10/7    While doing apartment hunting, I decided to have some fun and checked
        out a few waterfront 1bdrm and studio rentals. Most of them range
        from $2500/month to $6000/month!! For me, paying $1200/month rent
        is a waste of money. Who the heck would rent something for that
        price when you can just buy something, perhaps a bit farther and
        at least have complete ownership? In another word, who fits in
        the insane profile of wasting $6000/month on a frigging
        rental property?
        \_ Someone I know recently sold her small, squalid, old apartment
           overlooking Central park for about 2.5 million dollars.  What
           do you think is a reasonable rent for a 2.5 million dollar aprtment?
           If a homeowner pays about 1000/mo for their 100,000 dollar home,
           wouldn't it make sense for the rent to be 25,000 on the 2.5 million
           dollar place?  Looked at in that light, 6000/mo is cheap.
        \_ I don't know how it is in SF, but in a lot of European cities (and
           from what I've seen, in NYC) it's either wealthy single (for the
           small places) yuppies who can afford it -- traders, executives,
           etc., wealthier people who want a nice city apartment because
           their big villa is somewhere inconvenient for commuting, or, more
           significantly, expats on a company housing allowance.  A friend
           of mine is blowing $4500/mo. of his company's cash on a NY upper
           east side 1-bedroom.  Why?  Because he can.   Like many luxury
           goods, of course it's completely absurd if you have limited
           resources like most of us, and better things to spend them on. -John
        \_ The answer is: because those rents are probably a really good deal
           right now.  $2500/month is probably 1/2 of what you'd pay in
           interest + tax + maintenance - tax deductions.  Now, note that I
           didn't include principal.  So really, if the non-investment portion
           of purchase is higher than the rent, you're losing money buying
           vs. renting.  In a few years the balance will shift and it'll be
           about even, or a better deal to buy.