Opportunity Costs. When you rent, you lose out
on the chance of equity – which can mean an increase in your home’s value
but, even in a down market, can also mean the chance of ever owning the
place you live free and clear.
Income taxes. If you earn above a certain
level of income, the income taxes you’re paying as a renter will be
substantially higher than they would be if you owned a home and could deduct
your property taxes and mortgage interest.
Storage. Many a renter simply has too many
personal belongings to stuff into their small apartment, so it’s not
uncommon for tenants to also pay for a storage space, without calculating
that expense into their “housing” budget.
Costs of improving the property. Long-term
renters may paint, replace the flooring, and do other improvements to make
the place livable. But since it’s not technically “their” home, when they do
move out, all the cash they invested is lost. In fact, some landlords may
require them the pay or forfeit deposit money to bring the place back to its
original, neutral décor.
Lost deposits. Anyone who has rented more than
a couple of apartments is well aware of the chances of losing some or all of
your security or pet deposits, no matter how well you care for your home.
Achieving the American Dream, One Homeowner at a time.