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Buying vs. Renting

Buying vs. Renting

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 are paying rent, you are really just paying someone else's mortgage. Writing a check is just like watching your hard earned money work for someone else. Let's compare.

Rent vs. Owning_____

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.

www.thekastingteam.com

thekastingteam@kw.com

Tesha Perry - Team Leader

The Kasting Team at Keller Williams

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Posted by Tesha Perry on 04/18/2008 11:36 AM

Comments (6)

buying, renting, home, for sale, real estate, realtor, vancouver, clark county

This post has been included in Washington Information Clark County, WA Information
Post is included in group: Active Rain Newbies
Post is included in group: Keller Williams Agents

6 Comments on Buying vs. Renting

Say, that's a great breakdown! All renters should see this. Thanks for sharing! :)

04/18/2008 11:47 AM

by Debi Ernst, Real Estate Broker/Agent (Ryco Realty Group)

Good chart! If you don't mind I will show this to some of my renters to try to convince them to consider buying.

04/18/2008 11:51 AM

by AmState Realty Solutions LLC

Good stuff! But, I guess the prices and comparison for homes in my neck of the woods are gonna be a little different. (MUCH MUCH HIGHER!!!) haha

04/18/2008 11:51 AM

by Byron Green (Keller Williams Realty)

Hi Tesha,

Nice post and this is good info to share with anyone considering leasing. Thanks for sharing and have a great weekend. Michael A. Caruso

04/18/2008 12:06 PM

by Michael Caruso Real Estate Group

Tesha: Great comparison here. Good job! GOod luck to you

Don

04/18/2008 12:20 PM

by Donald Bradbury, REALTOR Bucks County PA (The Bradbury Team at Coldwell Banker Heritage)

Great post. Very interesting.

Have a great weekend!

04/18/2008 01:50 PM

by Amy Prouty, Prouty Home Staging, Brush Prairie, WA (Prouty Home Staging)

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