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You're paying all the transaction costs and maintainance costs and tax and insurance costs when you rent too. The landlord passes them on to you in your rent.
by azeotropic 7y ago
You're paying all the transaction costs and maintainance costs and tax and insurance costs when you rent too. The landlord passes them on to you in your rent.
One thing that can make it better to own (in the US) is that mortgage interest is tax deductible (at the federal level). Rent typically is not (although some states make rent tax deductible because voters naively believe this is a subsidy to renters and not to landlords).
- ap3 7y agoNot always the case because the market sets the rent - not the owners expenses In CA I might be paying double the tax than my neighbors but I can’t charge more rent than them
- azeotropic 7y agoYes, but perennially unprofitable units are going to leave the rental market. So it's not like owners' expenses are not an input into the market price.