BUYING vs RENTING
BUYING
+ Substantial tax breaks for homeowners+ Build Equity to use toward a future home upgrade
+ Unlimited decorative freedom
+ Can create rental income property for future
+ Stability
- Home may lose value
- Must pay maintenance, taxes, and insurance
RENTING
+ No maintenance costs+ Shorter time frame makes moving easier and less expensive
+ Flexibility
- No equity built. Rent money is lost.
- No tax benefits
- Rent can increase
- Little decorative freedom
Examples of the costs associated with buying vs. renting a home:
BUYING:
Home Sales Price: $280,000
Total Monthly Payment: $1,690
Principle & Interest: $1,363.00
Homeowners Insurance: $30
Taxes: $112
Mortgage Insurance: $100
HOA dues: $85
RENTING:
Rent @ $1,200 a month
1 year: $14,000
3 years: $43,200
5 years: $72,000
Rent @ $1,500 a month
1 year: $18,000
3 years: $54,000
5 years: $90,000
Rent @ $2,000 a month
1 year: $24,000
3 years: $72,000
5 years: $120,000
Rachel
