THE LOGIC OF RENTING

so it looks like the weird dream of everybody is to own a house, homeownership, settle down or whatever. However, is this a good impetus and goal?

doing some simple mathematics, even buying a $1 million home, with a very low APR rate, might still equate to around $4000 a month. Add property tax, home insurance, not negotiable sunk, that is around another $1500 a month. Therefore, even if you buy a “cheap” house, $1 million USD, you’re still looking at around $5500 USD a month.

Renting in LA, even a very desirable part of Culver City Los Angeles California, rent is only sub $3500 USD a month, Cindy and I currently pay $3200 USD a month for very very nice two bedroom one bath apartment in insanely desirable neighborhood.

Not only that, but our investments, yield at least around $2000 USD a month “passive” income. Therefore if you do the math, we are only paying about $1200 USD a month and rent. Pretty cheap.