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Maintaining a home can cost more than you might imagine. The reason it is profitable for landlords (at least for apartments) is due to the fact there many are
by nightski 13y ago
Maintaining a home can cost more than you might imagine. The reason it is profitable for landlords (at least for apartments) is due to the fact there many are paying rent within the same building (economy of scale).
Second, taxes are significant. Where I live (Fargo, ND) property taxes equal a rent payment alone. So it almost makes more sense (monetarily) to pay rent and invest the extra money into something more lucrative than a home.
- mcguire 13y agoCould you explain why you think you, as a renter, don't pay property taxes?
- Woost 13y agoProbably because it's split between everyone renting in the building, and while the tax is higher, it's not so much higher that you end up effectively paying the same amount. At least, that's my guess.
- recursive 13y agoBecause the IRS doesn't think I'm responsible for it.
- nightski 13y agoOh I am sure I do. That does not change the fact that for a $250k home I would pay ~400 a month in taxes (of course more or less depending on a variety of factors). Rent is currently $550 for a nice two bedroom apartment with balcony and heat included. Let's not forget that I have to heat that house all winter, which is a couple hundred a month in and of itself. I could go on.