Interest, capital expenditures, maintenance, insurance, potential lawsuits (hopefully not), time spent managing the properties. Don't disagree with you - it pays off the principal also goes towards other things. For some people not owning, having to take care of a property or put significant amounts of capital into a property is an asset. Not everyone for sure, but some people. For example myself until my late 30s was a happy renter - would I prefer the money going elsewhere? Yes. Would I have been able to afford the same lifestyle in the city? Absolutely not.