Should I Buy a Home or Rent-Calculate the Difference And Decide

What is the financial Long term Effect of Renting vs Buying  A Home

Renting is always a viable option and there are many people ready to buy, but because of the ranting and raving of media are uncertain. Use the calculator to determine cost savings of renting vs owning.Let’s review the pros and cons of renting vs. buying:

Advantages:

  • No real estate taxes
  • No HOA fees
  • Minimal maintenance if any
  • Never have to replace the roof or paint the exterior
  • No remodeling
  • No loss of appreciation
  • Lower housing payments

Disadvantages

  • No interest deduction
  • No real estate tax deductions
  • No asset
  • No appreciation
  • Rents increase over time
  • Subject to relocating often

While money is not the only factor in purchasing a home it is generally the number one reason. Use the Rent vs Buy Calculator to determine if buying is right for you. You will be surprised at the savings owning has over buying. One calculation I performed for a $450,000 home price (10% down, 5% Interest) vs $2500 rent payment returned a savings of $88,000 over a 10 year period.

Plug in your numbers and you will probably be surprised that buying a home versus renting will put more money back in your bank account.

Rent vs Buy Calculator



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