As some of the others have pointed out, you are not throwing money away. Generally, unless you are paying all cash for houses, you have to pay for interests which is the same as renting. And now, since the market is possibly crashing, even if you put all cash into a house, you stand to lose a lot more than renting or buying with little down anyway. So you must remember that it is always relative. Given the circumstances, renting IS the best option. So you are preserving and saving money by doing what you do.
Now that you hopefully have no more guilt with renting, you can with your other issue of wanting a nice looking place to show your friends and dates. There is nothing wrong with buying a nicer place if you enjoy it and can live with your means. Just leave enough to save up enough to invest with and support yourself in the future.
Rent cheaper if you say no to these questions.
Are your friends the type that really care about what your place looks like? Why do you care what they think? Do you care what the place looks like? These relationships with friends and yourself are deeper and don’t require showing off of status. They only help your ego. Maybe you are better off renting an “okay” place so your friends at least don’t think you are running from the mafia. Spend that extra $200/mth.
Rent more expensive if you say yes to these questions.
Are you bringing back dates? Are you bringing back business clients/partners? These relationships can be helped by showing off status. Business partners/clients and women need to know that you can succeed and be financially supportive upon first impression. Not necessary, but it gives you a boost initially. Are you worried about crime? Are you in a better mood around nicer looking surroundings? Are you rich as hell but stingy for no good reasons? What else?
