? Welcome to NerdWallet's Smart Money Podcast, where you send us your money questions and we answer them with the help of our genius nerds. I'm Sean Piles.
Elizabeth Ayoola 2:01
And I'm sorry to break it to you, Sean, but I'm the favorite co-host, Elizabeth Ayala. What?
Sean Pyles 2:06
says who?
Elizabeth Ayoola 2:08
Says the audience, vote guys. I'm just kidding.
Sean Pyles 2:10
Okay. Now we're in a competition here. Let's see who's the favorite.
Elizabeth Ayoola 2:13
All right. Here's this episode's question. Hi nerds. I was wondering if you could touch on home ownership versus renting when the home purchase in question comes with a condo fee. None of the rent versus buy advice I've seen helps me understand how we should be thinking about condo fees in a place like New York City. This time around, we are joined by Ryan Sterling, wealth advisor with NerdWallet Wealth Partners and affiliate of NerdWallet Inc. Welcome back, Ryan.
Sean Pyles 2:40
Thanks so much. Happy to be here. I know you talked a lot about the rent versus buy debate. So let's start by laying that out. You know, on one side, some will say that renting is just throwing money away while owning a home is a definite path to building wealth. And then on the other side, folks might say that renting gives you a lot of flexibility and who wants to deal with a money pit that is homeownership anyway. So in your work, Ryan, how do you think about this debate? Yes to everything you just said.
Ryan Sterling 3:08
Great. Uh debate settled. It really depends. I would say that my baseline here is that I am pro homeownership. Period. End of statements. However Homeownership is not necessarily the best way to prosperity. Number one. Number two, it's not right for everyone. Number three is it very well might not be in your best interest right now, depending on where you are in your life. So it is a huge, it depends. But my baseline is again, I think homeownership is a net, net positive for a lot of reasons. I think again though, it's not necessarily for everybody, especially at a certain point in time.

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