Dr. Jay Zigmont, CFP®: Welcome to Childfree Life by Design. Today we’re talking about housing, renting, owning property, and what it means for people who are building a Childfree life on their own terms. I’m Dr. Jay Zigmont here with Fiona Waller. And in this episode we’re gonna be diving into: Should you rent? Should you buy? Should you own a house? Should you own a vacation home? Should you be a landlord? And how does that fit the Childfree life?
If you’ve ever wondered, what should you do and what are the voices in your head saying? This conversation will give you clarity and tools to make intentional decisions to support the life you want, not the ones everybody else is telling you.
Intro: From Childfree Insights, this is Childfree Life By Design, the go-to resource for building the Childfree life you want. Every episode gives you practical guidance, clear direction, and meaningful conversations to help you live intentionally and design a future on your terms. This podcast is for educational and entertainment purposes only. Please consult your advisor before implementing any ideas heard on this podcast.
Dr. Jay Zigmont, CFP®: I’m gonna give you a little clue. I’ve bought a lot of houses and as I was preparing for this, I realized I did most of those ’cause my father told me to. That doesn’t mean I should. So, I rent now. I’ve owned a home from the time I was 21 to the time I was 45. Over that time, I’ve at times owned two or three homes at once, but now I’ve switched. One of the things that people assume is that if you have money, you own a home. I have the money to own a home, but I rent. Fiona, what do you think about having the money to buy a house but still going, “Nope, I’m gonna rent”?
Fiona Waller, MSW, LCSW, CFP®: I think that’s such a good way of putting it. We’re talking about folks where that is an option, and maybe it’s a debate for them. A lot of us have a voice in our head from a parent figure or a mentor being like, “You should buy a home. That’s what we all did.” My goals are to be responsible, to do the right thing, and hopefully grow my net worth. That puzzle piece feels like it’s meant to be a default for everyone. I think to your point, and to a lot of the clients we talk to, it often doesn’t actually fit—mainly because of the flexibility premium you’re paying for renting versus owning.
Dr. Jay Zigmont, CFP®: Before we get into the numbers, let’s get into the head trash. I made my first million by the time I was 21 and spent it by the time I was 25. When I first made the money, I bought two things: a Hummer (the old school Arnold Schwarzenegger one) and a house. My father had found it—it was a foreclosure. He thought he knew something about real estate. Found this great property, did a whole bunch of cosmetic work, and paid cash. Then my father was like, “Yeah, and there’s this two-family rental you should have down the street.” That was one of the worst mistakes I ever made. As a landlord, you have to worry about everything. One tenant didn’t tell me there was a leak in the tub, so we had a water bill over a thousand dollars in one month.
Fiona Waller, MSW, LCSW, CFP®: Truly the horror stories!
Dr. Jay Zigmont, CFP®: Our parents lived in a different time. They bought houses for $16,000. Those voices get stuck in our head saying that is the right thing to do. Family thinks it gives you an anchor to the area, which Childfree people don’t necessarily need. Fiona, how do you handle that when family says you’re not successful unless you buy a house?
Fiona Waller, MSW, LCSW, CFP®: That’s a tough thing. I try to recenter on: “What’s your unique life and your unique values?” You might have things that are different about you than your parents. A great way is to talk to a CFP® professional who is an objective third party. I can look at numbers and be like, “I really don’t care about the family drama; I can give you the answer based on what you want.” Getting an objective opinion helps you realize you don’t have to copy everything else that you’ve been told.
Dr. Jay Zigmont, CFP®: Let’s pull apart the finances. Math-wise, if you buy a house now, you pay roughly 6% interest on a mortgage. That house might go up 3% to 5% per year, but it’s lumpy. If you take that same money and put it into the market, it returns 7% to 10% on average without taking out a loan. If I asked people if they’d take a loan to invest in stocks, they’d say “no way,” but they’ll take a $400,000 mortgage because “that’s what you do.”
Fiona Waller, MSW, LCSW, CFP®: People say “a home is a great investment,” but that blanket statement misses the details of neighborhoods and maintenance. All that nuance is missed when we’re told that’s just what you’re supposed to do.
Dr. Jay Zigmont, CFP®: Fiona, how do you look at life impacts for renting vs. buying? Who should buy based on their life?
Fiona Waller, MSW, LCSW, CFP®: My first screener is how long someone stays in the area. If you move every few years for work or family, those transactions are expensive. We do the math, and frequently it’s a net loss because of closing costs and maintenance issues right before a move.
Dr. Jay Zigmont, CFP®: Exactly. If you can’t tell me where you’ll be in three years, the answer is “rent.” People use anecdotes about a friend flipping a house, but that’s gambling. Now, if owning a home is part of your identity—like someone who wants the best garden in the world—then buy the house, even if it’s not a great financial decision. What do you think, Fiona?
Fiona Waller, MSW, LCSW, CFP®: I agree. I’m always shocked by how many people I talk to who quietly hate homeownership. They’ve been in homes for 20 years and never felt they could choose another way. Renting isn’t being “irresponsible.” It means homeownership isn’t your “third job.” You don’t have to deal with mold in the basement or plumbing issues.
Dr. Jay Zigmont, CFP®: I’m handy, but I still like just calling “Sam” the maintenance guy. When I moved to a rental, my payment was about the same, but I suddenly had extra money in my budget. I realized it was the “missing Lowe’s runs.” No more random cans of paint or lawn mower parts. When clients switch from owning to renting, they often say, “I will never own a home again.”
Fiona Waller, MSW, LCSW, CFP®: It’s the head space. People don’t realize how much of their “brain CPU” is used on maintenance and repairs. When they get that back, it’s a very good tradeoff for hobbies and friends.
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Dr. Jay Zigmont, CFP®: Some people push back and say they want to decorate. I tell them: “Go ahead and paint.” If you don’t get your security deposit back, so be it. Rent is the most you will pay each month, whereas a mortgage is the least you will pay because of taxes, insurance, and maintenance. If my landlord raises the rent $50, I negotiate or I pay it. If I get a new job cross-country, I just buy out my lease and go.
Fiona Waller, MSW, LCSW, CFP®: People often think they should be landlords, especially if they move from a prior house. They want “passive income.” But unless you are super lucky with a “unicorn” tenant, rentals aren’t passive. Broad index fund investing is the most passive version of income. Many people building a “real estate empire” feel stuck once they hit retirement because their money is tied up in properties.
Dr. Jay Zigmont, CFP®: Landlords who rented during COVID couldn’t even kick out non-paying tenants for years—that’s not passive! If you want real estate exposure, buy a REIT (Real Estate Investment Trust). Social media influencers push real estate because they assume you’ll keep the property until you die and hand it to kids for a “step-up in basis.” That strategy doesn’t work for Childfree people.
Fiona Waller, MSW, LCSW, CFP®: Exactly. If you’re childfree and doing a 1031 exchange, you’re just kicking a tax bill down the road that doesn’t serve your end purposes. It’s less flexible than you think.
Dr. Jay Zigmont, CFP®: We actually have ways to help Childfree people get out of commercial real estate using charitable trusts to lower the tax burden. And don’t buy a vacation home to Airbnb it! Just take your money and go rent an Airbnb anywhere you want. Why own a property miles away that becomes a giant pain in the butt?
Fiona Waller, MSW, LCSW, CFP®: I vote “no” on owning a vacation home and “double no” on owning it and renting it out. It’s an oxymoron to buy something for “relaxation” that is notoriously a headache.
Dr. Jay Zigmont, CFP®: Bottom line: If a house makes your life better, awesome. But don’t do it just for financial reasons. Owning a rental rarely makes your finances simpler or your life more amazing. Make sure you’re doing what you want, not what someone else wants.
Dr. Jay Zigmont, CFP®: That’s all for this episode. Remember, intentionally choosing to invest in moments of joy is just as important as investing in your future. Until next time, happy designing.
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