To rent or to buy? Which is better for the person who needs a place to live and can afford either option? This is a trick question. To a great but not a total degree, it all depends upon relative prices. If you can purchase a home for $1 million, or rent that exact same space for $1 per month, the latter is by far the better choice. We are now assuming that this rental price will continue indefinitely. On the other hand, if the sale price for this house is $100 and the rental is $1000 monthly, only a very unsophisticated person would choose the latter.
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