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Originally Posted by bizaro86
Yeah, that's a common misconception that renting is throwing money away. The same argument could be made about mortgage interest, condo fees, property taxes, etc. You don't get that money back.
You need somewhere to live, so it makes sense to decide which option has the lowest total cost to yourself. It could be either, it's a matter of math and what assumptions for future rental rates, interest rates, real estate appreciation rates, and rates of return on alternative investments.
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I certainly agree that renting is not always a bad option for the very reasons you've stated. Some of my younger friends and co-workers have been looking at purchasing or renting, and I always tell them not to dismiss one or the other, and to go with what makes the most sense both financially and personally.
But with interest, condo fees, property taxes, etc., you do get pride of ownership, as well as a greater sense of stability. Because with renting, you never know when a landlord is going to come out and say you're out of there. And any changes you make to the place pretty much requires a landlord's approval. Basically, renting means you're just using someone else's stuff.