No. of Recommendations: 1
I keep hearing how it's more Foolish to rent than
to own during early retirement, but I'm having a
hard time rationalizing this.

If you rent, you're paying a monthly fee that is
not tax deductible and the rent often increases at
a rate faster than inflation.

If you own (read: pay a mortgage), that monthly
expense is largely tax deductible and, if you have
a fixed rate mortgage, immune to inflation.

Yes, there are other expenses a homeowner must pay,
such as property tax (again, deductible), property
insurance, and maintenance. Utilities are usually
more expensive for a home as well. But these
expenses seem to pale compared to the tax
deductibility, not to mention the quality of life
upgrade a home seems to offer.

Later, when the home is sold, its value will have
appreciated, and the owner's equity in it will have
grown. This could more than offset the expenses
associated with selling it.

So other than portability, what are the advantages
to renting?
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