Joe DeLorenzo

Broker/Owner

 
 
 
 


Owning vs. Renting
 


There are many advantages to home ownership, when you look at what it actually costs to rent compared to actually owning.  The difference is unbelievable.

Rent Comparison Chart
This chart shows how much you will pay per year.  For instance, if you pay $1,100 per month in rent; that will equal $166,028 in payments given to your landlord.

Monthly>>>

$800

$900 

$1,000 

$1,100 

Year 1 

 $9,600

$10,800 

 $12,000

$13,200 

Year 2

 $10,080

$11,340 

$12,600

$13,860

Year 8 

 $13,508

$15,197

 $16,885

$18,574

Year 9 

 $14,184

$15,957

 $17,729

$19,502

Year 10 

 $14,893

$16,754

 $18,616

$20,478

TOTALS

 $120,748

 $135,841

 $150,935

$166,028 

 

Own vs. Rent Comparison Chart
The chart below shows a seven year period of cost comparison for a renter and a homeowner.  The renter starts out paying $800 per month with annual increases of 5% while 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 years.

Years

Rent Payment

Mortgage Payment

Monthly Difference

After Tax
Savings

Annual
Difference

After Tax Savings

1

800

1000

-200

-50

-2400

-600

2

840

1000

-160

-10

-1920

-120

3

882

1000

-118

+32

-1416

+384

4

926

1000

-74

+76

-888

+912

5

972

1000

-28

+122

-336

+1464

6

1021

1000

+21

+171

+252

+2052

7

1072

1000

+72

+222

+864

+2664

8-30

 

 

...savings increase continue every year after the 8th year.


CONTINUE READING Mortgage Information


Contact Joe DeLorenzo Broker/Owner of RE/MAX IN TOWN at joe@joedhomes.com or call 609-895-0500 x107.