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As a renter, you may not pay directly for property tax and repairs, but they do come out of your rent

Yes, but what the landlord is paying may be very different from what you'd be paying if you bought.

For example, I know a landlord charging $3,000 per month for a place that would rent for $5,000 (rent control) or have carrying costs of $6,000 if purchased today.

He does just fine since he bought 15 years ago, so his mortgage is $1,500 and his property taxes don't go up more than 1% per year.

So yes, rent must cover the cost of ownership, but not the cost of ownership today.




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