Rent Vs Buy

It is evident that there are a lot of advantages that come with buying a home instead of renting one. You can look at these advantages in the Buy vs. Rent Comparison Chart.

Savings: Buying

In countless cases, the amount of money a renter spends on paying their rent is about the same as or even less than the amount of money a homeowner would spend on a mortgage. The tax benefit for homeowners often results in a great amount of savings.

Buy vs. Rent Comparison

The chart below compares the costs for a renter and a homeowner over a seven-year period.

• The renter starts out paying $800 per month with annual increases rate of 5%.
• The homeowner buys a home for $110,000 and makes monthly mortgage payment of $1,000.
• After 6 years, the homeowner's mortgage payment is slightly lower than the renter's monthly payment.
• With the tax benefit for homeowners, the homeowner's payment is less than the renter's payment after 3 years pass.

Monthly Expenses: Buying

The rent payment you make in part, take care of some housing expenses. However, once you make a decision to buy a home, you are therefore accepting all responsibility for paying for these expenses. These costs are additional and should be and should be included in your budget estimates since they are not a part of your mortgage payments:

• Property Taxes and any Special Assessments.
• Home/Hazard Insurance (in case of a fire and such).
• Utilities.
• Maintenance.
• Home Owner Association Fee: pays for trash and snow removal and maintenance of common grounds. (This fee does not apply to all home purchases).
• Membership Fee (This fee does not apply to all home purchases).

BUY VS. RENT COMPARISON CHART