Buy vs. Rent: Cost Comparison
The chart below shows a cost comparison for a renter and a homeowner over a seven year period. The renter starts out paying $800 per month with annual increases of 5%.
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000. After 6 years, the homeowner's payment is lower than the renter's monthly payment. With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years.
|
Yrs |
Rent |
Mortgage Payment |
Monthly Diff. |
After Tax Savings |
Yearly Diff. |
After Tax Savings |
|
1 |
800 |
1000 |
-200 |
-50 |
-2400 |
-600 |
|
2 |
840 |
1000 |
-160 |
-10 |
-1920 |
-120 |
|
3 |
882 |
1000 |
-118 |
+32 |
-1416 |
+384 |
|
4 |
926 |
1000 |
-74 |
+76 |
-888 |
+912 |
|
5 |
972 |
1000 |
-28 |
+122 |
-336 |
+1464 |
|
6 |
1021 |
1000 |
+21 |
+171 |
+252 |
+2052 |
|
7 |
1072 |
1000 |
+72 |
+222 |
+864 |
+2664 |
|
8-30 |
. |
. |
Savings increase every year |
Nakisha Brisco, Realtor
Abek Real Estate 820 Oak Harbor Blvd. Slidell, La 70458, 504.717.7408 cell, 985.646.2111 office, 985.646.2772 fax, e-mail: arealtorworking4u@yahoo.com
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