Buy vs. Rent
Posted by Barry Lynn Miller on Tuesday, August 10th, 2010 at 8:40pm.Buy vs. Rent: Cost Comparison
The chart below will show a cost comparison for a renter and for 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 home owner's payment is lower than the
renter's monthly payment. With the tax savings of home ownership, the
home owner'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 | .vv | . | Savings increase every year | |||
Full News Letter
If you have a question about if you should buy or rent give an Executive a call to provide you with a personalized cost analyses whether your should buy or Rent.
In Alabama some times rent is higher than a Mortgage so call us today and search for your Alabama Real Estate investment.
Sincerly Yours
Keller Williams Trussville
For all your central Alabama Real Estate Needs be sure to contact the "Executive Team"
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