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To: Extremely Extreme Extremist

"The money that goes towards rent goes NOWHERE."

Money that goes towards rent gives one a place to live. No, you certainly aren't building any equity while renting, but you aren't paying for a new roof or fixing a busted hot water heater.

There are some people who don't want to buy a house. I can appreciate that. Other people can't see renting. I can see that also. But money spent on rent is not a waste, unless you consider living with a roof over your head a "waste."


19 posted on 12/29/2006 7:14:51 AM PST by fleagle
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To: fleagle
I've found a lot of working people with a decent credit score can buy a place for close to their rent plus their tax savings from the mortgage and property tax.

Some people rent out of preference or short term considerations, but many could buy, if they knew how to figure it out.

23 posted on 12/29/2006 7:17:20 AM PST by carolinalivin
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To: fleagle
No, you certainly aren't building any equity while renting, but you aren't paying for a new roof or fixing a busted hot water heater.

If the landlord is smart, the rent covers mortgage interest, insurance, taxes and maintenance. Anything less is a money losing proposition. There's no such thing as a free lunch. The only difference is that the rent is covering those expenses in advance. As the renter, you won't be calling out the contractor or writing the check for the repairs. If property values appreciate and the tax assessor cranks up the taxes, you can plan on a rent increase.

If you live in the home you are buying, you have equity accrual each month, a homeowners tax exemption (something the owner of the rental property doesn't get) and mortgage interest. You can structure the exemptions on your W-4 to put the money back in your regular paycheck to cover the part of the interest that is a write-off on your federal taxes.

A rental property doesn't get the homeowner's exemption, so guess who pays the full property tax?

132 posted on 12/29/2006 2:17:53 PM PST by Myrddin
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