Are crazy high rent prices just rich people wasting cash?

So, have you guys seen how insane rental prices are these days? It's wild because wealthy folks still want to pay top dollar, even when the rates are crazy high. Take places like New York, London, or Monaco. People are dropping 10k a month and thinking that’s a steal. If you're paying 10k a month, that's 120k a year. Just think about it, over 100k gone in a year for rent alone. And in Monaco, paying 30k for rent isn't even a big deal. It's crazy to think folks are okay with just throwing away that much cash. Imagine wasting 30k every month... that’s 360k by the end of the year! That's money they could put towards buying or building a place. What’s up with this? What's going on in the minds of rich people? Do they just not care about their money?

For those of us who have low incomes or in general most of the people renting property "crazy" can be considered one of the burdens of life, but the story is different for those rich individuals who own and have high incomes renting property with prices that are quite expensive is a strategy or lifestyle, they think it is not an act of wasting money, because they easily get the economy "crazy". Indeed, the way of thinking of rich people and ordinary people is very different, where renting expensive property comes with comfort and freedom, without maintenance, without thinking about property taxes, and paying for insurance is a stressful action experienced by rich people, for those who are rich in cash (cash flow) is everything without risk, that is the way of thinking and logical reasons for financially rich people.

The thing is that they are not really interested in spending money to buy land or a house or they spend the money they earn monthly on rent and other expenses. Someone who does not have enough money to buy a house may have to spend money on rent despite his unwillingness, but I see most people saving up to buy a house so that they do not have to pay rent in the future. Again, there are many people who have to live in a mobile state due to their jobs, that is, they have to stay from one place to another in the country due to their jobs, in which case it is not possible for many to buy a house in different parts of the country, so they are forced to live in rented houses. This is not the negligence of the rich towards their money, it is the unwillingness to spend money due to environmental conditions.

Do what are you saying in essence? That someone that's isn't financially bouyant enough to build a house for himself shouldn't rent a temporary place he can be staying to hustle pending when he's financially strong enough to get a home for himself? Isn't that trash? There's no need to be pressured about getting a house and as it stands, you need to attain a certain level of financial stability before you can consider a building project. If you're still building your life early enough, get a rented apartment and don't feel bad that you're paying rent. When the time comes, you will eventually get a good house for yourself and do that without stress.

no. there is always a reason for a specific price. likewise... Resorts in general are based directly in a vacation spot. Some properties allow also some extra that are also expensive and you get many more advantage or insurance once you rent there. if you think in the past buying properties was one of the few methods for "invest" money... but value is based on location. This is way in Monaco price are a little higher than a poor town in a poor country.

I just dont get it are they not afraid if money will finished if you keep renting few years you lose 1 mil of usd and once this money are gone then you think later you would live well countries like thailand with 1 mil over 5 years. London nyc monaco clearly are money traps for rich to lose their wealth with property.

There are some people who think it's a waste to spend money on rent and its better to pay EMI for some years and purchase the same house instead. Other people think that staying on rent gives them the flexibility to relocate to any place and also provides them the flexibility to move to a new apartment at any point of time. So yeah, both have their own pros and cons and while some people prefer staying on rent, the others don't. It all depends on the individual's preference.

Well, you are talking about the wealthiest cities in the world. Of course they have high rents there. It is all a supply and demand equation. Everybody wants to live in London, Monaco or New York so the rents go up. If you find it expensive, you can live in some other city. There are plenty of cheaper cities all around the world which are as good as London if not better. Rich people also want to live among other rich people. They don't really want poor people around them so it makes sense for rich people to move to where other rich people live.

Rich people who can afford to pay such huge amounts for house rent earn much more and while investing in other well-meaning paying returns on investment, i think rentage is cheaper than owning an apartment. They have done their math and weighed their risk, hence why they much prefer to rent comfortable apartment for temporary stay in another person's country than draw so much attention to themselves with huge mortgage and insurance fees.

People are not happy to pay 10k and it's a fairly narrow band of society that is paying those sorts of rents (if talking about UK, there's massive differences in the currencies between these countries). People only pay those rents when the market prices dictate it, either for the higher end luxury apartments and/or living in some of the most expensive areas in these cities. You also have to be careful making comparisons with places like Monaco, which are often just a tax haven for the super rich who buy residency for the zero tax rate which can actually lead to massive savings for them. The point you seem to miss is that while it looks incredibly expensive to you, it's the equivalent of them spending $10 or $100 out of their income in many cases. If you're earning a million a year, then paying 120k for rent is not that much out of it and you often want to live in those areas for your networking or social life.

Everyone has some reason behind renting a house. Some are not rich enough to build a house, so they live in a rented house, some live in a rented house to stay in a place for a short time, some live in a rented house for employment or some live in a rented house to get some other facilities. No one is ever encouraged to live in a rented house without a reason. However, the money you are referring to, depending on the location, the value of that money may not be as high as you feel. The person who lives in a rented house for $30k, his income must be several times higher, the amount of expenditure is high due to the high inflation in that place, so after daily expenses, there may not be enough money to build a house. For someone who does not have enough money to build a house, living in a rented house is not a waste of money.

Well to me I can't logically call it waste of money.I mean it's their money anyway they can indeed choose how to make use of it. No offense but if it pains you that much that rich waste money then perhaps if you yourself was rich you would have still seen things different. That's just a perspective nothing personal. ​So Yeah everyone's financial life is different so as their spending and income. If a poor man is managing money then a rich man will be maintaining what is known as money management Even if you see them spending a lot of money to rent a house still they have already calculated what they are spending . So yeah that's all for me......

Ok so what those people doing ? Where are those wages to earn to pay 10k month. For average person tax evaiders and not honest ways comes in mind right to way. Its not just logical someone will pay like 20k-30k month for rent....what business they are in ? Whats their recepie to wealth?

For the lower middle class, yes spending 120,000 dollars or more per year just to rent a property feels very wasteful, but for those rich people it is just an operational cost, the cost of generating greater profits, and you also need to look at the location of each property, where in a location with a business center, expensive property rentals will be considered reasonable because it is in accordance with the results that will be obtained and another advantage is that you not only rent a place to live but also plus get access to a wider business network.

You are not rich so it will be difficult to really understand all the choices that the rich make sometimes. You may have to see things from their perspective because your worry for them still shows that your mindset has not matured to the level where you are no longer afraid to spend money because you are certain you will get it back and even more. Try building systems that can help you afford luxury, because those people who are big spenders have systems they have set up already that constantly brings money to them.

Of course if you have a house in your personal life then you are truly rich because those who live on rent spend a lot of their money on house matters and there is nothing left for them to save or invest.It is also true that rich people are earning a lot of profit from renting houses. Their money also keeps increasing with inflation.But they should see those who are making zero in every place that is those who have a business or job in other cities are forced to pay more rent.Therefore the government should choose a specific amount for house rent.It is also possible that you can fight the current situation and control your desires and reward yourself with a better house in the future.Instead of giving money to others try to buy your own house.

The comfort and convenience are what matters the most for rich people. So they don't mind paying high cost rent as long as they are also benefiting the place or property. Most especially if they are renting for business purposes, the price of monthly rent is nothing compared to the profits they will gained from their business. Rich people have different mindset from poor people. These rich people do not mind spending because they have a lot to spend, they have different source of investments that are generating money for them, unlike poor people who have limited source of funds, then they should be mindful where their money goes.

This is not about rent prices I mean my contribution, but about the rich buying up very expensive apartment and not living in it. If you look online, you would see that a lot of wealthy people do this. What I discovered is the reason for this is that they use it as a store of value after a while their apartment goes up in value and the resell it and make huge profits on it. This is one of the ways the rich make more money.

There's nothing wrong with those people. They're rich and that's why there must be a purpose why they do that. So, they're not going to spend thousands of rent in a year just throwing it away for that. There could be business deals there or if that's for personal pleasure, well, they're rich so they can anything they want with their money. I wouldn't question how people spend their money if they have worked hard with it or wherever they got it from. Who knows if that money is just a profit from a passive income which is just one or few from their sources.

Rents in these places can be expensive because of its high property values and taxes, and at some point, London is also highly demand when it comes to businesses and the likes. However with Monaco, this is more known as the playground for the wealthy so expect that most who visit the place are well afford for expensive rents. And to add those high-end amenities, then they should also pay the price that comes with it.