Renting VS. Owning

Should you Rent or Buy?

Although some renters believe that renting is “maintenance free,” they are actually paying for maintenance in their rent – whether they need it or not. Renting offers you no equity, no tax benefit, and no protection against regular rent increases. If you’re paying rent, you’re really just paying someone else’s mortgage. Let’s compare.*

In the table below you can see how in some cases, when you factor in tax deductions you can own for less than the cost of rent! To find out if renting or owning is the right choice for you, give me a call and I'll be happy to assist you.

Rent vs. Own
Monthly Payment $1,000 Monthly Payment $855
Insurance $30 Insurance $50
Taxes $0 Taxes $260

MIP Insurance $45

Total Payment $1,030 Total Payment $1,210

Savings

Interest Deduction $0 Interest Deduction $175
Tax Deduction $0 Tax Deduction $75

After Tax
Net Monthly Payment $1,030 Net Monthly Payment $960

* Approximate Payment/Cost Comparison based on estimated annual tax results. Based on 2.5 tax bracket and on estimated first year interest and taxes. Recommend consulting with tax expert. Payment based on FHA 30-year fixed rate loan with 7% interest rate, sales price of $125,000 and a loan balance of $121,250. Interest rate/rental rates, prices, terms, and availability subject to change without notice. See a qualified tax consultant for more details.

Right now is the best time to buy with interest rates being very low, with a possibility of sinking to levels not seen since the 1960's! If you or anybody you know are currently stuck in the rent trap and want to get out, give me a call or send me an e-mail and together we'll see if buying is the best option for you.