Myth #3: Rent is wasted money

Everyone Eagers to buy his own house for huge tax deduction & investment prospective. But the sky rocketing real estate prices is out of pocket of middle class peoples.

View from siliconvalley wrote :

They say bad news (or is it good news?) comes in three. (They also say memory is one of the first things to go when you get older...)

As I recall from college, the test for the "Turtle Club" had three questions of which I can only recall the first: "What do men do standing up, women do sitting down and a dog does on three legs?"

Get your mind out of the gutter. The correct answer is "shake hands."

The "Great Lies" also came in threes and I can even remember two of those:
1) I'll still respect you in the morning,
2) The check is in the mail.

Feel free to fill in the third "lie" at your leisure.

Given the prevalence of things in threes, we wanted our third myth to be a really big one. A "myth" which was so widely held that people would question our sanity.

Hence, "Myth #3: Rent is wasted money."

A renter's cost is just the rent. It's very clear. It's very simple.

A buyer's true "cost" is their total outlay minus the tax deductions, minus the principle payments and plus the lost interest.

Nobody seems to ever stop and think through "deductible" means you only actually "save" the deduction at the marginal tax rate.