buy or rent?

This academic study says that people who own houses are richer on average than people who do not. But generally, renting costs less per month than buying, so the answer must be the build-up of home equity and price appreciation, right? Well, one conclusion of this paper is that¬†theoretically, if you rented a house for a long period of time, and invested the amount of money you saved compared to paying a mortgage diligently every month, you would come out ahead in the long term over most periods of recent U.S. history. But this doesn’t happen, so maybe the answer is that the type of people who rent homes are not the type who invest, on average, and vice versa.

I wonder if they factored in my mortgage and property tax deductions, which I am hoping do not go away. I’ve always wondered – if two friends bought equally priced houses, rented them to each other, and paid taxes as landlords rather than homeowners, would they come out ahead or behind? As a landlord you can deduct all your maintenance and repair costs, plus depreciation which is just a weird thing that only exists on paper. Would there be anything illegal about this? Could family members do it? If so, why don’t they?

I’ve owned, and rented, and been a landlord and a tenant at the same time, because I’ve moved around and been in some weird situations with a growing family and that was the easiest thing to do. The best thing about renting is how easy it is. If you want to rent a place and really put some effort into it, you can live there just a few days later. I did that once although I had to clean it myself when I got there. The best thing about owning a place is you can mess with it if you want to. Especially the yard if that is your thing. And if that is your thing, it’s a little hard to put a financial price on.

Financially speaking, the man puts money in one of your pockets and takes it out of the other, as far as I can tell, and if you play it just right you have a few pennies left to save for a rainy day. Then you eat, sleep, shit, and do it again, and that is how the financial part of the world works, so it is best to look for meaning in other parts of the world.

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