10 places where renting a home beats buying

[taught_me_patience]

18. Much cheaper to rent where I live (los angeles)

Think of interest as "rent" of money from the bank and property taxes as "rent" from the city. Payments to equity is the equivalent of a non-liquid savings account and should be disregarded.

Typical home: 1.2MM

Interest (rent from bank) @ 5%: 60,000
Prop tax 1.25% (rent from city): 15,000
Mortgage Interest deduction above standard @40%MTR: 17,000
Total yearly cost (rent equivalent) to own: 58,000
Total monthly cost: 4,800

Ave. rent: 3,700. It's over a 1,000 cheaper to rent in my neighborhood/mo.