Buying vs. Renting : In most cases, it’s better to buy a home than to rent. Renting is better only if your rent is very low, or if you plan on moving in a few years. There are many advantages to buying a home versus renting one. View these advantages below in the Buy vs. Rent Comparison Chart.
Buying vs. Renting COMPARISON CHART
In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.
Buying vs. Renting Comparison
This chart shows a cost comparison for a renter and a homeowner over a seven year period.
• The renter starts out paying $800 per month with annual increases of 5%
• The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
• After 6 years, the homeowner’s payment is lower than the renter’s monthly payment
• With the tax savings of home ownership, the homeowner’s payment is less than the rental payment after 3
Buying vs. Renting Cost Analysis Over Time
Buying versus Renting
MONTHLY EXPENSES: BUYING
Your rental company takes part of your rent payment to cover certain housing expenses. When you decide to purchase a home, you accept responsibility for paying for these expenses (listed below). They are additional costs to your monthly mortgage payment and should be included in your budget estimates:
• Property Taxes and Special Assessments
• Home/Hazard Insurance
• Home Owner Association (HOA) Fee: Doesn’t apply to all purchases. It pays for trash and snow removal and
maintenance of common grounds if applicable.
• Membership Fee: It may pay for recreational facilities and other services (cable TV).
We are the Selling Rocky Mountain Homes team. Visit us for more information.