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Caz,
Many people feel the way you do, so dont feel alone. However, look at it this way. If interest rates are 6% and you have a $200k property you are paying $12k interest (rent) to the Bank. If you are renting in a low yield area (as I do) at say 4%, then you are only paying $8k in rent.
Until such time as you build enough equity to purchase a property then renting is not a bad strategy at all.
As others have suggested, one alternative is to set up a Trust and then purchase the property you want and rent off the Trust. The loan interest is then deductible for the Trust. If your other investment properties are cashfolw positive, then you can have the surplus cashflow go into the Line of Credit for the property you are living in thereby reducing the debt earlier. Your other investment properties should be interest only loans.
Hope this helps.[8D]
