Rent Vs
Owning
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
vs. Buy Comparison Chart
This
chart shows how much you will pay per year - for example if
you pay $1,000 per month in rent, in 10 years you will have
paid your landlord/s more than $150,000!
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
3
|
$10,584
|
$11,907
|
$13,200
|
$14,553
|
Year 4
|
$11,113
|
$12,502
|
$13,892
|
$15,281
|
Year 5
|
$11,669
|
$13,127
|
$14,586
|
$16,045
|
Year 6
|
$12,252
|
$13,784
|
$15,315
|
$16,847
|
Year 7
|
$12,865
|
$14,473
|
$16,081
|
$17,689
|
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
|
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%
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
Years
|
Rent
Payment
|
Mortgage
Payment
|
Monthly
Difference
|
After
Tax Savings
|
Yearly
Difference
|
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 |
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the Dean a Question
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|