We’re so used to seeing real estate in CA rise over a 10 year time frame that we tend to automatically consider paying rent as “throwing away money”. But really, it’s all a financial decision. Comparing rent to buying from a financial perspective still requires that one calculate all the real cost involved. I have been a landlord and a home owner for many years. Even with all the tax deductions, etc…if it werent for appreciation, being a landlord would be a losing position. If you look at states with very low levels of appreciation, often the only arguement for home ownership is that over the long haul one gains equity in the house by paying off the loan. And then eventually lives mortgage free or at least very reduced due to inflation reducing the mortgage over time and the tax deductions.
