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Tim Hansen, REALTOR American Family Homes Real Estate Team 405-812-4646 | Email Me | Client Login | Register |
The Advantages
There are many advantages to buying a home versus renting one. If you
compared only the monthly rent cost versus a monthly home mortgage cost,
the rent cost will typically be about the same as or less than the monthly house payment. After accounting for the tax benefit for homeowners, the home ownership savings can be significantly higher. The chart below, Buy vs. Rent Snapshot, will provide a general estimate of savings. For a detailed financial comparison of buying versus renting, use this link provide by Realtor.com http://www.realtor.com/mortgage/tools/rent-or-buy-calculator/?source=web
Buy vs. Rent Snapshot
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 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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Tim Hansen, REALTOR
Phone: 405-812-4646
amfamilyhomes@gmail.com
American Family Homes
Real Estate Team
Churchill-Brown & Associates, Broker
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