Owning vs. Renting
There are many advantages to home ownership, when you look at what it actually costs to rent compared to actually owning. The difference is unbelievable.
Rent Comparison Chart
This chart shows how much you will pay per year. For instance, if you pay $1,100 per month in rent; that will equal $166,028 in payments given to your landlord.
|
Monthly>>> |
$800 |
$900 |
$1,000 |
$1,100 |
|
Year 1 |
$9,600 |
$10,800 |
$12,000 |
$13,200 |
|
Year 2 |
$10,080 |
$11,340 |
$12,600 |
$13,860 |
|
… |
… |
… |
… |
… |
|
Year 8 |
$13,508 |
$15,197 |
$16,885 |
$18,574 |
|
Year 9 |
$14,184 |
$15,957 |
$17,729 |
$19,502 |
|
Year 10 |
$14,893 |
$16,754 |
$18,616 |
$20,478 |
|
TOTALS |
$120,748 |
$135,841 |
$150,935 |
$166,028 |
Own vs. Rent Comparison Chart
The chart below shows a seven year period of cost comparison for a renter and a homeowner. The renter starts out paying $800 per month with annual increases of 5% while 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 home ownership, the homeowner’s payment is less than the rental payment after 3 years.
|
Years |
Rent Payment |
Mortgage Payment |
Monthly Difference |
After Tax |
Annual |
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 continue every year after the 8th year. |
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CONTINUE READING Mortgage Information
Contact Joe DeLorenzo Broker/Owner of RE/MAX IN TOWN at joe@joedhomes.com or call 609-895-0500 x107.
