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Renting vs Buying
| Monthly Cost or
Investment |
Renting
|
Buying
|
Rent or Principal and Interest
|
$1350.00 |
$1361.00 |
Property Tax
|
$0.00 |
$245.00 |
Insurance
|
$35.00 |
$39.00 |
Renters or Owners Repairs
|
$0.00 |
$166.66 |
Closing Costs PMI
|
$0.00 |
$87.48 |
Tax Saving
|
$0.00 |
(484.18) |
Amortization
|
$0.00 |
($206.85) |
Real Economic Cost
|
$1385.00 |
$1215.08 |
Equity after one year
|
$0.00 |
$9566.76 |
Equity after 3 years
|
$0.00 |
$28,700.28 |
This comparison is based on a $200,000
purchase price with 5% down payment and 3% appreciation per year.
Note that after tax savings the true housing
cost is less to own than to rent!
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