BUYING VS RENTING

Buying vs Renting

Due to trends in home prices and mortgage rates, this is an excellent time to look into buying your dream house. If you’ve been thinking about buying a home, one question you’ve probably asked yourself is “Can I afford to buy a home?” Perhaps a better question to ask is “Can I affort to rent?” No matter how much you pay in rent, chances are that the amount you pay could add up over several years to be the price of your dream house, if not more. The following chart shows how much rent payments would add up to, considering the money invested would earn 5% interest.
Rent
$600
$800
$1,000
$1,200
$1,500
$2,000
$2,500
10 Years
$93,168
$124,226
$156,282
$186,339
$232,823
$310,566
$388,206
20 Years
$246, 920
$328, 827
$411, 034
$493, 240
$616, 561
$822, 067
$1,027,584
30 Years
$499, 855
$665,807
$832, 269
$998,710
$1,248,388
$1,664,517
$2,080,647
In addition to the investment gains lost through renting, you may want to keep into consideration common concerns most of us have as a renter as well as a home owner.
Advantages buying
Property builds equity
----------------------------
Tax deduction of Mortgage interest
--------------------------------------------
Free to change decor and landscaping
-----------------------------------------------
Not dependent on landlord to Maintain property
----------------------------------------------------------
Advantages Renting
----------------------------------------------------------
Sense of community, stability and security
-----------------------------------------------------
Easier to move

Considerations Buying
Responsible for maintenance
------------------------------------
Responsible for Property taxes
---------------------------------------
Responsible for Hazard Insurance
------------------------------------------
Less mobility than renting
--------------------------------
Considerations Renting
-----------------------------
No tax benefits
-------------------
No equity gains
-------------------
Possibility of eviction
---------------------------
Share by: