[Fernicia]

> Unless you think landlords are running a charity, some part of your mortgage is going to them as profit (over a large enough sample of renters anyways), and some percentage of your rent is covering 'bad tenants' (which you're not, right?).

You can make the same argument about a bank not being a charity and making a profit from selling you a mortgage (both are true but are not helpful indicators about rent vs buying). Similarly the interest you pay is insuring the bank against bad debtors, which you presumably will not be.

> With home ownership though, things like a modern kitchen, a shed, new laundry machines not only better your life today but also (likely) have some value add.

You can improve your living situation in a number of ways when renting. If you want a new kitchen or bathroom, rent somewhere new with those things. Renting also affords you the freedom to leave when things go from good to bad (crime, noise, building ammenities, etc.).

[hx8]

> You can make the same argument about a bank not being a charity and making a profit from selling you a mortgage

So when you rent you have to cover the landlord's profit/risk and the bank's profit/risk because the landlord probably has a mortgage.

[hahajk]

> interest you pay is insuring the bank against bad debtors

I thought that was the govt:

> Loans securitized by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac continue to dominate the market, comprising around 52 percent of all balances at roughly $6.5 trillion. Government-backed loans, such as those insured by the Federal Housing Administration (FHA) or Department of Veterans Affairs (VA), account for 19 percent or $2.5 trillion. FHA loans are designed for first-time and lower-income buyers and make up 12 percent of balances, while VA loans that are available to U.S. military veterans comprise 8 percent.

https://libertystreeteconomics.newyorkfed.org/2025/08/a-chec...