4 ms·

Renters tend to pay less per month than owners so if you can take that monthly difference and invest it wisely you might be able to beat the owners while keepin

• RealGeek 11y ago
  Most renters pay more than than the owners. A typical breakdown of the rent looks like this: Rent = Mortgage payment + HOA + Property Tax + Maintenance + Land lord's profit
  • muzz 11y ago
    In areas where price/rent ratio is high, the "land lord's profit" portion is a large negative number
• barake 11y ago
  That depends on where you live. The house a few doors down rents for $1100/month. My mortgage, insurance, and utilities for a similar home is under $850/month. Of course, I'm in Kentucky where property is dirt cheap.
• usaar333 11y ago
  This is only true when price-to-rent ratios are abnormally low. It shouldn't be true most of the time: why would anyone own? On a per-month basis, renting should be more expensive than owning, especially when taking into account tax deductions that favor owning. The upside of renting is that you didn't have to unload a down payment and can in turn invest that money in something that gives higher rate of returns than property. Generally, renters pay more per month before opportunity costs are taken into account and less so (possibly even strictly less) when opportunity costs are taken into account.