This self-made millionaire lives in a rented 1BHK: 'I could buy a house in cash today but...'

Bernadette Joy says renting aligns better with her lifestyle and financial goals. At least for now. (Image credit: LinkedIn)

Bernadette Joy, a financial advisor from North Carolina, US, and author of Crush Your Money Goals, says renting — not owning — has helped her build wealth faster. Formerly an owner of four homes, Joy sold all her real estate in 2021 and now lives in a rented one-bedroom apartment. She told CNBC Make It that the move has made her richer, more flexible, and less stressed.

“I could buy a house in cash today,” Joy wrote in a recent article for Bankrate. “But for the last three years, I’ve chosen to rent instead.”

Between 2010 and 2022, Joy and her husband owned four homes, often two at a time — one to live in and one for rental income. But after reaching their first million in net worth, they sold everything and invested the proceeds. Within three years, they hit their second million.

Joy says homeownership comes with hidden costs that many underestimate. “We had to pay for trees that went down, roof leaks, plumbing issues, electrical issues,” she told the publication. “People really underestimate all of those costs.” Renovations and furniture added to the financial burden.

Being a landlord wasn’t much better. Joy recalls managing Airbnb bookings, hiring cleaners, and dealing with guest complaints — including one about where to place shampoo in the bathtub. “The emotional labour was not worth it,” she said. After crunching the numbers, she realised she could earn more by investing in index funds.

Renting also gives her the flexibility to move without the financial and logistical strain of selling a home. “We’ll be here for eight more months, and then we’ll go back to a two-bedroom,” she said. “That’s the nice thing about renting.”

Joy says many homeowners feel trapped by their mortgage rates and property values. “I see so many clients who want to move but feel like they can’t,” she said. “My income has grown in the last three years because I’m able to be mobile and I’m not spending all this time and energy maintaining this four-bedroom house.”

For now, Joy says renting aligns better with her lifestyle and financial goals — and she’s not looking back.