I'm quite confused with using 在 in a sentence. I learned that it usually indicates a place or a location. I'm trying to say "I also live here". I thought that since I'm referring to a place, maybe I will need to use 在. But when I remove it, the sentence sounds correct as well. Which sentence would be more appropriate?
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Grammatically 在 is required.
Unlike in English 'here' is an adverb which can follow verb directly, in Chinese 这里 is a pronoun, in order to construct a V-O phrase, there must be a preposition in between.
In colloquial language, people often omit 在, so it's also understood and appropriate, just less formal.
Actually both sentences means the same, but when you try to breakdown each word meaning, it should be like:
The last sentence lack of preposition but it still able to understood and looks like less formal.
Btw, the sentence should be constructed like S O V, and it should be like: 我也在這裡住, isn't it? But when the order like this, I think you can't omit 在.
When you study and speak Chinese, remember one thing: There is no such thing as grammar in Chinese. If you want to speak Chinese fluently, forget all about grammar.
So in this problem, "我也住在这里"="我也住这里". They are identical! Which one you like, you use which one. No Chinese will blame you for using one but not another. (I am a Chinese, believe me)